You don’t’ have to be a premier league footballer, a Formula ONE racing driver or lets face it a British Peer! UK expats can benefit from tax havens for their funds and their pensions too. Have a look at an interesting Daily Telegraph article. http://bit.ly/cBEGDM
You may not want to hear it but the first thing to remember is to remember you may come back! Talk to many expats abroad and they’ve probably moved abroad somewhere else before. Don’t burn bridges; pay owed taxes and parking fines. This isn’t so much as a comprehensive checklist, I’m sure you have one but this is a list of the most essential but overlooked “todo” items.
Over the last couple of years, expat pensioners in Europe have seen their pensions dwindle as the value of the pound plummets against other major currencies. They have also been hit by the increasing bank charges to service their income. David Retikin of Pryce Warner International mentions, “ its astounding just how little planning retired expats do to protect themselves against currency fluctuations. Qualifying Recognised Overseas Pension Scheme, or QROPS to quote its popular name protects expats by reducing real value fluctuations and the scheme attracts lower tax liabilities . . . its’s a simple yet very effective initiative”.
People are individuals with different aspirations and attitudes. Whatever your future plans are, the salient point for the majority of us is to enjoy financial security and have a regular income later on in life. Overseas pensions such as QROPS and prudent offshore investments can make a great difference to the overall value of your nest egg. With the number of financial products available the most important decisions is deciding whom to entrust and guide you in the right direction. Pryce Warner has many years of experience and matches products to individual requirements and circumstances affording you security, flexibility and peace of mind for the future.
Free QROPS guide;-
The annual appraisal of the state pension is traditionally based on September’s inflation results. The retail prices index was – 1.3% the previous month and was expected to be in parity or less for this month.
The resulting figures will see the state pension increase a mere £2.40 from next April, half the rise brought about the previous year.
The paltry increase will see pension payments increase from £95.25 to £97.65 per week, which prompted furious outbursts from politicians and Age Concern, whom are lobbying for reform in the UK pensions system.
It is thought that thousands of men and women already over the state retirement age have put off full retirement to earn an extra income for their domestic or QROPS overseas pension.
A SIPP or to give it its full title a “self invested personal pension” is in itself a pension plan. It is a “wrapper” that encompasses all your investments until you retire and start to draw a pension. In essence a SIPP allows you to make your own investment decisions from a barrel of pre-approved investment options. A good self managed or third party managed SIPP can be extremely beneficial in terms of tax relief and pension income when you retire compared to standard pension plans.
Typical approved investments include government securities, insurance company funds, investment and unit trusts, traded endowment policies, National Savings products and commercial property; the list is by no means comprehensive and different providers will offer and specialise in different investments depending on your personal circumstances and aspirations.
Free QROPS guide;-
Is there any point in opening an offshore savings account? This seems to be a big question for many people leaving the UK. Post emigration many expats continue to use the British banking system, in part due to familiarity and recourse for any discrepancies or queries that may occur with their bank account. However, this decision has to offset with the substantial benefits that can be realised once you lose your tax residency status in the UK from even the simplest form of offshore savings account.
You can also save offshore for your pension – and you can do so through a more conventional offshore pension plan such as QROPS. The offshore savings and investment paradigm has dramatically changed in recent years. Its no longer seen as slightly dodgy to have offshore accounts in fact expats who don’t are seen as behind the times.
In essence, to be free from the rules and restrictions associated with UK pensions after five complete tax years of non-residence. Then benefits are aplenty! Such as QROPS benefits on death are generally free from tax contributing to a substantial tax saving. Some QROPS enable a much higher level of income to be drawn at a lower tax rate. UK pension schemes restrict the lump sum that can be taken to 25% of the fund; many QROPS schemes do not have this restriction. QROPS generally do not have investment restrictions and allow the use of an investment manager of your choice. The list goes on, expats make sure you don’t miss out.
