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You will have the
option in Canada at retirement of purchasing an annuity
( the only option you have in the UK ) or leaving your
funds to grow tax deferred in your RRSP (which would
convert to a RRIF at age 71 ) until you need to draw
some out.
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The frozen pension
transfer value can in most cases be transferred directly
into a regular Canadian RRSP. That is, not a locked-in
RRSP.
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If you were to die,
the full value of this regular Canadian RRSP could be
rolled over into your spouses RRSP with no tax
consequences. (Spousal Rollover).
If left in a UK pension scheme usually a maximum 50%
spousal pension is paid or in some cases all benefits
cease.
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You will have your
retirement funds right here in Canada where you are
going to retire. It makes sense for your pension funds
to be invested in the currency and geographic region you
are going to retire in.
-
You know exactly
where your past pension entitlements are.
-
There will be no risk
of your UK pension being forgotten and rights to your
entitlement overlooked by you or your loved ones.
-
There will also be no
risk of your pension entitlement potentially being lost,
if your UK pension scheme was to be wound up for any
reason.
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See this link for
some of the sad occurrences that can happen when pension
schemes have to be wound up:
http://www.cookham.com/community/equitable/finalsalaryg.htm.
