Moved to EU - what can I do with my pension fund?

brunovski · 23 January 2019 at 1:44PM

Hello

Oh, mighty MSE board! Bless me with your wisdom and guide me through various pension-related queries :A

I am an EU national who worked in the UK from 1997 through to 2011 and then moved to Asia till 2018. I have been living in Portugal from last year and am now trying to sort out various bits and pieces relating to my pension funds in the UK.

According to HMRC I have accumulated:
- 15 years of full contributions
- 8 years when I did not contribute enough (between jobs, moved abroad, did MBA so only partial year etc)
- A state pension forecast of c. 160 GBP p/w if I contribute for another 19 years, 76 GBP p/w based on current contributions

I also have 2 pension pots with c. 115k GBP accumulated through a workplace and a private pension scheme.

Personal details: normal pension age is some way off (2039) and I am looking to retire outside the UK.

My questions:
1) Given I will be based in Portugal for the foreseeable future should I make the missing contributions to the state pension to keep them up to date or move this state pension to Portugal?
2) I want to move the 2 other pension pots to Portugal. I'm a bit worried returns will be lower but nevertheless, should this still be done under a QROPS?
3) Due to the size of the pension built up, I think I have to, by law, receive advice from a financial adviser before any transfer takes place. Where would be the best place to find an IFA that would specialise in these types of transfers?

Thanks!

Aegis · 23 January 2019 at 4:40PM

brunovski wrote: »

My questions:
1) Given I will be based in Portugal for the foreseeable future should I make the missing contributions to the state pension to keep them up to date or move this state pension to Portugal?

Unless I'm very much mistaken, you can't move the state pension to Portugal. You can make the additional contributions, and it is usually worthwhile for UK residents, but you may wish to wait and see what happens with Brexit in case the state pension's inflation link is removed due to us no longer being in Europe.

2) I want to move the 2 other pension pots to Portugal. I'm a bit worried returns will be lower but nevertheless, should this still be done under a QROPS?

Almost never. This is an expensive and usually unnecessary step, especially since the UK double tax treaty currently cedes tax authority on UK pensions to Portugal for Portuguese residents (assuming no dual-residency issues). It also opens your pension up to some truly horrific borderline scams by "advisers" in jurisdictions that aren't as well-regulated as the UK.

3) Due to the size of the pension built up, I think I have to, by law, receive advice from a financial adviser before any transfer takes place. Where would be the best place to find an IFA that would specialise in these types of transfers?

This is only true if you have safeguarded benefits. If you just have money purchase pensions without guarantees, there's no need to take advice.

InMaHeart · 18 February 2019 at 2:51PM

Hi Brunovski

I too am a EU national and i have been and worked in UK for over 30 years. My idea is also to retire aborad, in Spain, and get the UK SP which i am entitled to. I have contacted HMR&C and i had a quotation OK plus i have a couple of private pensions too. So all OK till here

My doubt is how to deal with this as i will be getting my money from UK in sterling and need access to it in euros, so i was thinking maybe to register from an online bank so not to pay transfer for the money?

Not sure how to deal with this so any ideas from you experts?

Thanks in advance

bostonerimus · 18 February 2019 at 4:49PM

You can't move a state pension and QROPS are almost always best avoided.

The state pension can be paid overseas and it is usually only taxable where you are tax resident.....check the specific treaty.

Before you leave the UK check with your private pension administrators how you will access the pension. Make sure they are set up for you to have a foreign address. Paying pensions across borders should not be difficult, but many pension providers have internal CYA rules and make things harder than they should be.

Moved to EU - what can I do with my pension fund?

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