UK Pension Transfers
Transferring your UK pension to the USA is something which is often ignored or forgotten by clients and advisors alike. However, with transfer values continuing to increase, many international workers with a UK pension are now realizing the advantages in the search for greater investment freedom and better returns.
Maximizing your international employment or expat status and consolidating your UK pension(s) into one off-shore investment vehicle has some significant benefits:
- it allows you to draw income flexible through your retirement to suit your individual needs
- it gives you access to your retirement funds much sooner, from the age of 55!
- it enables you to pass on more to your loved ones
- it allows you to seek better returns and choose investments denominated in the currency of where you will retire (to avoid currency depreciation risk)
- it could improve your tax efficiency.
Free Brochure: "Guide to Transferring a UK Pension"
Why you should consider transferring your UK Pension?
Record High Transfer Values
The Cash Equivalent Transfer Value (CETV) is the amount your current pension scheme will offer you if you want to transfer out. For UK private pensions CETVs have hit record highs. This is because the risk-free investment return, used in calculating the CETV, is based on UK gilt yields which are currently at a record low level.
UK Firms Want to De-risk
Many UK companies want to de-risk their liabilities and get final salary pensions off their balance sheets. They are actively incentivizing members with increased CETVs or cash payments on the condition they transfer out their UK pension.
Uncertain Market Climate
With so much uncertainty in the financial markets, investors are looking to get greater control over their investments. UK pensions can be restricted where moving the pension to an off-shore investment vehicle will provide more freedom and potentially better returns.
What is needed to transfer a pension from the UK?
The only formal requirement is that you need to receive advice from a qualified financial advisor if you want to transfer a UK pension valued at over £30,000.
However, with anything as important as your retirement, it is always recommended you seek professional advice. Our regulated independent financial advisors specialize in tailor-made opportunities such as UK pension transfers.