Retirement in France

Tenez

I have 2 private pensions fund with 2 different uk companies (I am not sure I can mention them here) which I contributed to while working in the UK from 1995 to 2017. 

I moved to France in 2018 and I received a letter from both pensions saying that I was not allowed flexible drawdowns because I live in France now. So apparently, I either have the option to withdraw everything at once (with all the heavy taxes it bears) or leave it in the pension company as is. So no possibility to annuities, flexible yearly withdrawings,, etc.....

Is that something people are aware of here? and is that the case for all pension companies, if I move the funds to a different UK company as I wish my money to remain in the uk?

Many thanks for replies. 

George 

xylophone

https://www.harrisonbrook.co.uk/withdrawing-uk-pension-in-france/

Does the above assist?

Tenez

It does! Many thanks. 

DBdoobydoo

This is the first that I have ever heard of this. I have a SIPP with Hargreaves Lansdown. I took my 25% PCLS while UK tax resident but am now tax resident in France. I was planning to flexibly drawdown from the SIPP over the years of my retirement. I have an NT tax code so  pay no tax in the UK but will be taxed in France. AFAIK there is no bar to me doing this. Why should there be? It's my money.

QrizB

DBdoobydoo said:

Why should there be? It's my money.

With the UK no longer being part of the EU the "four freedoms" no longer apply:

• Free movement of goods
• Free movement of capital
• Freedom to establish and provide services
• Free movement of persons

Without the freedom to provide cross-border services, and with the UK and EU having failed to agree passporting rights for financial services, the ability of EU-based persons to access UK-based financial services has been curtailed.

Tenez

Thanks All for the info. From what I understood so far, looks like SIPPs allow you to get "flexible" access to your money. Currently my money is with personal and "group" pension plans (Aviva and Standard Life) and I my choice is only to leave everything in, or withdraw everything with the normal taxes it incurs (25% tax free and then full fledged taxes by withdrawing all at once.

Looks like I need to move the money to a SIPP. 

DBdoobydoo

QrizB said:

DBdoobydoo said:

Why should there be? It's my money.

With the UK no longer being part of the EU the "four freedoms" no longer apply:

• Free movement of goods
• Free movement of capital
• Freedom to establish and provide services
• Free movement of persons

Without the freedom to provide cross-border services, and with the UK and EU having failed to agree passporting rights for financial services, the ability of EU-based persons to access UK-based financial services has been curtailed.

Sorry but I don't see how this applies. My SIPP is just like a bank account that I draw money from. Apart from money laundering regulations there are no restrictions on transferring money between my UK bank account & French bank account so please can you explain why I cannot transfer money from my SIPP to my UK bank account & then to my French bank account?

DBdoobydoo

Tenez said:

Thanks All for the info. From what I understood so far, looks like SIPPs allow you to get "flexible" access to your money. Currently my money is with personal and "group" pension plans (Aviva and Standard Life) and I my choice is only to leave everything in, or withdraw everything with the normal taxes it incurs (25% tax free and then full fledged taxes by withdrawing all at once.

Looks like I need to move the money to a SIPP. 

If you are tax resident in France & totally liquidate your pension pot then you only pay 7.5% income tax https://www.french-property.com/guides/france/finance-taxation/taxation/liability-income-tax/income

xylophone

I have a SIPP with Hargreaves Lansdown. I took my 25% PCLS while UK tax resident but am now tax resident in France. I was planning to flexibly drawdown from the SIPP over the years of my retirement. 

Your situation seems to be different from that of the OP in that you had already accessed your pension before you became non resident.

Presumably you advised HL of your change of residence - what  specific guidance have they provided in respect of future drawdown?

https://www.hl.co.uk/features/brexit-faqs

dunstonh

Is that something people are aware of here? 

Yes.  There have been several threads.

? and is that the case for all pension companies, if I move the funds to a different UK company as I wish my money to remain in the uk?

You are not allowed to move the pension to another UK company.

The UK is no longer part of the single market and whilst the UK granted European firms permissions to continue operating within the UK, the EU has refused to replicate and banned UK firms from offering financial services to EU customers unless the UK firm sets up an office within an EU country and the applies for passporting permissions (which allow it to retail to all EU countries). or alternatively, set up an office in each of the EU27.

You need to contact your MEP and persuade them that punishing the UK for leaving the EU is also punishing normal EU residents and consumers and doing nobody any favours.  The EU is cutting off its nose to spite its face just because it wants the UK to suffer.

Tenez

Thanks for the info Dun! I am certainly not a pro EU and not surprised by their dirty pressure.