UK Pension Review

Living in the US can make it challenging to know what UK pension options you have and what will best meet your retirement needs. We can help.

Do I Need a Pension Review?

Whether or not a UK pension transfer is right for you will depend on many factors, starting with the type of UK pension(s) you have.

We believe it is important to first review your existing UK pension(s), understand your personal circumstances and confirm your retirement goals before deciding whether a pension transfer into a new UK personal pension (like a SIPP) could be beneficial.

In certain cases, a UK pension transfer might not be the right answer. As part of our review, we will let you know.

Our Process

To find out if Florin Pensions can help you with your UK pension(s), we follow a step-by-step pension review process.

1

Initial Consultation

You will have an initial meeting with a Florin Pensions’ advisor so we can learn more about your objectives and your UK pension(s).
2

Learning About Your UK Pension(s)

You complete a Florin Pensions Authorization so that we can request detailed information from your existing UK pension provider(s). Our team will assist in locating each pension provider and requesting up-to-date information on your UK pension(s).
3

Learning About You

We will go through a fact-finding process with you to learn more about your personal circumstances and retirement & investment objectives for your UK pension(s).
4

Pension Review

Using the information gathered, we will provide a complimentary review of your existing UK pension(s). If appropriate, this review will include recommendations for a UK pension transfer, pension provider and investment manager. We will discuss this review with you and confirm next steps.
5

Decision to Remain or Transfer

During our review process, we might decide together that a UK pension transfer is not right for you. This can be for a variety of reasons we would discuss. We may also decide that a further review in the future could be helpful.
6

Investment Choice

If you proceed with a pension transfer, we work with you to confirm your investment strategy based upon your risk appetite, including having the option to invest and draw your pension in GBP or USD.
7

UK Pension Transfer

We help to complete the pension transfer paperwork and liaise with your existing and new UK pension providers to ensure completion of the transfer(s).
8

Ongoing Advice and Support

Your dedicated Florin Pensions advisor will continue to provide you ongoing pensions and investment advice before and during retirement to keep you on track.

Types of UK Pension

Defined Benefit Pension

A workplace pension set up by your employer where the value of your pension depends upon the number of years worked for the employer and your salary. At retirement you will receive a regular income (usually inflation linked) for your life. Investment risk is borne by your employer. Sometimes also referred to as a “final salary” or “career average” pension scheme.

Defined Contribution Pension

Typically, a personal or stakeholder pension. It is built up through contributions by you (and your employer if applicable) and any investment returns. The value of the pension at retirement will depend on how much money has been paid into the pension and investment performance. Investment risk is borne by you. Sometimes also referred to as a “money purchase” pension scheme.

UK State Pension

A regular pension payment from the UK government that you may qualify for when you reach UK State Pension age. The amount you receive depends on your National Insurance record. For many people, the UK State Pension is only part of their retirement income. They may also have a workplace or personal pension.

Have a UK Defined Contribution Pension?

If you have one or more defined contribution pensions, we believe it is important to understand how each is invested and what retirement benefit options are offered to you now you live in the US. A pension review by Florin Pensions will help you learn more about your UK pensions.

Have a UK Defined Benefit Pension?

If you have a DB pension and are considering transferring the cash equivalent transfer value (CETV), you should always start by assuming that it is not the right thing to do. However, in certain cases, it can make sense and will depend on your individual circumstances. In most cases specialist UK pension transfer advice is required. To assist our clients to meet the UK requirement for specialist UK advice, Florin Pensions works with appropriately qualified UK independent financial advisors to prepare a suitability report that takes into consideration your specific circumstances as an expatriate residing in the US.

Talk to an Advisor

Whether or not your UK pension is a significant part of your retirement savings, with the right guidance and advice, it can play a meaningful role in your retirement.

Talk to an Advisor

Frequently Asked Questions

What happens to your UK pension when you move to the US depends upon the type of workplace or personal pension you have and whether you and/or your employer are still contributing to your UK pension whilst in the US.

However, assuming there are no further contributions to your UK workplace or personal pension now you are abroad, your UK pension will simply be treated as a “deferred” or “old” pension. You do not lose your pension benefits and at retirement you should be able to access your UK pension.

Living abroad can sometimes restrict the investment options available to you under your UK pension or how you are able to draw from your UK pension at retirement. For this reason, it can be helpful to have a financial adviser review your existing UK pension to determine whether it meets your current retirement objectives.

On 6 April 2015, the UK government introduced new UK pension freedoms which are revolutionizing how people are now able to access their UK personal and occupational pensions. Examples include the ability from age 55 to draw as much or as little from your pension as desired with no upper limit (or the need to purchase an annuity) and the ability to pass on your pension to the beneficiaries of your choice.

All these freedoms now offer great opportunities for UK pensions and general wealth planning. However, for the British expatriate living in the US, there are two important questions to consider:

Will your existing UK pension provider afford you all of these freedoms – many do not as there is no legal obligation to do so; and
If your provider does offer these freedoms, how can you best utilize them?

By undertaking a review of your UK pension with a financial adviser, you can determine what retirement options you have under your existing UK pension(s) and whether these options are flexible and/or meet your retirement objectives. If your existing pension does not offer the types of flexibilities that you desire this could be a reason to seek a pension transfer.

As you are unable to “roll-over” you UK pension into your US retirement account, we always advise clients to view their UK pension as just another pension pot that can still be an important part of their overall US retirement strategy. A UK pension can, in the right type of pension plan, be very flexible and work cohesively with your US retirement assets. It is, however, important to understand your retirement objectives so that your UK pension can be managed in line with those objectives. Example objectives include the ability for you to:

Access your UK pension from age 55 to act as bridge until you wish to access your US retirement account or US Social Security;
Invest and draw your UK pension in USD to eliminate future exchange rate risks; or
Pass on your pension to your loved ones or nominated beneficiaries when you pass away.

What is a SIPP?

A SIPP (or Self Invested Personal Pension) is a type of UK registered personal pension that, as opposed to a conventional UK personal pension, can offer greater flexibility and individual control. In many ways, it is similar to an Individual Retirement Account (IRA) in the US.

SIPPs have typically always been more flexible than other types of UK pensions, particularly older employer or insurance company pension schemes. Since the UK pension flexibilities were introduced in April 2015, SIPPs have offered even greater retirement and wealth planning opportunities.

What is an “International SIPP” or “Expat SIPP”? Are they different to a SIPP?

An International SIPP, an Expat SIPP and a SIPP are all regulated in the UK in the same way. As a result, it could be argued that the terms are used largely for marketing purposes.

However, it is true that not all SIPPs are created equally. For example, some SIPP providers will not accept non-UK resident clients or offer other benefits like being able to invest and draw from a SIPP in multi-currency.

If a SIPP is not called an International or Expat SIPP, do not assume it will not meet your needs as a non-UK resident.

In fact, if an advisory firm recommends that you invest in an International SIPP, we recommend that you confirm the structure and charges in full. As cautioned by the UK’s FCA in 2020, some overseas advisory firms have recommended that people invest their pension funds through an offshore investment bond within an International SIPP. This could expose you to high and/or unnecessary charges. The tax benefits of investing through an offshore bond are, as the FCA notes, “largely redundant to someone investing in a UK personal pension scheme”.

At Florin Pensions, we have never recommended offshore bonds to our clients. We work with a panel of UK pension providers so that we can select with clients the pension provider that best meets their needs.

What happens to your UK pension when you move to the US depends upon the type of workplace or personal pension you have and whether you and/or your employer are still contributing to your UK pension whilst in the US.

However, assuming there are no further contributions to your UK workplace or personal pension now you are abroad, your UK pension will simply be treated as a “deferred” or “old” pension. You do not lose your pension benefits and at retirement you should be able to access your UK pension.

Living abroad can sometimes restrict the investment options available to you under your UK pension or how you are able to draw from your UK pension at retirement. For this reason, it can be helpful to have a financial adviser review your existing UK pension to determine whether it meets your current retirement objectives.

On 6 April 2015, the UK government introduced new UK pension freedoms which are revolutionizing how people are now able to access their UK personal and occupational pensions. Examples include the ability from age 55 to draw as much or as little from your pension as desired with no upper limit (or the need to purchase an annuity) and the ability to pass on your pension to the beneficiaries of your choice.

All these freedoms now offer great opportunities for UK pensions and general wealth planning. However, for the British expatriate living in the US, there are two important questions to consider:

Will your existing UK pension provider afford you all of these freedoms – many do not as there is no legal obligation to do so; and
If your provider does offer these freedoms, how can you best utilize them?

By undertaking a review of your UK pension with a financial adviser, you can determine what retirement options you have under your existing UK pension(s) and whether these options are flexible and/or meet your retirement objectives. If your existing pension does not offer the types of flexibilities that you desire this could be a reason to seek a pension transfer.

As you are unable to “roll-over” you UK pension into your US retirement account, we always advise clients to view their UK pension as just another pension pot that can still be an important part of their overall US retirement strategy. A UK pension can, in the right type of pension plan, be very flexible and work cohesively with your US retirement assets. It is, however, important to understand your retirement objectives so that your UK pension can be managed in line with those objectives. Example objectives include the ability for you to:

Access your UK pension from age 55 to act as bridge until you wish to access your US retirement account or US Social Security;
Invest and draw your UK pension in USD to eliminate future exchange rate risks; or
Pass on your pension to your loved ones or nominated beneficiaries when you pass away.