Many expatriates are unaware of how to gain access to their pension funds which are administered in the UK. Alconbury Trust provides tailored advice on the most suitable solution for your UK pension and investments. Our commitment to you is full disclosure, full transparency, and conflict-free advice in every aspect of our business. Contact us for a Free Pension Analysis and Review.
What Are My Options As A US Resident?
The Difference Between a QROPS and a SIPP
There are a various options available and we will help you decide which is one is best for you. It all depends on your current situation and what your financial needs are. We will determine this during our consultation and provide you with a plan.
Some of the options available are:
- Withdraw all your pension money in one go - this may result in a large tax bill.
- Annuity purchase – Use your money to buy income for your lifetime.
- Depending on your age, you can leave your money and make choices later.
- Take your money as and when you need it.
As you are no longer living in the UK, your pension provider may not be able to assist you with these options, they will refer you to a Financial Advisor. Again, because you are living in the USA, a UK advisor may not be able to provide you with advice. Alconbury Trust can help you navigate this tricky area and help you make the best choice.
Why Should I Transfer My Pension?
Living in the US brings about a number of factors and more often than not, UK advisors will not provide advice. Many times clients are left “in Limbo” because of this. Alconbury Trust is licensed and experienced and will help you find the best solution and assist you with the process.
WHAT IS A QROPS?
A QROPS is a Qualified Recognized Overseas Pension, it is a pension that is recognized by HMRC and allowed to accept transfers from frozen UK pensions. In March 2017, HMRC imposed a 25% tax on transfers where the accepting pension is not in the same country as the pension member. As there is no QROPS in the USA, this means that if you are living in the US, a QROPS will incur the 25% tax. Because of this a QROPS transfer for a US resident may not be the best choice going forward.
WHAT IS A SIPP?
A SIPP is a Self Invested Pension Plan. It is very similar to a QROPS, but it is based in the UK. It provides flexibility and allows you to take control of your investments. There is no 25% tax on a transfer to a SIPP. Again here, not many SIPP providers will work with US nationals, however, Alconbury Trust has the experience and partners to make this transfer possible.
WHICH IS BETTER FOR ME?
After a consultation, Alconbury Trust will be able to help you make the best choice.
WHAT IS THE PROCESS?
A Consultation is necessary to determine what pension you have currently and what your financial needs are. There are many factors that determine the best solution for you. We will complete a fact find and risk profile analysis to determine the best solutions. We will also ask you to complete a letter of authority so we can get information from your existing pension. Once we have all the information we need from your pension administrator, we will then be in a position to provide you with the best solution for you.