FoxyP

Hi there
What I would like to know is:- Can anyone tell me if its possible to move my private pension fund into Turkey from England.
FACTS- After 32 years working in UK and paying into private pensions hoping to retire at 50, I have now been living in Turkey for 22 months and living off my capitol which was held in a tracker account, each withdrawal carries a commission charge and I am still being taxed on my interest. This is defeating the object of the investment. I am currently resident here and have a house with and I am looking after my 6 year old son.
I have now moved all my money here and now its in Turkish lira and makes a return of 18.5% interest net (14.45%net) as an example £20,000 after tax gives almost 700 Turkish lira (£245) each month income. I am now considering moving my pension fund to Turkey and improving my pension income.
As the difference in interest between holding money in a British pound account and converting it into Turkish lira is vastly different if anyone knows what risks are involved in so doing.
My pensions are currently frozen with no payments going into the funds and I need to address the issue before I take my pension this year in july 2007.
Has anyone succeeded in doing this or is interested in attempting as I think the option of moving the fund is possible within the UK. I have been reading with interest the forum relating to Canada but here must be another forum.

FoxyP

surviving-gal

I replied to this yesterday, but don't know where it went. Anyway, you are better off writing to a Turkish website...try www.mymerhaba.com, quite informative site. Good luck.

FoxyP

Thanks for the advice.
Have now added this Topic onto that website and awaiting any information of relevance. the post is under the same user name if its of innterest to you.
FoxyP

surviving-gal

Hi FoxyP:

I did not see your post, not sure where you posted your question. The forum has several categories, there is one called "Money Affairs", you should post your question there, there is someone who gives very good advice on financial matters, also there is a category called "Moving to Antalya". Good luck and hope you and your little boy will be happy living there.

expatadvisor

I am sorry to advise that UK pension legislation will not allow you to transfer UK regulated pension funds outside the UK or to another form of investment vehicle for that matter. It may be appropriate for you to see if you can now realise your pension and perhaps withdraw it out by taking 25% as a tax free lump sum and an annuity with the remainder. There are also other options available which you should discuss with your advisor.

FoxyP

Thanks for all the advice, I am taking my 25% lump sum july and have to draw pension from that time too. The reason for the urgency was that I had heard that once the pension is being paid out then the fund is retained by the provider.
Therefore I was looking to improve the prospect of future payments by moving the fund before this time. Another point I was taking into consideration and an important one is the fact of tax. In my eyes it makes more sense to draw out the biggest sum possible and take a smaller pension payment as these payments may all qualify you for taxation if you are approaching the threshhold of your tax free allowances.

regards FoxyP

expatadvisor

Yes, re the lump sum - the right thing to do, but remember to use the open market option regarding the pension as this can make quite a difference to the annuity obtainable. It is possible to increase your annuity by up to 25% with the right company.

FoxyP

Thanks, any suggestions on websites would be very helpfull cos I've been looking and one site says I must be over 50 to apply and others are just requests for details but giving no firm advice. I was told by my company(prudential) that I must wait till 1 month before my retirement date to apply for any quotes etc but I wanted to start now so all was in hand.
Also as a point, if anyone needs any insight into life here and re-location then I have a lot of experiences to share, be it visas, schooling, banking, house purchase, renting, transport etc. This I have aquired 1st hand up against all the red tape etc. I don't claim to be an expert but I'm willing to share what I have.

Many thanks FoxyP

expatadvisor

The earliest retirement date is 50 for UK pension plans, also what Prudential say is right in that they will only provide you with a quote within one month of your 50th birthday. On current rates Pru are good as are Legal and General and Norwich Union. You will get a higher rate if you are a smoker.

FoxyP

ok. I am non smoker and I've also read up on garentees and inflation linked so I will go for standard pension which is highest payout, just going to see what I can gather from those links you gave me now. Maybe register with them and later when time comes i'm all ready to go.
Many thanks again FoxyP

FoxyP

Hello again
I havn't posted in a while now but I thought I'd update you all on events.
I have been making a lot of enquiries and it seems that we have inherited our personal pensions from the THATCHER ERA, where everyone was encouraged to plan for their future. HAHA!!
My results are that we cannot move the fund itself out of the united kingdom or offshore. We can get our lump sum and we can get pension payments paid into a foreign bank providing you have an english pound account, otherwise you are charged for currency transactions.
The monthly pension increase for leaving retirement for another 5 years in my case is from £214 to £307.
So here is where my plan is heading.
Note:- (All interest is transferred to my current account each month)
1/. My capitol is currently giving 14% net interest per month and providing sufficient cash for day to day living.
2/. My lumpsum will be invested in the same way thereby increasing my income considerably.
3/. My monthly pension payment of £214 will be added to the capitol amount therefore combatting inflation by a 3.5% increase each year.

I know the risks of turkish lira but you have to remember I have elected to live here so have to base life around this currency.
My calculations are that at the rate of £214 a month to get my total pension fund payed back will take 27 years.
A delay of 5 years only see's any increase in lumpsum and payments based on how well investment goes on the stock markets.PLUS I have heard that changing regulations are underway for 2010 with regards to the lumpsum payments Adding to that, the fact of a good pension will be taxed along with capitol investment and you see the formulation of a no win situation.
Based upon these facts I am sticking to my plan and taking a somewhat relaxed attitude to retirement form the age of 50 while I still have health and fitness instead of waiting for the inevitable onslaught of old age and NHS waiting lists for checkups etc and my bus pass.I think one must take control at some stage otherwise we are a nation of sheep all walking the predetermined path to a goal that we know is not everlasting but of decreasing timescale. Only politicians dictate at what age we are allowed to retire on state pension and this is because of government spending. I try not to moan but they are slowly controlling everything,(drinking, smoking, speed cameras, congestion charges, council tax, hospital waiting lists, etc) but not controlling imigration. what next freedom of speech in a big brother society.
On a recent fact finding trip back to UK I was appalled at how unhygenic the hospitals actually are and the amount of staff without basic English fluency. I am not racist but only in England could this situation occur.
Any comments are welcome.

FoxyP

expatadvisor

It is interesting to note that there have been recent moves re the possibility of transferring personal pension plans overseas. Inter company pension transfers are possible in some circumstances, and the Inland Revenue are looking at circumstances that will allow transfers to take place wih personal pension plans.

However, as legislation stands today and as previously discussed and you are correct in your findings. It is of course ludicrous that it wil take you 27 years of annuity income to effectively have your capital returned to you. Taking an index linked annuity will result in a much lower annuity that opting for a level annuity but in consideration of your age and potential life expectency it may be the better option. Get quotes for both options. Depending on size of funds and investment risk you are prepared to accept then you could opt for a With profits Annuity (With profits doe seem a dirty word however) or Income Drawdown etc which can allow you access to a lump sum now and hold off taking full income with the remainder until a later date - just food for thought really.