Edo

Is there any difference between the pension amount that you receive at retirement if you pay into Class 2 or Class 3?

Club Soda

Thanks everyone!

Steve_

You use NI38, it's on the HMRC website.

As John pointed out you can use a self-directed RRSP. What you can hold in an RRSP is not as broad as in a SIPP, but you can certainly hold UK equities. The real snag is the forex issue because the UK equities are sold in Sterling and the dividends are paid in Sterling so that makes it rather complicated. It can be done but it's not very flexible.

All the major FIs in Canada have RRSP products and you can buy Canadian and US ETFs, mutual funds, etc. no problem. And anything listed on a Canadian or US exchange. When it comes to other countries though, that gets more complex.

Thankfully in Canada we still use the English language and they're not called "wrappers" and you don't take "drawdowns". An RRSP is a form of trust and you can take withdrawals.

If you say "wrapper" to a financial advisor here, he'll think you're talking about Drake.

No, as I pointed out in #5. Which is why you want to do Class 2 instead of 3. I'm still not entirely clear on what happened to my SERPS contributions though.

Edo

OK, so I am assuming that once I register for Class 2 NI and if it gets abolished, I will still continue to pay at Class 2 rates but reap the benefits as someone who paid Class 3.

Steve_

No, there's no grandfather clause. As of April 6th, 2018, Class 2 is abolished. Any remaining years after that you have to pay Class 3. Once you've got enough qualifying years regardless of how you paid in, you get a full State pension. (Bearing in mind you were most likely paying Class 1 to begin with anyway).

Whether you can still register for Class 2 now and pay missing years as Class 2, I'm not 100% sure but I think you can.

Steve_

On the subject of RRSPs, just thought I'd add it's better to look at what the FIs have before you go crazy and try and be really OTT about it. In Alberta, it may make more sense to go to an ATB branch as it's a Crown corporation, but at the end of the day, self managed RRSPs are going to incur broker fees if nothing else.

Otto The Squid

A UK IFA will have access to a number of SIPPS that would accept a Canadian residents. The platforms available will have thousands of low cost funds/ETFs etc. Non-UK IFAs will have access to only a few SIPP providers.

Otto The Squid

You transfer the transfers?

Given the numbers involved, I think you will have a problem substantiating that claim. What is the name of this organisation and why would someone PM you without knowing?

Josh.Woolley

Well for a ROPS only 17% of British pensions qualify, a fact find would need to be done to see if a ROPS would even be beneficial, and I cannot disclose that information according to the sites rules. But yes the transfer is done on a complementary basis as the issuer of the QROPS product pays the fees.

Otto The Squid

And where is the source of this 17%?

If the QROPS provider pays for the review then this would most certainly be in breach of the FCA conduct of business. The FCA state-

Within our Conduct of Business Sourcebook section of our handbook under COBS 2.3.1, we list our expectations with regards to inducements and expect all firms to follow these to ensure each consumer is treated fairly. To view these rules and understand how we expect a firm to act you can click here

https://www.handbook.fca.org.uk/handbook/COBS/2/3.html

Is the QROPS provider that is paying for the review going to recommend a competitor?

While that is only the FCA rules for UK business, the same principles should apply elsewhere.

christmasoompa

You can't, but I bet I can guess. There's only one company that spams us on a regular basis on QROPS posts, many of their staff have been banned from this forum because they can't be bothered to abide by the Site Rules, and they're a regular annoyance for us mods.

If I had to bet on it, I'd guess you work for that company, that begins with the letter D.

Josh.Woolley

All ROPS providers are registered within HMRC's guidelines, the "review" is done by the broker, the issuer does not get involved with the review. The review is to see if your pension is legally eligible for transfer and there is penalties for false claims. FCA only applies in the UK I do believe? I didn't post to spam or to get in an argument, I plan on abiding by the site rules and help was asked for I simply offered. Apologies if offence was taken.

P.S
As for recommending a competitor, the fee for transfer is 4%-7% depending on the products. A flat rate of 4.75% is charged here, so competitors are welcome to offer quotes, my intention was not pitch sales on here, I have recently moved away from the UK and I signed up to see how other individuals were dealing with Expat life. I just happen to be in the finance industry.

Otto The Squid

The conduct of business bans inducements to brokers! FCA rules must apply on transfers from final salary schemes. Best practice should be applied by all.

I thought the days of charging more than about 2% were over- clearly not. A low cost platform has no entry fees at all, and no exit fees either. Why not use those?

Josh.Woolley

I'm not sure what I can and cannot post now, like I said I'm new here and my intention was not to get into an argument. Inducement to brokers is an incorrect interpretation, the broker simply gives you access to product you would not be able to obtain as an individual. Best practise Is applied, but applying UK laws to worldwide practise would be impractical. I did not make up the charge figures, the market is set to 4%-7% but we also agree this is abit steep and hense the cap at 4.75%. Not sure quite how you would implement a low cost platform for a service that is very "red tape" intensive. If you did it yourself via platform and it turns out you were not eligible you would be exempt, incur charges and penalties. ROPS are very beneficially to a "select group".

Otto The Squid

Any payment from an investment firm or a pension provider is an inducement.

A platform is a non commission product and better for the investors than a commission ridden insurance bond. A professional adviser will charge an agreed fee. Well short of 4 per cent.