SIPP Pensions for Expats

SIPP Pension Schemes

A SIPP is simply a UK government recognised personal pension scheme, which can offer greater investment freedom and control. If you are living abroad, the international version may provide more scope in respect of currency flexibility and investment options.

Your International SIPP can receive transfers from UK registered schemes and recognised overseas pension schemes.

Please note that UK state pension benefits cannot be transferred.

Your International SIPP will remain in the UK and as such will fall under UK regulations and the potential implications of any future tax and pension law changes. Your International SIPP can convert to a ROPS at any point if your circumstances change.

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Who Can Hold an International SIPP?

An international SIPP is available even if you are a non-UK resident. Many expats may not be aware that living in the UK is not a requirement to benefit from using an international SIPP. However, tax relief will not be provided at source when you are non-UK resident.

Many expatriates are enjoying the benefits of International SIPPs, which were developed to cater for those living overseas, where other pension schemes are deemed unsuitable.

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Top Five Benefits of An International SIPP

For expatriates, the international SIPP has several advantages over your existing UK pension plan:

Consolidation

• Consolidate all your fragmented pensions on one platform for cost effective investment management and pension administration.

Maximise the Benefits for your Beneficiaries

• 100% of your funds will be passed to your beneficiaries if you die before age 75 (subject to LTA) and a marginal rate of UK income tax will apply to your beneficiary if death occurs after age 75.  If you have a defined Benefit or Final Salary pension, your spouse will only receive a reduced benefit and your children will probably receive nothing!

Investment flexibility

• Dictate how your pension funds are invested.
• Tax-efficient options are available to enable optimal investment growth.

Capitalise on current High Transfer Values

• Final Salary and Defined Benefit pensions are currently paying out record multiples and so transfer values are at historic highs.  This will enable you to generate a much larger pension in the future.

Hold and invest your pension fund in any currency

• Instead of being restricted to GBP in the UK, an international SIPP allows you to hold and invest your funds in any currency – for example, the local currency in your country of residence.

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If you think an international SIPP might be for you, get in touch with our team for a free, confidential consultation.