Retirement in France

Albermarle

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. 

Just reading your older post above.
Some personal and group pensions with the likes of Aviva and SL, do offer flexible drawdown . The issue usually is that it is not available with older pensions and you have to transfer it to a new pension, either with the existing provider or a new one.

SomeMadeUpName

DBdoobydoo said:

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

What about social charges though?

DBdoobydoo

SomeMadeUpName said:

DBdoobydoo said:

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

What about social charges though?

If you have a UK state pension & no French pension then the UK will be responsible for paying your healthcare in France by means of a form S1. With an S1 from the UK no social charges are payable. Details contained in the link that I provided.

Tenez

Hi returning to this subject, I am still unclear what I can and cannot do as my UK pensions still prevent me from flexible drawdowns. It looks like the best option for me is transferring the pots to a SIPP (though QrizB thinks I won;t be allowed). Any advise on the better ones?  Many thanks

MallyGirl

Tenez said:

Hi returning to this subject, I am still unclear what I can and cannot do as my UK pensions still prevent me from flexible drawdowns. It looks like the best option for me is transferring the pots to a SIPP (though QrizB thinks I won;t be allowed). Any advise on the better ones?  Many thanks

One of the first application questions will be are you a UK resident?

AFAIA you must be a UK resident to open a SIPP, although non-UK residents can hold one. 

Pat38493

dunstonh said:

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.

I was just looking at this thread as I might be interested in moving abroad when I retire - at least it's a possibility.

You appear to be suggesting that basically OP is stuffed and there is no way for them to get their hands on their money without incurring large tax liabilities.

However - what about the article linked earlier in the thread - for example it suggests that the French resident could open an "international SIPP" and transfer the money in there, or something called a QROPS 

dunstonh

You appear to be suggesting that basically OP is stuffed and there is no way for them to get their hands on their money without incurring large tax liabilities.

There are firms that deal with ex-pats.  However, they are typically expensive and offer their own-brand product which is usually not that great.

I was just looking at this thread as I might be interested in moving abroad when I retire - at least it's a possibility.

UK and EU officials may well have got past the stupid uncooperative stage by that time.  However, to avoid any issues, just move it to a whole of market platform that supports all options whilst you are a UK resident.    Get your UK bank account validated before you leave and don't close that bank account.  Then you avoid any problems.

However - what about the article linked earlier in the thread - for example it suggests that the French resident could open an "international SIPP" and transfer the money in there, or something called a QROPS 

Expensive and may result in a better/worse outcome than an expat firm.

Tassie_Devil

Tenez said:

Hi returning to this subject, I am still unclear what I can and cannot do as my UK pensions still prevent me from flexible drawdowns. It looks like the best option for me is transferring the pots to a SIPP (though QrizB thinks I won;t be allowed). Any advise on the better ones?  Many thanks

A J Bell/youinvest will let you open a SIPP and transfer an existing pension into it. I live in Australia and recently did just that.

https://www.youinvest.co.uk/faq/am-i-eligible-sipp

My pension is not in drawdown, but to do so a requirement seems to be having a UK bank account (see s5.1 in linked article). Maybe an account with somebody like Wise that gives you a UK sort code and account number would work if you don't already have such a thing.

https://www.youinvest.co.uk/sites/default/files/useful-forms/AJBYI_SIPP_Guide_to_accessing_your_pension.pdf

Tenez

Thanks again. I still have a UK bank account. Will give it a try. 

dshart

Tenez said:

Hi returning to this subject, I am still unclear what I can and cannot do as my UK pensions still prevent me from flexible drawdowns. It looks like the best option for me is transferring the pots to a SIPP (though QrizB thinks I won;t be allowed). Any advise on the better ones?  Many thanks

I am not sure why you cannot take drawdown from your pensions if you are over 55. Also if you are no longer resident in the UK why are you reluctant to move your pension out of the UK?

I recently moved to France and moved my pension to a HMRC compliant QROPS in Malta where my pot now remains invested much the same as it was in the UK and I am allowed to take drawdown as I want.

The only thing you have to watch is your tax free lump sum as that is not classes as completely tax free in France and you will have to pay around 7.5% social charges on it. So you need to take your 25% lump sum prior to becoming resident in France.

The other option that someone mentioned is taking all your pension pot in the UK and only paying the 7.5% social charges in France and if you are non-resident in UK there is no UK tax liable. Not completely sure how it works but many advisors can advise you on the possibility of this. 

But the best advice would be to seek professional advice from a professional. It may cost a bit but could save you money in the long run.