Looking for help to transfer your UK pension?
We provide advise and solutions to help expats unlock the full potential of their pension funds through a Canadian Registered Retirement Savings Plan (RRSP), recognized by Inland Revenue as a QROPS.
QROPS
(Qualifying Recognised Overseas Pension Schemes)
ü Avoid a potential tax liability
ü Avoid exchange risks
ü Grow your pension faster
ü Gain flexibility in your retirement options
ü Simplify your pension administration
ü Get Automatic Spousal Rollover
Do You Know What Happens to Your UK Pension?
When you leave the UK you are no longer eligible to make pension contributions to your UK pension schemes. Your existing occupational or personal pension funds become 'frozen' and usually grow at a slower rate than when they were active.
If you do nothing, when you reach retirement age (currently 50 but rising to 55 on 6 April 2010) you can take a lump sum of up to 25% of your fund, currently tax free. You will have three options for the remainder of your fund:
1. Defer your pension until a later date (max. 75 years of age).
2. Commence draw downs (taxable).
3. Purchase an annuity which will provide a pension for the remainder of your life (taxable). Unfortunately annuity rates have plummeted in recent years. When you die, your surviving spouse will receive either a reduced pension or nothing at all depending on the type of annuity.
The alternative is to transfer your UK pension fund into a Canadian RRSP which has been accepted by Inland Revenue as a QROPS (Qualifying Recognised Overseas Pension Schemes).
