Looking into your pension options when heading in foreign countries
Exploring your pension options when moving abroad
It's a fact that more British people are choosing to spend their retirements abroad than even before, and the numbers are growing year after year. Whether it's on the other side of the world or somewhere a little closer to home, the decision to pick up everything and start life afresh in a foreign country is a major one. With so much to get organised, pensions may not be at the top of your list - but a few simple changes could well see your money working even harder than before.
Leave it or switch to a new scheme?
Some people may choose to leave their money just where it is, but that means that you may not be maximising its potential; there are two different schemes worth looking into that could offer a much better return on your investment: SIPPS and QROPS. They both have their ups and downs but between you and your financial adviser you'll be able to see which is better for you and your objectives. Just make sure that you have the most current information available and you'll be able to make an informed decision.
Self Invested Personal Pensions, often shortened to SIPPS, are the ideal scheme for the investor who likes to be in control of their money and wants to know exactly what it's doing. It's your decision as to where your investments will go as well as your responsibility for getting any payments regarding taxes and upkeep organised. Building a SIPP gives you access to a huge variety of different savings opportunities, and once you reach your mid-fifties, you'll be able to pull out a lump sum of up to 25% as well as knowing that you've got a decent, regular income.
The case for QROPS
Qualifying Recognised Overseas Pension Schemes (also called QROPS) work in a different way to SIPPS. The scheme remains subject to British laws and taxes until you actually decide to make the big move abroad, then will eventually switch after five years so it comes under the legislation of the country you're now resident in. On retirement you're allowed to take out as much capital and income as you wish (which is ideal if you're looking to buy a brand new place), but remember that the annual running costs are higher than the alternative option.
Whatever scheme you choose to invest in, the first thing to do is to speak with an expert to discuss what's best for you. Once you've chosen, you must look into the various options that are available and only then can you start building for the future. Then all you need to do is make your move and settle in to your new place in the sun.
It's a fact that more British people are choosing to spend their retirements abroad than even before, and the numbers are growing year after year. Whether it's on the other side of the world or somewhere a little closer to home, the decision to pick up everything and start life afresh in a foreign country is a major one. With so much to get organised, pensions may not be at the top of your list - but a few simple changes could well see your money working even harder than before.
Leave it or switch to a new scheme?
Some people may choose to leave their money just where it is, but that means that you may not be maximising its potential; there are two different schemes worth looking into that could offer a much better return on your investment: SIPPS and QROPS. They both have their ups and downs but between you and your financial adviser you'll be able to see which is better for you and your objectives. Just make sure that you have the most current information available and you'll be able to make an informed decision.
Self Invested Personal Pensions, often shortened to SIPPS, are the ideal scheme for the investor who likes to be in control of their money and wants to know exactly what it's doing. It's your decision as to where your investments will go as well as your responsibility for getting any payments regarding taxes and upkeep organised. Building a SIPP gives you access to a huge variety of different savings opportunities, and once you reach your mid-fifties, you'll be able to pull out a lump sum of up to 25% as well as knowing that you've got a decent, regular income.
The case for QROPS
Qualifying Recognised Overseas Pension Schemes (also called QROPS) work in a different way to SIPPS. The scheme remains subject to British laws and taxes until you actually decide to make the big move abroad, then will eventually switch after five years so it comes under the legislation of the country you're now resident in. On retirement you're allowed to take out as much capital and income as you wish (which is ideal if you're looking to buy a brand new place), but remember that the annual running costs are higher than the alternative option.
Whatever scheme you choose to invest in, the first thing to do is to speak with an expert to discuss what's best for you. Once you've chosen, you must look into the various options that are available and only then can you start building for the future. Then all you need to do is make your move and settle in to your new place in the sun.
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