Mr and Mrs Smith, who demonstrate a proactive approach to their financial future, currently reside in an EU country and are preparing for retirement in five years. With their children now independent, the couple are keen to optimize their finances for the pre and post-retirement period. They have several issues to resolve, but first on […]
Tax-Efficient Investment Case Study
Mr and Mrs Smith seek a tax-efficient investment for their capital. They have reorganised their pension plans into one easy-to-monitor Flexible Access Drawdown (FAD) non-resident SIPP. This fits in much better with their eventual retirement in the EU country where they are now residents. FAD allows income withdrawals to vary each year according to how […]
QNUPS and Estate Planning
Qualifying Non-UK Pension Schemes (QNUPS) are useful for UK expats to plan for future inheritance tax liabilities and provide additional retirement income. This article focuses on QNUPS and estate planning. Most QNUPS are based in offshore territories such as Malta, Guernsey and the Isle of Man. Many UK residents invest in QNUPS when they are […]
QROPS or SIPP?
We are often asked whether a pension transfer is best to a QROPS or SIPP. The answer is ‘it depends’. We understand that everyone’s circumstances are unique, and no ‘one size fits all’ solution exists. However, some indicators help you make the correct choice. The basic product structures are very similar, although non-resident SIPP plans […]
Pensions review on the way
The newly elected Labour Government promised a pensions review as part of its manifesto. While the current system works reasonably well, there are areas that need attention. I trust that Rachel Reeves will not only focus on increasing tax revenue, although I understand that this will be part of the overall study. There are urgent […]
Investment charges
Financial advisers, fund managers, banks and other investment institutions are obliged to disclose all investment charges and fees before an individual commits to a pension transfer or portfolio agreement. If this actually happened, investors would be fully equipped to make an informed decision before it’s too late. Unfortunately, this isn’t always the case; many only […]
New Lifetime Allowance rules
Just when the pension sector felt it could move forward, it faced a set of new Lifetime Allowance rules. In the 2023 budget, the Chancellor announced the abolition of the Lifetime Allowance (LTA). The legislation was supposed to be effective immediately, but as royal ascent wouldn’t be completed until February 2024, the pensions industry had […]
Pension investment strategy
Investment markets have been volatile in the last few years. The financial aftereffects of COVID-19, the war in Ukraine, and the increase in energy prices and inflation have created uncertainty, and markets have suffered as a result. What impact does this have on your pension investment strategy? Traditional portfolio allocation theory says we should invest […]
UK Budget 2024
The UK Budget 2024 was primed to be an important event in the financial calendar. Industry professionals huddled around, waiting for that one policy announcement that would forever change the face of financial planning. It wasn’t to be! In past budgets, income tax rates were slashed, mortgage and pension tax reliefs disappeared or were reduced, […]
Updating your pension plan
Andy Warhol once said, “They always say time changes things, but you have to change them yourself.”. We are pretty good at this. We regularly change our mobile phones, clothing style, cars, houses and almost everything we own. We do this to renew and refresh our belongings and ensure we’re up-to-date with modern trends and […]
Retirement planning: new year, new country?
Christmas is often a time for reflection. How was the past year? What will the new one be like? For some, it’s a focus on retirement planning and a move abroad. Since Brexit, UK emigrees to EU States are now considered 3rd country nationals. In other words, in the same way as anyone who doesn’t […]
Autumn Statement 2023
The UK Chancellor makes his annual Autumn Statement every year. The purpose is to update progress from the main event, the Spring Budget. Initially, it was a relatively mundane affair where few important new policies were announced. Over the years, the Autumn Statement has morphed into a mini-Budget as more new laws and government policy […]
Changes to NHR in Portugal
Despite the undoubted success of NHR in Portugal, political pressure has signalled the end of the current system and the beginning of a new one. Whilst the NHR regime was highly beneficial for wealthy retirees, it is claimed that increases in the cost of living, and in particular housing, have not been so great for […]
Multi-jurisdiction divorce and pensions
Divorce can be a difficult process at the best of times. Even in relatively straightforward cases, it’s a long and expensive procedure. Lawyers don’t come cheap, and the incidental costs associated with at least one partner finding new accommodation and establishing a new life are unavoidable. This article deals with the complexities of multi-jurisdiction divorce […]
QROPS transfers guidance
The financial industry welcomed the Pensions Regulator’s guidance notes on QROPS transfers. New rules designed to prevent scams were sorely needed as we have seen so many people’s pension pots decimated by criminal behaviour and poor adviser practises. However, pension providers often interpret the recently introduced red flag system incorrectly. This is unsurprising as insurance […]