Contact your current pension providers and ask for a breakdown of the current charges, the fund investment options, if there is a guaranteed annuity rate, the normal retirement date (NRD) and ask for them to explain to you what type of pension you have. Alternatively you can compare a letter of authority to allow your financial adviser to speak to them on your behalf.
Once you have an idea of the transfer value, then you need to review the “QROPS” options, their costs, the benefits of the various jurisdictions and determine whether by moving your pensions overseas you could be in a better tax position either on income or death, you could generate a higher level of growth or income and what the fees are with your chosen QROPS provider compared to your current scheme. If you have a “final salary” scheme, then it is advisable to request a TVAS (Transfer Value Analysis System) report, most importantly this will access the “critical yield” on your pension, meaning the growth needed in order to equal or better your current pension. As many “final salary” schemes are closed to new members and in deficit, the risk of achieving you forecasted pension also should be considered.
To accept the transfer of your UK pension transfer value, then you need to complete an application form with your new pension scheme, discharge paperwork from your current scheme and any other forms that HMRC require depending on the type of pension scheme. Once you have set the wheels in motion then it normally takes between 6-8 weeks to transfer your benefits into the new scheme. Step4
Now that you have transferred your pension you need to consider your desired income and frequency in which you would like to make withdrawals. You also need to consider if you require an initial cash payment, referred to as “Payment Commencement Lump Sum” (PCLS), this payment is paid out “tax free” but you should consult your tax adviser as to how your country of residence treats this payment.
In order to maintain your income requirements you must now consider your investment options. what level of return do you need to achieve in order to generate your desired income, what is your attitude to risk and what investment options do you have with your chosen QROPS provider. It is advisable to appoint an “Investment Adviser” to help manage your pension and help ensure your investment strategy matches your risk appetite.
The final and probably the most important step to consider is a continuous review of your pension. You should review your pension requirements at least once a year, we are in a fast moving world, your day to day needs can often change and that’s before considering the ever changing economic outlook that can drastically impact your pension.