At deVere Australia Group, we specialise in helping expatriates living overseas to develop and build their pension, offering peace of mind for when they are finally ready to transition into retirement. We take into account your desired quality of life and use this along with other factors to devise a plan to help make your retirement dream a reality.
The age of our clients typically ranges from 35-70, highlighting just how diverse our plans can be to cater for different generations. However, deVere assures you that the earlier you start thinking about pension planning, the easier it will be for you to make the required payments to ensure that you enjoy a stress free retirement.
As with all things important in your life, when it comes to planning for your financial future, you need to consult with a financial professional who is accredited and qualified to assist you on your journey.
When dealing with deVere Australia Group, you gain access to qualified advisers who have a global and local perspective, that are able to conduct a full financial analysis to seek out product solutions. Potential options will be based on your local needs, whilst also taking into consideration your UK pension that you may have left behind in the UK.
It is important to have an adviser who can understand your individual objectives, needs and requirements, with a focus always on your best interests so as to provide you with a financial plan to secure your future wealth.
There are various options locally in Australia via superannuation schemes, but there are also options available to house your overseas UK pensions including:
Superannuation is a tax effective way of saving for your retirement, however, contributions into a superannuation should come from your employer, not your salary. You are free to deposit extra money into your superannuation should you wish to top it up at any time. The money put into your superannuation account is invested by the fund on your behalf, and is yours to use when you retire. deVere Australia Group can advise you on the best way to build and make the most of your superannuation.
What is a SIPP?
A SIPP (Self-Invested Personal Pension) is a type of UK-government-approved personal pension scheme which allows clients and their financial adviser to choose from a wide range of investments that are approved by HM Revenue & Customs (HMRC). Therefore, a client can freely choose how their money is invested.
What are the benefits of a SIPP?
A SIPP gives you control of your pension, whereas most members of a company pension scheme have very little control and almost no idea where their pension money is invested. Indeed, there are many reasons why SIPPs are becoming increasingly popular. Some of the key features include:
A SIPP allows the individual along with their financial adviser to decide on the type of investments depending on their investment risk profile and timescale to retirement.
A wide range of investments are allowed, including stocks and shares, unit trusts, investment trusts, OEIC's, insurance company funds and even commercial property, allowing individuals to put business premises into the pension fund and the rental income.
SIPP trustee fees tend to be fairly low-cost on an annual basis, sometimes just a few hundred pounds per year. Access to funds and other collectives or shares is generally available via platforms or offshore life wrappers, allowing access to a whole range of assets at lower charges than individuals can achieve.
Many individuals have several small pensions that they often forget about or are not growing as they should. The National Association of Pension Funds and the Trades Union Congress believes that an average UK person changes jobs eleven times during their career. A SIPP can consolidate all these pensions into one allowing for easier management and better control.
Members of a SIPP can take income drawdown, meaning that an income can be taken from the fund (subject to certain limits) whilst leaving the remainder of the fund to grow in value. An annuity need not be purchased. The benefits taken each year can vary depending on your individual circumstances.
Do you have a UK pension? Would you like more flexibility and control over your pension pot? Then consider a QROPS.
What is a QROPS?
QROPS (Qualifying Recognised Overseas Pension Scheme) was established in the 2006 Finance Act in the UK. It enables those individuals who have left the UK or are planning to leave the UK to migrate their UK pension entitlements internationally to a HMRC authorised pension trustee in an authorised jurisdiction.
Is a QROPS suitable for me?
If you have a UK pension, have left the UK, plan to leave, or are a resident but not UK domiciled, a QROPS is one of the most favourable pension schemes available to you. However, obtaining professional financial advice is a must to ensure that you do comply with the rules.
Why should I choose a QROPS?
QROPS give you more control over where your pension fund is invested, allows you to consolidate a number of pensions into one QROPS and does not require you to buy into an annuity.
Furthermore, the remaining fund is left to your beneficiaries without any deduction of UK tax upon death.
What is the process?
Initially with your authority we can trace all existing entitlements, establish up to date valuations and request a full schedule of benefits so we know exactly how your entitlements work. Working in conjunction with our FCA regulated deVere UK Ltd office in London and taking into account your personal background and longer term aspirations, we can provide the necessary legal and regulatory oversight in the US and UK to enable you to make a prudent decision as to the right option moving forwards.
What are the key benefits of a QROPS through the deVere Australia Group?
• No need to buy an annuity
• Funds passed to beneficiaries in full after death: after completing 5 full tax years of non UK Tax residency, your pension will no longer be liable to UK income tax or death charges of up to 45%
• Flexible choice of currency your pension can be paid in
• Up to 30% pension commencement lump sum
• Secure jurisdictions
• Investment flexibility
• Transparent charges
• Greater investment freedom
• Succession planning
• Pensions can be consolidated in to one
• Free from UK lump sum death benefit charge
• Some jurisdictions allow your pension income to be paid gross
Please note: Any transfers to an Australian pension that has UK QROPS status after 9 March 2017 could be subject to a retrospective tax charge should you leave Australia and become resident in another jurisdiction within 5 years of the transfer. Professional advice should be sought.
Contact deVere Australia Group today for a free, no-obligation consultation with an expert financial adviser.