Clueless on pensions

Deanbark

I will be 60 in a few months and my private pension will start paying out. I live in the UK 20% and Germany 80%  and will probably retire in Germany. My plan was to just pay my private pension into my UK bank account but I keep getting bombarded by companies on social media trying to sell me financial packages regarding my pension stating tax advantages. I am wary of such promises. Is there any advantage in speaking to a financial advisor? Can I get my pension paid into my German bank account and if so are there any disadvantages to my UK bank account? 

penners324

Wouldn't touch those adverts with a very long barge pole

Deanbark

Hi Penners, on those adverts, my thoughts exactly they are borderline criminal activity.

Suhusa

It's unlikely to get a workplace or private pension paid to an overseas account. You might want to look into opening a Wise account if you don't have one yet because they usually offer a lot better exchange rates than banks.

If you want to be independent of the exchange rate you may possibly be able to transfer your pot to a Basisrente-based annuity/Sofortrente in Germany, but these are a lot less flexible than UK pensions (you can't take any lump sum) and last time I checked there were only two companies on the QROPS list that are open to the general public (the others are closed schemes for employees in specific companies or for members of specific professional institutions), so you'd be severely limited in your choice of annuities. So you'd have to have very good reasons for that.

As for tax if you're resident in Germany than according to the double taxation agreement state pensions are definitely taxes in Germany, and if I remember correctly, the same applies to workplace/private UK pensions. You can look the double taxation agreement up, it is fairly intelligible.

Rogerrabbit777

When my family members moved abroad their private pension provider would pay into a EU bank but would charge for the privilege.so they had it paid into a uk santander account as cash machine payouts at a santander machine in the country they moved to were free. 

Also be aware of tax declarations in your host country for your pension and getting it paid tax free in the uk in return Via the double tax HMRC form . Sorry already mentioned in the previous post

Brie

Suhusa said:

It's unlikely to get a workplace or private pension paid to an overseas account. You might want to look into opening a Wise account if you don't have one yet because they usually offer a lot better exchange rates than banks.

Not sure why you think it unlikely to get a pension paid to an overseas account.  Large companies tend to have ex employees all over the world and are quite used to paying them wherever is necessary.  

Agree about Wise - very cost effective.

Deanbark

Many thanks to all who have replied. Useful information.

RobM99

Speak to a pension expert, I'd suggest, not a FB ad'.    <--- trouble!