Pensions

International SIPP

A Self Invested Personal Pension (SIPP) is a very flexible pension plan that allows you to take control of your own investment decisions when saving for your retirement. They provide greater choice and flexibility regarding investments, tax benefits and currency choice. International SIPPs allow investment in a wide range of assets, including overseas stocks and investment trusts, providing greater diversification.

International SIPPs can be used to manage or consolidate personal pensions, workplace pensions, and other pension schemes, offering non-UK residents the flexibility to oversee their retirement savings from abroad.

What is an International SIPP?

If you no longer live in the UK, an International SIPP allows you to transfer and consolidate benefits from UK-registered pension schemes easily and efficiently to your new country of residence, while still protecting you under UK regulations.

It’s possible to take regular or variable income using an International SIPP with flexi-access drawdown while still remaining invested. Also, purchasing an annuity is not mandatory.

For non-UK residents or British expats, an International SIPP enables expats to hold assets that are appropriate for international clients and in other currencies, yet still meet the key regulatory requirements of the Financial Conduct Authority (FCA) in the UK.

Benefits of an International SIPP

Most expats are able to open an International SIPP, whether employed, self-employed, not working or retired. An International SIPP is a UK based pension scheme that offers flexibility for non-UK residents. What is important to note is that where you have your main home will determine the tax treatment of contributions into the pension scheme.

International SIPPs can accept transfers from various UK pension schemes, including defined benefit pensions and personal pensions. However, transferring from a defined benefit pension may mean giving up guaranteed income that would otherwise provide security throughout retirement. If you’re still a UK taxpayer, you’ll get pension contribution relief on the money set aside for retirement; and if you’re a tax resident elsewhere, you can still have a SIPP but without tax relief on your contributions. Importantly, in either scenario, you can drawdown in any country but it’s important to check what Dual Taxation Agreements (DTA) are in place with the UK and the country that you are residing in with your financial adviser. International SIPPs also allow you to take your pension as a lump sum or in multiple lump sums, providing flexibility in how you access your UK pension benefits.

If you eventually plan to return to the UK, an International SIPP may be still suitable for you. However, if you’re planning on retiring abroad, a SIPP may not be the most appropriate pension solution and a QROPS may be more suitable.

Investment Options

Which are the most appopriate for you?

Choosing the right International SIPP depends on your individual needs, investment goals, and financial circumstances. Non-UK residents should carefully evaluate factors such as provider fees, available investment options, and the flexibility to hold multiple currencies. Leading international SIPP providers like Novia Global offer access to thousands of investment funds, including exchange traded funds and mutual funds, as well as the ability to invest in multiple currencies—ideal for those seeking broad diversification and currency flexibility.

It’s important to assess each provider’s experience with UK pension rules and their understanding of international tax treatment to ensure your chosen SIPP aligns with your retirement planning needs. By comparing features and costs, and considering your own risk tolerance and investment preferences, you can select an International SIPP provider that best supports your long-term financial security.

International SIPP v. QROPS

Like an International SIPP, a QROPS (Qualifying Recognised Overseas Pension Scheme) is aimed at expats with existing UK pension rights. The main difference is QROPS are typically more suited to those who have a large pension pot (i.e. close to the Lifetime Allowance, currently £1,073,100 for 2022/2023) as they may help mitigate future tax liabilities for exceeding the allowance when you come to draw benefits.

Compliance and Regulatory Considerations

When selecting an International SIPP, compliance with UK regulations is essential for non-UK residents. All International SIPPs must adhere to the standards set by the Financial Conduct Authority (FCA), ensuring your pension scheme is managed with transparency and investor protection in mind. This regulatory oversight provides peace of mind that your UK pension is being handled according to strict UK pension rules, even while you reside overseas.

Another key consideration is the tax treatment of your pension income and withdrawals. Dual taxation agreements between the UK and your country of residence can help prevent double taxation and reduce your overall tax liabilities. For example, if you are a US-based expat, the double taxation agreement between the UK and the US can help you avoid being taxed twice on your UK pension income. Navigating these agreements and understanding your obligations can be complex, so seeking advice from a financial adviser with expertise in expat financial planning is highly recommended. This ensures your International SIPP remains compliant, tax efficient, and aligned with your long-term retirement goals.

The Process

How to transfer an existing pension into an International SIPP

The process of transferring an existing pension into an International SIPP is relatively straightforward, but it’s imperative that the transfer is done correctly and cost-efficiently into a recognised and approved scheme.

Harrison Brook is an independent financial advisory company with transparent fees and no commission, fully regulated to provide cross-border financial advice. Fees are always explained clearly from the outset to allow you to make an informed and educated decision on your UK pension transfer.

To start the process with Harrison Brook you first need to tell us about your UK pensions. You can do this by clicking ‘Get Started‘ or by speaking to an adviser now on our live chat.