# Pension Release?



## smithy45 (Apr 15, 2009)

I have seen several companies advertising in the english free papers, sur in english, Euro Weekly etc claiming that they can release your UK private pension.

This got my attention because I have a UK private pension fund, and I dont know if anyone has been keeping up with current affairs but pension funds are really in big trouble with the financial collapse and forecast to plummet further. 

So if the companies I have seen advertising can do what they claim they can do, and release all my pension fund then thats something that I would seriously consider, as I think I would be better off investing the money from my pension myself rather than leaving it where it is and watching it diminish even further, and things are pretty tight at the moment so a little extra cash would not hurt either.

So I am just wondering if anyone has any experience in dealing with any of the companies advertising. Are they for real?

From what I have read, the most it is possible to release from a UK pension is 25% so it all sounds a bit too good to be true perhaps...


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## Chica (Mar 23, 2009)

Sorry, I know nothing about this but will be interested in any replies you get from someone that does know.

I am sure someone will be along soon to answer your quetion.

Regards


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## jojo (Sep 20, 2007)

I have no idea I´m afraid, altho I have a motto in life, "If something seems too good to be true, then it usually is"!!

Jo xx


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## Chica (Mar 23, 2009)

I wonder how much of a chunk they will take out of it


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## SteveHall (Oct 17, 2008)

Yes, there are several companies offering these schemes. There is no "too good to be true" about it. It is a simple fiscal decision on the part of the client as to whether he/she thinks it is right for him/her. Very much like taking a mortage - in my opinion and for me, "never again" but many other people are totally happy to carry that responsibility. A partner of mine in another business is a director of a financial services company and can advise. 

If anybody is interested please PM me.


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## Brendanwest (Apr 15, 2009)

Yes indeed there are several companies advertising for this now. My wife and I both used the services of one such company based in Alhaurin El Grande a few months ago to cash in both our UK private pension funds. 

Without going in to too many details, the process basically involved transferring our UK SIPPS to an offshore SIPP account (as everyone is legally entitled to do). It took 7 weeks for my pension to go through the lengthy legal process, and 9 weeks for my wife's fund. 

Once the pension funds are offshore then basically they can be cashed in, and the value of the pension transferred to an offshore account (for tax efficiency purposes).

Obviously it cost a fair bit to set this up. The legal fee's for both my wife and myself's sizeable pensions amounted to over 15% of the value of each of the funds. We have no regrets though as if we had left them where they were however then I have little doubt the value of our pension funds would be worthless within the next year, as from all the forecasts I have seen pension funds are undoubtedly headed towards the proverbial iceberg! We have already reinvested most of the money in to safe investments that we have control over. 

Obviously you have to be a bit careful with who you trust your pension fund with, this is Spain afterall. So if smithy45 (or anyone else) want details of the people I used in Alhaurin then feel free to send me a PM.


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## smithy45 (Apr 15, 2009)

Thanks for the info. 

I have decided to go ahead with it, so will report back on how this goes for me.


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## twoods123 (Jul 14, 2009)

Hi there,

would be interested to see how you get on with this, sounds great, as normally you can only cash in 25% and not until your 50 soon to be 55


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## lakelander (Mar 31, 2009)

Brendanwest said:


> Yes indeed there are several companies advertising for this now. My wife and I both used the services of one such company based in Alhaurin El Grande a few months ago to cash in both our UK private pension funds.
> 
> Without going in to too many details, the process basically involved transferring our UK SIPPS to an offshore SIPP account (as everyone is legally entitled to do). It took 7 weeks for my pension to go through the lengthy legal process, and 9 weeks for my wife's fund.
> 
> ...


Obviously I know nothing about your personal details or the particular scheme.

I know they can be suitable for some people but what I would say is that you should always take independent advice from a Financial Adviser before going ahead with anything.

It depends on your personal circumstances and if you are desperate to release the cash but you should bear in mind also that depending on your age if you take the funds now then they will not be available to you later to provide pension.

If your only purpose was to reinvest the money in safer investments that you have control over then you had that option with a SIPP.

A Self Invested Pension Plan (SIPP) is exactly that. You have total control over where the funds are invested. Most SIPP's have a wide range of funds including cash funds. Any reputable adviser would have been advising you long before now to move the money into less volatile investments such as cash until the current crisis is over.

If anyone needs any advice on this I can put you in contact with a reputable UK IFA who has a representative working in Spain.


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## lakelander (Mar 31, 2009)

I can't find how to modify my last post. Only spotted my mistake after I posted it. A SIPP is of course a Self Invested Personal Pension


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## twoods123 (Jul 14, 2009)

lakelander said:


> I can't find how to modify my last post. Only spotted my mistake after I posted it. A SIPP is of course a Self Invested Personal Pension


yes this may be correct, but if you need a lump sum now then this is the best option to get your hands on some cash, alot of pensions have lost a hell of a lot of money, i had one client that paid in £77,000 in his pension and its now only worth £41,000, so this should be baired in mind when giving your pension pot away for some else to play with, a sipp can be a good thing, but thats what they said about pensions years ago and look whats happening to these now!! the bottom line is that all investments are a risk, so your better off having the money in a bank, least you know it cannot suddernly drop overnight.


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## lakelander (Mar 31, 2009)

twoods123 said:


> yes this may be correct, but if you need a lump sum now then this is the best option to get your hands on some cash, alot of pensions have lost a hell of a lot of money, i had one client that paid in £77,000 in his pension and its now only worth £41,000, so this should be baired in mind when giving your pension pot away for some else to play with, a sipp can be a good thing, but thats what they said about pensions years ago and look whats happening to these now!! the bottom line is that all investments are a risk, so your better off having the money in a bank, least you know it cannot suddernly drop overnight.


As I stated in my original post whether this is the best option is something that should be determined with independent advice. 

It is possible to release a lump sum from your UK pension depending on your age and the type of scheme. As stated by another poster this is normally limited to 25% although if it's an occupational scheme with protected cash it can be higher.

These schemes prey on people who are eager to get their cash out. They charge large commissions which can be much more than 15%. Furthermore they are against UK revenue regulations and if found out you will be subject to a heavy tax penalty on the total fund.

I agree that a lot of pension plans have lost a lot of value but so have all forms of investment. SIPP's can be a good thing but are normally for the more sophisticated investor with a fairly large investment as the charges generally tend to be higher than with a normal personal pension.

You cannot apply one rule to all as it depends on each individuals circumstances. Someone with 10 years or more to retirement should not be overly concerned with the present large drop in value as the markets will bounce back as they always have. However if that someone has 2/3 years to retirement then it's a different story. Ideally they should have already moved their funds to safer investments, i.e cash, fixed interest, to protect the capital already built up in view of retirement.

Similarly as regards leaving your money in the bank. Yes your money should be safe (although how safe would it be at the minute if it hadn't been for the billions the UK taxpayer spent bailing them out). but over time inflation will eat away at the value of it. Again it comes down to your attitude to risk. If you're a cautious investor you'll be happy with this. If you're a balanced or adventurous investor then you won't be happy with the returns available from a bank account.

As you stated all forms of investment are a risk so it's better to get professional advice on your individual circumstances before coming to any decision.


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## twoods123 (Jul 14, 2009)

lakelander said:


> As I stated in my original post whether this is the best option is something that should be determined with independent advice.
> 
> It is possible to release a lump sum from your UK pension depending on your age and the type of scheme. As stated by another poster this is normally limited to 25% although if it's an occupational scheme with protected cash it can be higher.
> 
> ...


Quiet agree with a lot of what your saying, i suppose like you said it depends on the individial, if you need money quick its a perfect solution, who wants to be the richest person in the grave yard.

thanks for the comment.


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## UKMarbella2009 (Sep 24, 2009)

*UK Pensions*

Ok, well I may dissapoint a few people with this post, but as they say if it sounds to good to be true !!

I won't say who I work for to avoid this coming across as an advert for my services.

However I have worked as a financial advisor in the UK for a major bank, and now work offshore for a Gibraltar based company. Dealing with QROPS ( offshore pension schemes)

Essentialy the EU law has forced the UK government to allow UK pensions to be moved offshore if a UK resident desides to relocate to another country.

HOWEVER the HMRC has stricht conditions over how this pension transfer happens.

One of the conditions is that the new offshore pension has the characteristics of a pension scheme i.e. it is not all cashed in.

There have been regions that have been 'bending' the rules e.g. Singapore and New Zealand.

In the past if you moved your pension into a singapore scheme (via companies such as those in southern Spain), you could access all your UK pensions in cash (but not the state pension). HOWEVER the HMRC got wise to what has happening, shut down singapore as a jurisdiction, and demanded 55% tax from all those pensioners that had abused the system. YES 55% of your pension has to be paid back to the UK government, no matter what you have done with the money. The remaining money was 'frozen' in the singapore scheme by the HMRC (if it had not been cashed in)

It is likely New Zealnd will soon go the same way due to their 'dodgy' interpretation of the QROPS rules.

There's not enough space to go into full details here. But contact the UK HMRC, and they will explain what you can and cannot do with any pension you move offshore.

The main benefit if you move your pension offshore correctly, is that you do not have to buy an annuity (as you do in the UK), so the money can be passed to beneficiaries.

There are many good companies, that provide good QROPS schemes, and equally as many that flout the rules, promise you the world, and take your money.


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## expat76 (Oct 23, 2009)

smithy45 said:


> I have seen several companies advertising in the english free papers, sur in english, Euro Weekly etc claiming that they can release your UK private pension.
> 
> This got my attention because I have a UK private pension fund, and I dont know if anyone has been keeping up with current affairs but pension funds are really in big trouble with the financial collapse and forecast to plummet further.
> 
> ...


In answer to the above, with my situation I decided to look at pension release when I was made redundant, approaching my 50th birthday. It turned out to be the best option for me. I released enough cash from my pension to be able to clear my mortgage and the money that was left should give me a reasonable pension when I do come to retire. There are a few a companies out there that offer this so it's important you do your research before going through with it. In the end I decided to go with a company called braemar and so far they have been pretty good.


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## UKMarbella2009 (Sep 24, 2009)

expat76 said:


> In answer to the above, with my situation I decided to look at pension release when I was made redundant, approaching my 50th birthday. It turned out to be the best option for me. I released enough cash from my pension to be able to clear my mortgage and the money that was left should give me a reasonable pension when I do come to retire. There are a few a companies out there that offer this so it's important you do your research before going through with it. In the end I decided to go with a company called braemar and so far they have been pretty good.



Blimey, it's difficult to explain to people

QROPS is designed to replicate a UK pension, NOT allow cash release. So the HMRC government are clamping down on jurisdictions that have done so

Anyone who has cashed in their full pension through a Singapore scheme, are now being chased for a 55% tax bill by the UK government. Regardless of what they have done with the cash. Singapore was shut down for flouting the rules. Gibraltar, Hong Kong, and New Zealand may be next

If you have cashed in your pension fully, it is a strong likelihood, if not a certainty that eventually you will have to pay 55% of that pension back to the HMRC. No matter what you have done with the cash, where you are in the world, or how old you are


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## Suenneil (Feb 17, 2009)

UKMarbella2009 said:


> Blimey, it's difficult to explain to people
> 
> QROPS is designed to replicate a UK pension, NOT allow cash release. So the HMRC government are clamping down on jurisdictions that have done so
> 
> ...


Hi

If what you are saying is true (and trust me Im not suggesting you are telling lies! lol) then its very very worrying for people that may have gone ahead and released money ..... if this is the case then wouldnt the individuals be able to get some redress for bad advice ? incorrect or misleading advice ?

Sue lane:


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## UKMarbella2009 (Sep 24, 2009)

Suenneil said:


> Hi
> 
> If what you are saying is true (and trust me Im not suggesting you are telling lies! lol) then its very very worrying for people that may have gone ahead and released money ..... if this is the case then wouldnt the individuals be able to get some redress for bad advice ? incorrect or misleading advice ?
> 
> Sue lane:



Don't belive me I'm an innocent poster

Speak to the HMRC, or a company selling QROPS qho are regulated by FSC or FSA

The ones flouting the rules are offshore brokers who are unregulated, or the regulation is so light it wouldn't apply to expats. There are 100's of them out there, in fact most offshore brokers are unregulated

I've been part of the team constructing a new QROPS in Guernsey. We have written to the HMRC with details off the QROPS schemes that are flouting the rules.


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## UKMarbella2009 (Sep 24, 2009)

I meant don't believe me I'm just an 'anonymous' poster, like everyone else here


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## mrypg9 (Apr 26, 2008)

Brendanwest said:


> Yes indeed there are several companies advertising for this now. My wife and I both used the services of one such company based in Alhaurin El Grande a few months ago to cash in both our UK private pension funds.
> 
> Without going in to too many details, the process basically involved transferring our UK SIPPS to an offshore SIPP account (as everyone is legally entitled to do). It took 7 weeks for my pension to go through the lengthy legal process, and 9 weeks for my wife's fund.
> 
> ...


We have a SIPP as well as other investments and are doing what you have done. We have already taken the maximum chunk permitted to date and reinvested here in Spain with a very reputable Spanish bank at a rate almost four times that we were receiving from the UK. Our fund manager has also reinvested chunks in UK institutions which are offering more attractive returns. 
I have my doubts as to whether interest rates in Spain will remain at the current level for long, though, so we are keeping our options open. We are fortunately not reliant on the SIPP as our only source of future income as we both have other sources, although as these are paid in sterling, their value has depreciated by over 25% during the last year.
Our SIPP was accrued from the proceeds of the sales of commercial properties: sales which by sheer luck were concluded before the crisis took hold..
There is a God
ADDENDUM:
I have just read the previous posts which weren't visible as I was writing and I must say we did not go the QROPS route. I am sure that what has been written about QROPS is correct. We were advised this was the case by our Offshore Bank. As someone said, what seems too good to be true usually is. There are very strict rules governing SIPPS as anyone with such a scheme has benefited from generous tax relief from HMG.
FURTHER ADDENDUM: So we haven't done exactly what you have done, Brendan, as SIPPS and QROPS don't mix. We have maximised the possibilities within the rules of the SIPP., having taken advice from the fund manager.


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## mrypg9 (Apr 26, 2008)

Suenneil said:


> Hi
> 
> If what you are saying is true (and trust me Im not suggesting you are telling lies! lol) then its very very worrying for people that may have gone ahead and released money ..... if this is the case then wouldnt the individuals be able to get some redress for bad advice ? incorrect or misleading advice ?
> 
> Sue lane:


The answer to that will be No, Sue. These brokers will not be bound by any UK regulatory institutions.
SIPPS have many advantages: for example, as our commercial properties were owned by our SIPP, we were exempt from tax on the sales.
But the disadvantage (if you see it as such) is that you don't have the freedom you have with an 'ordinary' pension pot.
It's really important to get good impartial advice on matters such as this and not to be lured by what seems a sure way to realise your assets into cash.


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## lakelander (Mar 31, 2009)

I've missed this thread for a while and have only just caught up on it again.

Firstly as a fellow UK Financial Adviser I agree 100% with everything UKMarbella2009 has said. There is nothing wrong with SIPPS or indeed QROPS from a reputable company but if someone tells you that they can transfer your UK pension to a QROPS and allow you to take it all in cash then they are breaking the law.

Not only will they charge you quite a hefty commission but as has already been said if the HMRC find out they will chase you for the tax on it.


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## Suenneil (Feb 17, 2009)

lakelander said:


> I've missed this thread for a while and have only just caught up on it again.
> 
> Firstly as a fellow UK Financial Adviser I agree 100% with everything UKMarbella2009 has said. There is nothing wrong with SIPPS or indeed QROPS from a reputable company but if someone tells you that they can transfer your UK pension to a QROPS and allow you to take it all in cash then they are breaking the law.
> 
> Not only will they charge you quite a hefty commission but as has already been said if the HMRC find out they will chase you for the tax on it.


Hi ans thanks for that ,... I think its so important that people take proper advice where any finances are concerned and this one is a worry isnt it !?!?!?!?! and for some people the advice and information may well have come too late 

Sue :ranger:


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## mrypg9 (Apr 26, 2008)

But there are important differences between a SIPP and a stakeholder or personal pension which have implications for what you can do when it matures and for most ordinary rate taxpayers the advantages aren't so great -although a discount of 20% on a property worth £500000 isn't to be sniffed at!! For higher rate tax payers i.e. most business people the advantages are vconsiderable - which is why you cannot do what you like with them. After all, if you are getting a tax discount worth £200000 on such a property you can't expect to have your cake and eat it.
I think that a lot of people didn't read the small print or didn't get thorough advice from their accountant or whoever when they decided on a SIPP rather than another form of pension. If I remember rightly, setting up this kind of pension is quite complex -you need trustees and all this costs money. 
SIPPS are IMHO best suited to people in business or who own assets - rented property for example -and who are not totally reliant on their SIPP for their retirement income.


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## lakelander (Mar 31, 2009)

mrypg9 said:


> But there are important differences between a SIPP and a stakeholder or personal pension which have implications for what you can do when it matures and for most ordinary rate taxpayers the advantages aren't so great -although a discount of 20% on a property worth £500000 isn't to be sniffed at!! For higher rate tax payers i.e. most business people the advantages are vconsiderable - which is why you cannot do what you like with them. After all, if you are getting a tax discount worth £200000 on such a property you can't expect to have your cake and eat it.
> I think that a lot of people didn't read the small print or didn't get thorough advice from their accountant or whoever when they decided on a SIPP rather than another form of pension. If I remember rightly, setting up this kind of pension is quite complex -you need trustees and all this costs money.
> SIPPS are IMHO best suited to people in business or who own assets - rented property for example -and who are not totally reliant on their SIPP for their retirement income.



I do agree with you to a certain extent. SIPPS do tend to be for the more sophisticated investor and the charges are a bit higher than a normal stakeholder or personal pension.

However, it does depend on the provider you go with. For example the Standard Life SIPP is basically a personal pension with personal pension charges until you decide you want to use investments outside the standard company portfolio i.e external funds or commercial property. For most people this will not be an issue.

The most important thing is get advice from an IFA and if you are not sure, question, question, question. Any reputable adviser will be happy to answer your questions and will be keen to ensure that you know exactly what you are getting into.

ps. _I have used Standard Life simply as an example. It does not imply that I think their product is the best on the market or that I have anything against other companies products. _


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## GQL (Nov 13, 2009)

lakelander said:


> I've missed this thread for a while and have only just caught up on it again.
> 
> Firstly as a fellow UK Financial Adviser I agree 100% with everything UKMarbella2009 has said. There is nothing wrong with SIPPS or indeed QROPS from a reputable company but if someone tells you that they can transfer your UK pension to a QROPS and allow you to take it all in cash then they are breaking the law.
> 
> Not only will they charge you quite a hefty commission but as has already been said if the HMRC find out they will chase you for the tax on it.


I have just come across this thread, I am an adviser at a firm of UK regulated independent financial advisers. 

I have read with interest some of the threads on this forum and there does seem to be a misunderstanding regarding what benefits are available from QROPS, particularly regarding the payment of tax free cash.

Whereas I agree that there are strict guidelines, set out in HMRC’s registered pension scheme manual (RSPM) as to the payment of benefits (such as income and lump sum payments) from a QROPS, within 5 complete UK tax years of the pension member's overseas residency, the benefits payable after this period depends on other factors such as the capabilities of the scheme in the jurisdiction and the basis on which their QROPS meet both the main and Primary Conditions (set out in the HMRC RSPM and in the relevant Statutory Instrument).
QROPS in Australia, for example, will legitimately allow 100% lump sum payment to be made to members at retirement (providing the member is outside the 5 year reporting period), because their pensions schemes (known as superannuation schemes) are set up for Australians on that basis and have worked this way for many years.

Australian superannuation schemes, as regulated schemes in their own jurisdiction, meet certain conditions with the UK’s HMRC for becoming QROPS, that other jurisdictions do not meet therefore allowing 100% tax free cash.


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## pjescot (Jan 28, 2011)

smithy45 said:


> I have seen several companies advertising in the english free papers, sur in english, Euro Weekly etc claiming that they can release your UK private pension.
> 
> This got my attention because I have a UK private pension fund, and I dont know if anyone has been keeping up with current affairs but pension funds are really in big trouble with the financial collapse and forecast to plummet further.
> 
> ...


hi i was interested to know if you used that company to release cash from your pension an were dey any good could you send me da details


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## mrypg9 (Apr 26, 2008)

pjescot said:


> hi i was interested to know if you used that company to release cash from your pension an were dey any good could you send me da details


Have you not read the posts from UK Marbella?


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## djfwells (Sep 28, 2009)

Whichever company you decide upon to obtain a proposal for releasing your private UK pension PLEASE confirm that A) They are experienced with the legalities concerning UK pension schemes and B) That they are approved by all of the appropriate regulatory bodies.
The Pensions industry has received a lot of bad press of late for poorly provided financial advice that has resulted in the client receiving unexpected fees, taxes and charges and ultimately receiving a lot less than they expected.


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## Nignoy (Jun 4, 2010)

many major offshore banks perform this service for free, Suncorp metway did it for us in Aus when we first emigrated


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## benhunt (Mar 16, 2012)

*Don't go there*

It is actually illegal to release funds from your pension under the age of 55.

Whilst there are a lot of companies advertising that you can do it, it's you that bears the risk. One consideration is that HMRC has given you tax relief on your pension contributions, on the understanding that you can't retrieve the cash under 55, so if you go ahead, expect a big bill from the tax man.


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## snikpoh (Nov 19, 2007)

benhunt said:


> It is actually illegal to release funds from your pension under the age of 55.
> 
> Whilst there are a lot of companies advertising that you can do it, it's you that bears the risk. One consideration is that HMRC has given you tax relief on your pension contributions, on the understanding that you can't retrieve the cash under 55, so if you go ahead, expect a big bill from the tax man.


When the last post was written (Jan 2011), this was NOT the case. Then the age was only 50.

Yep, it rose to 55 last April.


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## mrypg9 (Apr 26, 2008)

snikpoh said:


> When the last post was written (Jan 2011), this was NOT the case. Then the age was only 50.
> 
> Yep, it rose to 55 last April.


Quite right. OH was under 55 when she retired and drew income from her pension fund.

There are an awful lot of sharks around who are not licensed and who peddle dodgy deals to immigrants.

I remember some poor soul posting here a couple of years ago....he had paid 15% of his pension pot to a 'financial advisor' based in Alhaurin for release of a SIPP.

A forum member who was working on behalf of HMRC closing the loophole jurisdictions which allow such cashing in pointed out he could expect a hefty bill from the taxman...


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## ruefguet (Dec 8, 2011)

mrypg9 said:


> Quite right. OH was under 55 when she retired and drew income from her pension fund.
> 
> There are an awful lot of sharks around who are not licensed and who peddle dodgy deals to immigrants.
> 
> ...


I am 53 years old and am currently in the process of transferring my UK pension fund out of the UK under the QROPS scheme.
To ensure I am out of any future UK tax net I am not allowed to touch the fund for 5 years. The company I am using abroad has to be approved by HMRC with a QROPS number other wise the UK fund-holder will not be able to transfer it. There is no cost involved in the transfer except for some legal paperwork cost in the UK but this may be specific to where you hold your pension fund. You will have costs with the companies you may transfer the funds to but this should not normally exceed 1% of the fund annually which was the same as I was paying in the UK. The country that you transfer your fund to may have some specific rules about how you withdraw your fund once you are out of the UK tax net. The HMRC website offers a lot of information but be very careful of anyone who wants a sizeable chunk of your fund for handling this.


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## stevec2x (Mar 24, 2012)

snikpoh said:


> When the last post was written (Jan 2011), this was NOT the case. Then the age was only 50.
> 
> Yep, it rose to 55 last April.


Contrary to common belief - it MAY still be possible to access your pension at 50 - I know, because I've just helped my OH to do it! You CAN access at 50 if your doctor will sign a form saying something like 'you are no longer capable of working in your customary profession' (I can't remember the precise words - but your pension provider will send you the form if you ask them).

In our case, she has been type 1 diabetic for 30 years and has had several operations to retain her eyesight - essential to work in accounts - but she could have problems again tomorrow (god forbid). Also, she is hard of hearing - the last time she talked to the doctor about this he was staggered that she was managing to get by without using her hearing-aids! The eyesight problem meant that she has been claiming incapacity benefit for a couple of years - this made it easy for the doctor to sign the necessary pension-release form.

After that, it was just a matter of selecting an annuity and taking the 25% lump sum. It's just a shame that annuities are at their lowest rate since the days of Samuel Pepys!!!

Hope this is useful to somebody

Cheers


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## mrypg9 (Apr 26, 2008)

ruefguet said:


> I am 53 years old and am currently in the process of transferring my UK pension fund out of the UK under the QROPS scheme.
> To ensure I am out of any future UK tax net I am not allowed to touch the fund for 5 years. The company I am using abroad has to be approved by HMRC with a QROPS number other wise the UK fund-holder will not be able to transfer it. There is no cost involved in the transfer except for some legal paperwork cost in the UK but this may be specific to where you hold your pension fund. You will have costs with the companies you may transfer the funds to but this should not normally exceed 1% of the fund annually which was the same as I was paying in the UK. The country that you transfer your fund to may have some specific rules about how you withdraw your fund once you are out of the UK tax net. The HMRC website offers a lot of information but be very careful of anyone who wants a sizeable chunk of your fund for handling this.


My point precisely. Beware of sharks!


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## snikpoh (Nov 19, 2007)

ruefguet said:


> I am 53 years old and am currently in the process of transferring my UK pension fund out of the UK under the QROPS scheme.
> To ensure I am out of any future UK tax net I am not allowed to touch the fund for 5 years. The company I am using abroad has to be approved by HMRC with a QROPS number other wise the UK fund-holder will not be able to transfer it. There is no cost involved in the transfer except for some legal paperwork cost in the UK but this may be specific to where you hold your pension fund. You will have costs with the companies you may transfer the funds to but this should not normally exceed 1% of the fund annually which was the same as I was paying in the UK. The country that you transfer your fund to may have some specific rules about how you withdraw your fund once you are out of the UK tax net. The HMRC website offers a lot of information but be very careful of anyone who wants a sizeable chunk of your fund for handling this.



I think you'll find that you have to be a non-UK tax resident for 5 years (ie. tax resident else where) and not that you can't touch it for 5 years.

Obviously, if you're only just leaving the UK, then these two facts are one and the same.


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## ruefguet (Dec 8, 2011)

snikpoh said:


> I think you'll find that you have to be a non-UK tax resident for 5 years (ie. tax resident else where) and not that you can't touch it for 5 years.
> 
> Obviously, if you're only just leaving the UK, then these two facts are one and the same.


I left the UK 13 years ago and now having made the decision not to return I decided to transfer my fund. On this basis I was advised I cannot touch it for 5 years.


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## snikpoh (Nov 19, 2007)

ruefguet said:


> I left the UK 13 years ago and now having made the decision not to return I decided to transfer my fund. On this basis I was advised I cannot touch it for 5 years.


I think that you'll find this to be incorrect (but I may be wrong) - take advice from someone else.


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## ruefguet (Dec 8, 2011)

snikpoh said:


> I think that you'll find this to be incorrect (but I may be wrong) - take advice from someone else.


I will double check, I was initially advised 10 years and this was then revised to 5 years. But I will check again.


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