getting UK private pension when retiring in Italy

max888

Hi,

I am considering retiring to Italy in long term.
By that time, I'd expect the only sources of income would be a pension from a SIPP, interests on savings and UK state pension (so no other work income).
I'd rule out transferring to an Italian pension fund since there are not QROPS funds in Italy and the transfer would be highly taxed by Italian government.
However I am not sure I could find a reputable UK pension provider who could pay a pension to a resident in Italy.
In fact I read that most providers won't pay to foreign bank accounts (or maybe even to non UK resident). If they still accept a UK bank account, there would be the hassle of finding and managing a bank for non UK residents.
Are there reputable companies providing pension funds for residents abroad (in EU)?
Anyone has experience with this situation? any recommendation?

Thanks

Marcon

max888 said:

Hi,

I am considering retiring to Italy in long term.
By that time, I'd expect the only sources of income would be a pension from a SIPP, interests on savings and UK state pension (so no other work income).
I'd rule out transferring to an Italian pension fund since there are not QROPS funds in Italy and the transfer would be highly taxed by Italian government.
However I am not sure I could find a reputable UK pension provider who could pay a pension to a resident in Italy.
In fact I read that most providers won't pay to foreign bank accounts (or maybe even to non UK resident). If they still accept a UK bank account, there would be the hassle of finding and managing a bank for non UK residents.
Are there reputable companies providing pension funds for residents abroad (in EU)?
Anyone has experience with this situation? any recommendation?

Thanks

Have you contacted your current SIPP provider and asked what they do, rather than what 'most providers' will or won't do? That would seem the logical starting point. If they do what you (may) require, you need look no further.

max888

Marcon said:

Have you contacted your current SIPP provider and asked what they do, rather than what 'most providers' will or won't do? That would seem the logical starting point. If they do what you (may) require, you need look no further.

My provider is Vanguard UK. And their service is for UK residents only, according to their website.
Also they do not offer annuities (but they offer draw back).
So I am using it to grow my pot on a low fee.
My retirement is in many years, but I want to understand if investing in a UK pension is a good choice, if I will decide to retire abroad

Marcon

max888 said:

Marcon said:

Have you contacted your current SIPP provider and asked what they do, rather than what 'most providers' will or won't do? That would seem the logical starting point. If they do what you (may) require, you need look no further.

My provider is Vanguard UK. And their service is for UK residents only, according to their website.
Also they do not offer annuities (but they offer draw back).
So I am using it to grow my pot on a low fee.
My retirement is in many years, but I want to understand if investing in a UK pension is a good choice, if I will decide to retire abroad

I think I like 'draw back' more than 'drawdown'!

If your retirement is many years away, nobody can predict what the world will look like then. Who would have thought five years ago that Britain would leave the EU?

Investing in a UK pension, with the associated tax breaks, is likely to be the best option for saving for your retirement. Other possibilities are there, but far more limited, especially in terms of tax privileged treatment. Hopefully one of the IFAs who answer questions on this board can offer something more constructive than that rather vague observation.

eskbanker

Marcon said:
Who would have thought five years ago that Britain would leave the EU?

Anyone who'd paid any attention to current affairs, via TV news, newspaper or equivalent websites, or a conversation with pretty much anyone, over the five months between the referendum and five years ago?

bostonerimus

UK providers usually let you keep the SIPP account, but you can't add to it. Will they do drawdown and deposit the money into a Wise GBP account?

Dead_keen

max888 said:

My provider is Vanguard UK. And their service is for UK residents only, according to their website.

I think it may be more nuanced than that. If you are overseas, you can't make new pension contributions but I understand that you can still change investments, reinvest cash and withdraw money.  The money has to be paid to a UK bank account and you need to retain a UK phone number (for security check reasons).

[Deleted User]

Vanguard do allow you to draw whilst living abroad but from memory, only sell, not buy (so you cannot transfer into other funds)

HL do allow you to do everything you want, however you will need to send them proof of your address in Italy, signed and certified by an official.

Send to a UK bank account then transfer over periodically

Albermarle

I think I read in another thread that it is a good idea to take the tax free cash whilst still resident in UK , as your new country may not recognise it as tax free. You would need to check that with someone more expert though.

Thrugelmir

An understanding of Italian tax legislation needs to be a priority. 

[Deleted User]

Albermarle said:

I think I read in another thread that it is a good idea to take the tax free cash whilst still resident in UK , as your new country may not recognise it as tax free. You would need to check that with someone more expert though.

Correct (for Spain) as I did exactly that, and also sold my house whilst still UK tax resident, otherwise the Spanish tax man will have some of the CGT proceeds if not all reinvested within two years

I for one would check the double taxation agreement - 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/498371/italy-dtc_-_in_force.pdf