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Uk pensions in Canada

Uk pensions in Canada

Old Feb 21st 2020, 11:18 am
  #91  
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Default Re: Uk pensions in Canada

I myself used national Bank some years ago to go through the process but when it came time to pull the trigger Canada put a stop on all qrops transfers also I was very unsure about the tax liability ( being taxed at both ends ) I am once again delving into the transfer as I am almost out of time to withdraw from the Prudential before I lose my bonuses, there is a tax form that can be acquired from revenue Canada that exempts you from paying UK taxes through the treaty not sure of what it is but its here on someone elses post
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Old Feb 21st 2020, 12:04 pm
  #92  
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Default Re: Uk pensions in Canada

Originally Posted by billgreg View Post
I myself used national Bank some years ago to go through the process but when it came time to pull the trigger Canada put a stop on all qrops transfers also I was very unsure about the tax liability ( being taxed at both ends ) I am once again delving into the transfer as I am almost out of time to withdraw from the Prudential before I lose my bonuses, there is a tax form that can be acquired from revenue Canada that exempts you from paying UK taxes through the treaty not sure of what it is but its here on someone elses post
Google:

UK Canada dual tax HMRC form

Comes straight back as the first link. Diwnliad PDF, fill it out, get CRA to stamp and sign it, then send to HMRC. I did this, worked a treat.
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Old Mar 11th 2020, 3:04 pm
  #93  
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Default Re: Uk pensions in Canada

Originally Posted by Kentonmag View Post
Well thanks everyone for your concerns. The Company I am working with are Blacktower financial management. I did check with The UK financial services register and they are fully recognised in the UK. Also if I run into problems the UK financial service ombudsman can conduct an investigation on my behalf. I cold called their head office in Gibraltar to consult with them on the person I am dealing with and went online to make sure there were no scam or negative concerns about the Company. I even went into their Facebook page and looked at some of the charities that they are supporting as well as viewing their Christmas party photographs.
To give a background myself and my wife are taking early retirement in March 2019, we missed the boat on Qrops and no, I'm not waiting for it to come back, if it ever does. So the option we took was to invest in SIPP's with our UK Company pensions, however when we contacted Blacktower we had to talk with an independent advisor, as now required by law in the UK. The advisor persuaded my wife to leave her pension within her Company scheme and take it as a regular pension, this is now happening. The independent advisor is from Tramway management a fully licenced Company in the UK.
Onto myself, I was also advised by the Tramway advisor to keep my Company pension within my Company, but as we all know they base their information on everybody living until they're 85 or older. I want the availability to draw down my pension over the next 12 years or so, i.e. my fittest years. So I had to write a letter going against the advice of the advisor. Anyway we are getting close to the transfer and all funds will be invested in Vanguard funds in the UK and I will set-up the draw down as I wish. I did contact the CRA and advised them of my transfer from a Company pension in the UK to a UK SIPP to make sure there are no tax implications and I was advised that this was correct, I would not be taxed until I start to remove the money from the SIPP and bring it to Canada as income.
As far as fee's go my brother who worked for the same Company in the UK as I did, transferred his pension out last year. He still lives in the UK and I have compared the fees that I am paying and his were very similar. He also had to sit with an independent advisor which, as I said earlier, is now the law in the UK when transferring a Company pension, this is to make sure you fully understand what you are doing and you have an awareness of the risk you are taking.
As for the UK bank account, I enquired at 3 high-street banks when I was back in the UK this past March and none of them would allow me to open a UK account without a UK address.
Anyway I do believe I have exercised due diligence but in the event that someone runs off with my money I have a hitman on speed dial. I will resurrect the post and let you know once everything is sorted whether I have to cancel my retirement and work for another 3 years due to getting screwed (and divorced).
Kentonmag - I know that this is an old post, but I was wondering if you transferred your UK company pension to a UK SIPP back then, and are you now thinking about transferring the UK SIPP via QROPS to Canada?
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Old Mar 27th 2020, 2:12 pm
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Default Re: Uk pensions in Canada

Originally Posted by YYCRetired View Post
Kentonmag - I know that this is an old post, but I was wondering if you transferred your UK company pension to a UK SIPP back then, and are you now thinking about transferring the UK SIPP via QROPS to Canada?
I did reply to your private message
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Old Mar 27th 2020, 4:58 pm
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Default Re: Uk pensions in Canada

Originally Posted by Hurlabrick View Post
I was told by my Canadian tax accountant that you can only 'pension share' with your spouse from age 65 (or maybe it was age 66) onwards. I am a couple of years shy of this yet!
I’m not so sure of that - you mean pension splitting? We use TurboTax and it suggests to us to do that with our pensions and we’re both (comfortably) under 65
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Old Mar 27th 2020, 5:03 pm
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Default Re: Uk pensions in Canada

Originally Posted by Twitcher1958 View Post
I’m not so sure of that - you mean pension splitting? We use TurboTax and it suggests to us to do that with our pensions and we’re both (comfortably) under 65
Old post. My Canadian tax accountant has now successfully done 'pension splitting / sharing' between myself and my wife for my UK Income drawdown (still not age 65).
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Old Mar 27th 2020, 5:14 pm
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Default Re: Uk pensions in Canada

Originally Posted by Hurlabrick View Post
Old post. My Canadian tax accountant has now successfully done 'pension splitting / sharing' between myself and my wife for my UK Income drawdown (still not age 65).
Just wanted to clarify as I couldn’t see it corrected elsewhere on the thread - apologies if I missed it
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Old May 11th 2020, 5:17 pm
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Default Re: Uk pensions in Canada

If I transfer a UK final salary pension to a RRSP QROPS do I have to convert this to a RRIF at age 71? Why would I do this as I understand a RRIF is an annuity? Surely I am transferring a final salary pension with a guaranteed annuity to a pension where I have to purchase an annuity at 71 which, being based on interest rates, means that I could get a worse return than what the UK pension offers me?
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Old May 11th 2020, 5:34 pm
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Default Re: Uk pensions in Canada

Originally Posted by Banff69 View Post
If I transfer a UK final salary pension to a RRSP QROPS do I have to convert this to a RRIF at age 71? Why would I do this as I understand a RRIF is an annuity? Surely I am transferring a final salary pension with a guaranteed annuity to a pension where I have to purchase an annuity at 71 which, being based on interest rates, means that I could get a worse return than what the UK pension offers me?
You would have to get UK financial advice as regards taking the cash value transfer for your final salary, but once you have this then yes, you can move the cash value to a Canadian ROPS registered RRSP. You would then be governed by Canadian pension rules, so yes, you would then move this to a RRIF at age 71 and take at least the minimum income.

No, a Canadian RRIF is most certainly NOT an annuity per se. It is the Canadian equivalent (with important differences!) to a UK Income Drawdown plan. Your money is still invested and growing.

I am not expert on RRIF's, so I won't comment on how much you can take by way of income, but I do know that unlike a UK Income Drawdown, you MUST take at least the minimum income (i.e. I don't know if you can take more than the minimum).

If you did nothing with your UK final salary, that would become a UK annuity when you retire and payout a set (and poor!) income, albeit guaranteed. When you die, there is nothing paid out (even if you die a few days after starting the annuity - that is how annuities work).

You really need financial advice here I suggest.
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Old May 11th 2020, 5:44 pm
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Default Re: Uk pensions in Canada

A final salary is not an annuity but a guaranteed payment so it is one that rises with inflation whereas an annuity is one that is based on interest rates (which I agree are terrible). The final salary income is actually really good but I have been offered 40 years of the income to transfer which makes sense to look at even in choppy markets. I could even park it in bonds and get a better return overall.

Spoke to someone about Canada QROPS but they look expensive.

Just don't want to have to buy an annuity and just been reading more on RRIF's and what I have to do later when I convert to one. I am already building a chunky RRSP here so I am going to look at a SIPP instead I think. No need to take income from that until age 75 and lesser amount. Plus a SIPP is a lot cheaper
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Old May 11th 2020, 5:46 pm
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Default Re: Uk pensions in Canada

Originally Posted by Banff69 View Post
If I transfer a UK final salary pension to a RRSP QROPS do I have to convert this to a RRIF at age 71? Why would I do this as I understand a RRIF is an annuity? Surely I am transferring a final salary pension with a guaranteed annuity to a pension where I have to purchase an annuity at 71 which, being based on interest rates, means that I could get a worse return than what the UK pension offers me?
Hi Banff69,

Pretty much what Hurlabrick has said..........
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Old May 11th 2020, 5:49 pm
  #102  
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Default Re: Uk pensions in Canada

Originally Posted by Banff69 View Post
A final salary is not an annuity but a guaranteed payment so it is one that rises with inflation whereas an annuity is one that is based on interest rates (which I agree are terrible). The final salary income is actually really good but I have been offered 40 years of the income to transfer which makes sense to look at even in choppy markets. I could even park it in bonds and get a better return overall.

Spoke to someone about Canada QROPS but they look expensive.

Just don't want to have to buy an annuity and just been reading more on RRIF's and what I have to do later when I convert to one. I am already building a chunky RRSP here so I am going to look at a SIPP instead I think. No need to take income from that until age 75 and lesser amount. Plus a SIPP is a lot cheaper
If it were me, I would take the money and go the SIPP route (esp if as you say they are offering a fortune in cash value, which they will as they want to discharge their future liabilities)! You can have flexible withdrawals any time from age 55 onward. Of course your withdrawals would be in GBP and you would be hostage to exchange rates but hey.

I personally have a UK Income Drawdown which I am taking modest monthly withdrawals from to my UK bank account, then moving them across using TransferWise.

But again, best to get professional financial advice.
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Old May 11th 2020, 5:52 pm
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Default Re: Uk pensions in Canada

Originally Posted by Banff69 View Post
A final salary is not an annuity but a guaranteed payment so it is one that rises with inflation whereas an annuity is one that is based on interest rates (which I agree are terrible). The final salary income is actually really good but I have been offered 40 years of the income to transfer which makes sense to look at even in choppy markets. I could even park it in bonds and get a better return overall.

Spoke to someone about Canada QROPS but they look expensive.

Just don't want to have to buy an annuity and just been reading more on RRIF's and what I have to do later when I convert to one. I am already building a chunky RRSP here so I am going to look at a SIPP instead I think. No need to take income from that until age 75 and lesser amount. Plus a SIPP is a lot cheaper
Based on your personal circumstances, One thing to consider is that if you are married, on death funds within a RRIF will pass tax free to a spouse, whereas if the pension is in the UK, death after age 75 becomes taxable for the beneficiary.
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Old May 11th 2020, 6:12 pm
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Default Re: Uk pensions in Canada

exchange rates are a problem but if I kept it where it is I would have same problem. If I transferred to QROPS then I have to take exchange rate now and not waiting to a better time. Think there is not a lot of a winner in that one but I can wait till later and not take exchange rate now. (I also use transferwise and waiting on Revolut).

UK death taxes after 75 though would apply if my beneficiary is in the UK? think need advice on this bit... Beneficiary will not be in UK so that's the kicker. Think my wife can also just take over the SIPP on my death and just continue the income so just income taxes would apply

some advice needed I think and I'll contact someone. The Canadian adviser didn't seem to be able to offer a good solution for the UK advice I need as well which is another problem. I'll do some research
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Old May 12th 2020, 3:35 pm
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Default Re: Uk pensions in Canada

Coming on to a forum I thought I would get some comments from people in similar circumstance, not from people trying to sell me their services. Also, the below quote puts me off...

In the majority of cases, we do not charge for our services. Instead, we receive remuneration from the RRSP provider of the Canadian plan. Therefore, we do not have to charge our clients for helping them transfer their UK pension funds to Canada.

This suggests to me that you will receive commission from the pension as I have seen it worded this way before. That is a no go for me.
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