Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Voyager2002
    • By Voyager2002 10th Oct 16, 12:49 PM
    • 11,015Posts
    • 7,368Thanks
    Voyager2002
    Transfer questions
    • #1
    • 10th Oct 16, 12:49 PM
    Transfer questions 10th Oct 16 at 12:49 PM
    I have a couple of questions: then I shall give the background so if anyone who has the time to read it, they could please let me know if my thinking is sensible.

    Do any or even most Stakeholder Pension schemes allow transfers out to an overseas scheme that is NOT a QROPS? If so, is there an easy way to find schemes that would do this at lowest cost?

    The reasons: I have a small pension pot (worth about £6,000) with the Civil Service pension scheme, and because of my short service there I have to transfer it to another scheme or simply accept a refund of contributions. I have deferred pension benefits with an overseas scheme relating to my former work with a public-sector international organisation: this scheme would accept an inward transfer but since it is not a QROPS the Civil Service would not release funds for a transfer to it. So I would like to open a low-cost Stakeholder scheme; transfer the pension pot to it and then transfer on to the overseas scheme, and to do this at lowest cost.

    However, for such a small sum I wonder whether there would actually be any measurable benefit from transferring it to my preferred scheme, as opposed to simply leaving it in a stakeholder scheme: obviously the transfer is going to involve some expense and some trouble. At the moment I am not in a position to make further pension contribution but tax is not an issue: my income is lower than my personal allowance.

    Any thoughts would be appreciated, thank you.
Page 1
    • HappyHarry
    • By HappyHarry 10th Oct 16, 1:11 PM
    • 215 Posts
    • 206 Thanks
    HappyHarry
    • #2
    • 10th Oct 16, 1:11 PM
    • #2
    • 10th Oct 16, 1:11 PM
    Do any or even most Stakeholder Pension schemes allow transfers out to an overseas scheme that is NOT a QROPS?
    No. That would be an unauthorised payment, the penalties for which are horrific.


    So I would like to open a low-cost Stakeholder scheme
    Stakeholder pensions are an old product. You may find that personal pensions can be less expensive.

    If you have a civil service pension, does this imply that you have been working in the UK? If so, and you intend to retire in the UK, moving the funds to a QROPS may not be an appropriate move.
    I am an Independent Financial Adviser. Any comments I make here are intended for information / discussion only. Nothing I post here should be construed as advice. If you are looking for individual financial advice, please contact a local Independent Financial Adviser.
    • Voyager2002
    • By Voyager2002 10th Oct 16, 3:06 PM
    • 11,015 Posts
    • 7,368 Thanks
    Voyager2002
    • #3
    • 10th Oct 16, 3:06 PM
    • #3
    • 10th Oct 16, 3:06 PM
    If you have a civil service pension, does this imply that you have been working in the UK? If so, and you intend to retire in the UK, moving the funds to a QROPS may not be an appropriate move.
    Originally posted by HappyHarry
    Yes: I am British and am currently in England. As it happens I do have deferred benefits with two other UK schemes (USS and local government), neither of which will accept a transfer in since I am not currently employed in the sector. The overseas scheme is designed for international public servants and so can pay a pension anywhere in the world, whether the UK or Burkina Faso. It accepts inward transfers from other other pension schemes (although I cannot pay cash into it); and its rules mean that it would be eligible to be treated as a QROPS. However, the administrators do not wish to register it as a QROPS.

    So the sensible way forward would be to set up a personal pension and transfer in the civil service pot: although I would imagine that the pension that this would eventually produce would be trivial.

    Anyway, thank you for your thoughts.
    • Kynthia
    • By Kynthia 10th Oct 16, 8:34 PM
    • 4,695 Posts
    • 6,710 Thanks
    Kynthia
    • #4
    • 10th Oct 16, 8:34 PM
    • #4
    • 10th Oct 16, 8:34 PM
    If you transfer it to a personal pension you will have the possibility to transfer it to another pension, perhaps with another employer in the future.
    Don't listen to me, I'm no expert!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,396Posts Today

6,726Users online

Martin's Twitter