Can I take lump sum if emigrating

gibbos1

Hi all,

we are in the process of emigrating to Canada, hopefully just after Christmas.

I have been working with a car factory for nearly 20 years and have been wondering if there is anyway I could take a lump some out of company pension and put it into a new one over in Canada, or will it be frozen until I'm 65.
If it is possible, would it be possible to use some of the lump sum to put aside and use as a down payment on a new property in Canada and the remainder back into new scheme?

Many thanks, hope some one can advise.
regards:o

MikeJones_2

Hi gibbos1,

If you draw your pension before you emigrate, this will depend upon your Scheme Rules which will usually specify the earliest age at which you would be allowed to draw your pension benefit. There is no legal requirement that a defined benefit scheme (which is what I am assuming you were a member of) has to provide for early payment.

Except for early retirement on the grounds of ill-health, early payment before age 50 is not possible (other than for a few pension schemes which have prior agreement with HMRC). The minimum age HMRC will allow pension schemes to provide benefits (other than on ill-health) will rise to age 55 in 2010.

Many schemes that provide early payment, do so from a specific age (e.g. 50, 55, 60).

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.

EdInvestor

It may be possible to transfer your pension to a suitable scheme in Canada under the QROPS scheme. Speak to the Revenue for more details.

http://www.hmrc.gov.uk/PENSIONSCHEMES/qrops-list.htm

gibbos1

ahhh many thanks, will have a look into it.

Thanks again

Cook_County

You will doubtless want to transfer to a QROPS to avoid the FIE rules; do also consider an immigrant trust to minimise Revenue Canada's opportunities to tax you.

gibbos1

Hi , many thanks for all this advice, much appreciated.

A friend has advice me that because my pension is final salary, it's best to keep it where it is, what do you think please?

Thanks for the help,

Andy_L

gibbos1 wrote: »

A friend has advice me that because my pension is final salary, it's best to keep it where it is, what do you think please?

It depends on the transfer amount offered & your tax situation in Canada

Cook_County

You need to watch the FIE rules in Canada. Take advice locally there.

gibbos1

I'm in the process of getting some advice from a fella that works with pensions, shares etc.

Do I need to ask this end. I think the HSBC hold them or are looking after them at the moment.

Also the company I work for is looking into buying our pensions off us, is this possible?

many thanks for the advice and help so far.
regards