Benefits of Transferring Your Pension
What do You Gain?
Security
- You can transfer the value of any ‘Company Pension’ and ‘Personal Pension’ you left behind in the UK, directly into a ‘Regular Canadian RRSP’.
- You’ll have full control of your funds and won’t be forced to deal with your present pension provider half-way around the world.
- You won’t need to worry about your overseas pension company – is it healthy, merging, collapsing or disappearing altogether?
Stability for your Loved Ones
- Exchange rate fluctuations and transaction charges won’t erode your pension payouts when you retire (current charges on regular pension payments from Britain can be as high as £19.00 per payment).
- 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. If left in a UK pension scheme, usually a maximum 50% spousal pension is paid or in some cases, all benefits cease.
- Pension funds transferred to qualifying schemes exit the UK without a claw back of tax incentives gained whilst saving in the United Kingdom. This means you are not only transferring your physical savings and tax free gains, but the accumulated tax relief as well.
Accessibility
- The funds can be transferred directly into a regular Canadian RRSP.
There are many more benefits, and we can’t list them all because each case is unique. Taking the time to speak with Mike can help answer your questions.
UK Pension Transfers have become very difficult to deal with since transfers were made possible again in late 2019 but really effectively from January 2020. The main reason is that Pension Scams have become a real problem in the UK which has resulted in delays with the genuine transfers that we deal with. Our solution to this is to ensure we provide everything ceding UK pension companies need right at the outset. Our experience is really starting to pay off and transfer delay times are shrinking. Not rapidly but definitely shrinking.