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.
To find out if Florin Pensions can help you with your UK pension(s), we follow a step-by-step pension review process.
You will have an initial meeting with a Florin Pensions’ advisor so we can learn more about your objectives and your UK pension(s).
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).
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).
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.
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.
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.
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).
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.
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.
When my UK financial advisor could no longer advise me on my UK pensions, he recommended I contact Florin. I am so glad he did. Emma and her team helped me make sense of my existing pensions by consolidating them into a more flexible and transparent UK plan and investment strategy. I value Emma’s continued support and advice as I work towards my retirement. Congratulations to her and her team for their excellent work.