Researching UK Pension Transfer for Canadian Residents? Doing so is never simple. This article explores some of the complexities of transferring UK Pensions to Canada for British Expats.
UK Pensions and Their Regulations
Understanding UK Pensions regulations is essential to kick off your research. Defined benefit or contribution, it is adherence to the Pension Freedoms Act of 2015 that underscores the responsible handling of pensions.
The Shift Beyond QROPS: Exploring International SIPPs
In a dynamic financial landscape, the notion of Qualifying Recognised Overseas Pension Schemes (QROPS) has undergone a transformation. Once seen as a conduit for pension transfers, QROPS now stand excluded from the equation, especially for Canadian residents. This shift requires exploring alternatives that align with the present regulatory landscape and the unique needs of expats.
The Emergence of International SIPPs
Stepping into the void left by the absence of QROPS, the International Self Invested Personal Pension (SIPP) emerges as a beacon of hope. This solution, regulated by the Financial Conduct Authority (FCA), addresses the intricate requirements of non-UK residents. Offering control over investments, diversification of currencies, and compliance with UK regulations, non resident SIPPs now known as UK SIPPs present an avenue for safeguarding retirement plans without the constraints of QROPS.
Navigating Costs
A mosaic of costs blankets the pension transfer terrain. To help you navigate through the complex web of fees associated with various products and providers, we have put together a comparison table.
| Novia Global International SIPP | Momentum International SIPP | The Sovereign International SIPP | STM International Pension Plan | IVCM Heritage SIPP | The Harbour International SIPP | |
|---|---|---|---|---|---|---|
| Setup Fee | £0 | £300 | £300 | £150 | £150 | £249 |
| Annual Fee | £180 (PA) (charged £45 per quarter) | £500 (PA) | £300 (PA) | £150 (PA) | £100 (PA) | £450 (PA) |
| Establishment of benefits fee | £200 | £250 | £250 | £130 | £250 | £150 |
| Income drawdown fee | £150 (PA) | £100 (PA) | £100 (PA) | £130 (PA) | £300 (PA) | £150 (PA) |
| Termination Fee | £0 | £250 | £250 | £155 | £995 | £499 |
| Able to facilitate insistent clients | NO | YES | YES | YES | N/A | YES |
All pricing will be + VAT if you reside in the EU. PA= Per Annum.
If you feel ready to take the next step, liaise with an Expat Independent Financial adviser that will evaluate your unique situation and discuss with you the best options and solutions.
UK Pension Transfer for Canadian Residents
Transferring a UK pension to Canada can feel challenging. Thankfully this is not a journey you have to take alone. At Harrison Brook, we specialise in assisting expats with their UK pension transfer. We take pride in providing good service to our clients and are non commission based. If you’d like to find out more please do not hesitate to get in touch leaving your details using the “Get Started” button below.
