5 EASY STEPS TO UNLOCK YOUR PENSION
STEP 1
STEP 2
STEP 3
STEP 4
STEP 5
Why Transfer Your Pension?
Windsor Pensions can arrange the transfer of your 'frozen' UK pension fund to a QROPS (Qualifying Recognised Overseas Pension Schemes). Some QROPS have more 'flexible' rules and after the transfer it may be possible to withdraw all of your fund as cash lump sum. You can then use your previously 'frozen' fund to purchase property, for day to day expenses or any other purpose you choose.
Disadvantages of U.K. Pension Schemes for ex-pats
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 to a QROPS (Qualifying Recognised Overseas Pension Schemes).
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 to a QROPS (Qualifying Recognised Overseas Pension Schemes).
