Offshore Retirement Planning and Offshore Pensions

Which Offshore believes that retirement should be about enjoying yourself and relaxing, not about having to deal with financial stress later in life.

We have split this section into two categories. Offshore pension plans are for those of you who are working or living abroad and have not yet built up a substantial pension in the UK. Our QROPS articles will be of particular use to readers who have built up a pension in the UK and are looking to retire abroad.

Offshore Pension Plans

While possible over-salary benefits for expats are usually excellent, they almost never include a pension scheme. Even where they do, an expat working position may not last a lifetime and to continually start, stop and freeze a pension when you move will create a major headache and eroded pension capital on retirement.

Expatriate pension plans are not the same as UK private pension schemes. For one, there is normally no minimum age, or where there is it can be as low as 50 to begin draw down. Moreover, the retiree will be able to take possession of the entire asset – in cash if need be.

For further explanation on the benefits and options available to you, please refer to our Benefits of Planning Offshore article, along with our Pension Optimisation and Risk page, which gives a brief synopsis of managing a pension portfolio. Last but not least, check out the simple Pension Planning Checklist where you can consider where your priorites lie.

Qualifying Recognised Overseas Pension Schemes (QROPS)

For readers who are nearing retirement and are looking to retire in a different country, or those that already live and work abroad and have stopped paying into a UK pension scheme, there is a transfer option known as QROPS.

This is any one of the HMRC approved schemes that allow expats to carry their UK pension privileges overseas. That is, it allows you to ‘transfer’ your pension fund from the UK to an HMRC approved scheme elsewhere. This of course has potential benefits, not least tax and easier access. For a more detailed explanation of QROPS, please refer to our detailed introduction page on QROPS and Pension Transfers. Furthermore, we have a quick fire FAQ on QROPS, a simple comparison on the benefits of QROPS versus SIPPs (Self-invested Personal Pension), the Tax Implications and finally a breakdown of the Costs of Transferring your Pension.