We have put together a short guide to moving your UK pension funds overseas to fund your retirement if you wish to leave your pension in the UK.
Retiring abroad has become increasingly popular over the last decade, with more and more Britons heading to Europe or beyond to enjoy their golden years. According to the Office for National Statistics, there are more than double the number of Brits living in Spain than ten years ago. Who can blame them, with its extensive coastline and Mediterranean climate, offering plentiful beaches to enjoy and sunshine to soak up.
“There are around 247,000 British citizens aged 65 and over living in other EU countries.”
Office for National Statistics, 2017
Other retirees escape to countries further afield including Malaysia, Panama, Mexico and even Canada or the US. The number of Brits retiring abroad could increase with Brexit looming so it is more important than ever to transfer your pension funds overseas in a cost-effective manner.
Always check charges, fees and exchange rates
“British pensioners lose over £10.6 billion by living abroad.” – The Independent, 2015
If you choose not to transfer your pension overseas through a Qualifying Recognised Overseas Pension Scheme (QROPS), you’ll need to move funds every month to the country you’re living in. UK pension providers and banks may charge extortionate fees to make regular overseas pension transfers so a foreign exchange specialist, like Vorto, is worth considering. We will work with you to find the best solution and help you achieve the best rates and lowest fees.
Foreign Exchange specialists have many years of experience dealing with moving money abroad and therefore can offer expert advice, automated payments and open communication so you know how much you’re sending and receiving every time. Vorto will assign you with a trader who is familiar with your circumstances and account who is able to talk you through your options and work with you to achieve the best result.
Retired expats often have a savings pot – a reward for years of hard work – and so it’s even more important to make sure your hard-earned money reaches you by protecting the value of your transfers from fluctuating exchange rates. A foreign exchange specialist can fix the rate at which you move money. This is achieved by fixing the amount of sterling leaving the UK or the amount of your local currency arriving in your account, so you can be certain all your outgoings will be covered.
Foreign Exchange specialists often offer low transfer fees and great exchange rates – which are much more competitive than your high street banks – as well as an online account. This allows you to manage your pension transfers from anywhere in the world, at any time, using a secure online platform. You can also access your account via a mobile app so there is no need to pop into your local bank to organise transfers which is not necessarily easy when you’re overseas.
Regular pension transfers don’t have to be stressful. A regular payments plan enables you to set up automated transfers to occur as frequently as you wish. You will know how much money you are sending and receiving every time, giving you the ultimate control over your hard-earned finances. More time for you to enjoy the sunshine!