What does transferring your pension? Can I transfer my pension to another scheme? Can I transfer my pension to another country? You may have a pension and want to change schemes or country. In this case, you could be able to transfer your pension. Indeed, Your Benefit will tell you everything you need to know about transferring your pension.
What does transferring your pension mean?
There could be a lot of reasons that you want to move all or some of your money from your pension pot. Indeed, it could be for one of the following reasons:
- Moving abroad;
- Combining pensions you have with different employers;
- Finding a more advantageous scheme;
- The pension scheme you currently have is coming to an end;
- Your work has changed.
This is not a defined benefit, like national insurance, workplace pension, existing pension. Getting free impartial financial advice from a financial adviser may be a good idea so it’s easier to manage your transfer. This is true for retirement income, retirement planning, personal pension, tax relief, pension savings.
Transferring your pension to another UK scheme: what are the steps?
Transferring your pension to another UK scheme is possible. However, the scheme needs to registered in the UK. Additionally, you could buy a contract which will give you a guaranteed income. Indeed, this is called a ‘deferred annuity contract’.
You may make your transfer to another scheme. However, if it is not registered, you will likely have to pay taxes on it. Indeed, this is also the case for taking out lump sums.
You may also not be able to take out your pension after you become a certain age. Additionally, you could have to pay simply for transferring you pension. Indeed, you could even have to pay additional amounts to your new pension.
How can I prepare for transferring my pension?
In order to transfer your pension, you will have to do a couple of things. Indeed, you will first have to tell your pension provider and new provider. Indeed, you will also need to verify some things. First, if you can even transfer your pension to the scheme that you want.
Second, verify that your current scheme actually allows you to transfer your pension. Indeed, this may not be the case. Also, verify that the schemes are registered with HMRC. It is highly advantageous for you for tax purposes.
You could also be eligible for more benefits than what you are claiming currently. Then, Your Benefits can help. Indeed, we provide a free simulator that can show you all the benefits you are missing out on. In fact, you could receive more payments than what you get currently. And again, it’s free!
Transferring your pension to a pension scheme abroad: what should I know?
Transferring your pension abroad may be possible for you. Indeed, this is the case if you are in a pension scheme in the UK and would like to move it to another country.
Note that it is to your advantage to make sure that the pension scheme is a ‘qualifying recognized overseas pension scheme’ (QROPS). If it is not, the transferring of your pension may be refused. Additionally, you could have to pay a lot of taxes on all of your transfer. More specifically, a minimum of 40%.
As you can see, it is to your advantage that the scheme that you are transferring to abroad is a QROPS scheme. However, it is your responsability to check that is the case.
Do I have to pay tax when I transfer my pension to a QROPS?
You may have to pay tax when transferring your pension to a QROPS pension. Indeed, this depends on the country in which your new pension scheme will be. Indeed, make sure that you know in what country your new pension is based.
Note that the QROPS scheme might be given by your employer. Then, typically, you will not have to pay any tax on it. However, vierify this with your employer.
You may have applied for a transfer to a ‘qualifying recognized overseas pension scheme’ (QROPS) prior to 9 March 2017. Then, you will not have to pay taxes on your transfer.
You may transfer your pension to Gibraltar or a country in the European Economic Area (EEA). Indeed, then you could have to pay 25% tax. Indeed, this is the case if you do not reside in the European Economic Area (EEA), the UK or Gibraltar.
Otherwise, you could pay 25 % tax if you live outside the countries above no later than 5 years from now. If this is not the case, and you live within these areas, you will not have to pay any tax.
What if I transfer my pension to a QROPS not it the EEA, UK or Gibraltar?
You may not have to pay taxes when transferring your pension. Indeed, this is the case if the country in which you are doing the transfer is the country in which you reside. If this is not the case, you will have to pay the tax. More specifically, it will be a 25% tax.
You may move no later than 5 years following the transfer. Then, you will need to fill form APSS 241. Afterwards, provide it to your scheme administrator.
If you move to the country where your QROPS is, you will get a refund. Otherwise, you will have to pay 25% tax if you move away from the country in which your QROPS is.
What form do I need to fill for my pension scheme transfer overseas?
You will find everything that you need in form APSS 263. Indeed, it will tell you everything that you need to give in order to do the transfer. Furthermore, once completed, you can transfer it to the administrator of your UK scheme.
Note that, all the documents that you have to give need to be given no more than 60 days following the transfer. Indeed, if you do not do it in time, you will have to pay 25% tax on your transfer.
|Tax rates for pension pots over the lifetime allowance in 2022
|Tax rate for pension savings over the lifetime allowance
|How you withdraw the money
|If you withdraw money from your pot as a lump sum
|If you withdraw money in any other way
Additionally, you may or may not be a UK citizen. Then, this could affect if you have to pay taxes on your transfer. Il need to check cookies to additional cookies to understand.