Ever worked or lived in the UK (or know someone who has)? Important changes to UK Pension laws …..
The UK Chancellor, George Osborne, announced in his 2014 Budget that the Government will put in place legislation that will prevent individuals from transferring out of public sector schemes.
This has major implications for many UK pension holders who live in Australia (and elsewhere around the world). Historically, such people have had the opportunity to take their pensions with them when they leave the UK by transferring their pension into a ‘Qualifying Recognised Overseas Pension Scheme’ (or QROPS) – a HMRC approved way of moving pension benefits abroad. This can provide greater benefits and flexibility than UK schemes – namely enhanced death benefits, choice of currency, and often an improved income situation at retirement.
While this remains a viable option at present, it will soon be closed to many.
That is not to say, that UK pension holders should initiate a transfer without hesitation. Pension transfers are matters which continue to require diligence and careful analysis. But at the very least, those with defined benefit schemes should now find themselves motivated to examine the possibilities. This time next year will almost certainly be too late.
Please ‘like’ and ‘share’ if you know anyone who has ever worked or lived in the UK.
We are currently working with clients in this situation – and a number of schemes have a back log of requests, which means transfers could be held up ….. for who knows how long!