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Uk pensions in Canada

Uk pensions in Canada

Old Aug 12th 2020, 3:52 pm
  #121  
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Default Re: Uk pensions in Canada

Originally Posted by Atlantic Xpat View Post
Yeah, that's what I figured. I'll just have to hope that the buyout for final salary schemes will still be worthwhile in 3 years!
Probably even more wothwhile! Employers are VERY keen to rid themselves of the long term reserving liability of final salary pensions! If the value is greater than £30k, you will need UK financial advice before they will transfer out of DB
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Old Aug 12th 2020, 5:37 pm
  #122  
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So glad I did mine 10 years ago
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Old Aug 13th 2020, 11:35 pm
  #123  
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Default Re: Uk pensions in Canada

Originally Posted by Atlantic Xpat View Post
I asked my FA (Who sells IA products through their Fundex subsiduary) about QROPs. He had to seek info from head office as he'd not come across this before. (Not surprising really).
He received a response and forwarded on some detail to me - checklist, process etc. One thing that jumped out and I quote directly from the IA Clarington document:

Q: What is the minimum age to establish a QROPS
at iA Clarington?
A: The client must be 55 years of age or older, per
our agreement with HM Revenue & Customs.


I'm 52, so don't meet this criteria. I understood, perhaps incorrectly that one could move their UK pension into a QROPs at any age, but not access it before a certain age. Is the minimum age quoted an IAG thing or a UK Revenue requirement?

mjwalker007 ?
Hi Atlantic Xpat

Hurlabrick has pretty much covered everything above
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Old Aug 14th 2020, 1:16 pm
  #124  
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Default Re: Uk pensions in Canada

Originally Posted by mjwalker007 View Post
Hi Atlantic Xpat

Hurlabrick has pretty much covered everything above
Thanks to you and Hurlabrick. Makes sense. I'll worry about it in 3 years then.
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Old Mar 21st 2021, 3:52 am
  #125  
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Default Re: Uk pensions in Canada

Hi all
Is it worth transferring a UK SIPP to Canada via a QROPS or better to keep in UK? Sounds like a very onerous process...
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Old Mar 21st 2021, 1:06 pm
  #126  
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Default Re: Uk pensions in Canada

Originally Posted by holdenpat View Post
Hi all
Is it worth transferring a UK SIPP to Canada via a QROPS or better to keep in UK? Sounds like a very onerous process...
Entirely your decision! If you use an adviser over here (eg Sterling Financial), they are experienced in this and do all of the work. If you DONT transfer, you are taking on the currency fluctuation risk. If you are going to make Canada your permanent home, then I certainly would.
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Old Mar 22nd 2021, 4:33 am
  #127  
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Default Re: Uk pensions in Canada

Many thanks for reply. I'd consider transferring if there is a pension in Canada similar to a SIPP in UK where you can drawdown from 55 and choose all your own investments. All my stuff is dollar denominated so currency fluctations aren't a huge issue.
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Old Apr 9th 2021, 12:06 am
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Default Re: Uk pensions in Canada

Originally Posted by holdenpat View Post
Many thanks for reply. I'd consider transferring if there is a pension in Canada similar to a SIPP in UK where you can drawdown from 55 and choose all your own investments. All my stuff is dollar denominated so currency fluctations aren't a huge issue.
I would leave my investments within the British SIPP and start a separate RRSP in Canada. In fact, that is exactly what I did.

Right now there are just 3 options to transfer from SIPP to Canadian RRSPs: https://www.gov.uk/guidance/check-th...on-list#canada

While the concept of RRSP is very similar to SIPP and you can withdraw at 55, not one of the 3 options available in Canada look attractive. Based on a quick review, these three companies offer high charges and a very restricted list of funds. These ongoing charges will be on top of the costs to transfer your money to Canada. In addition they impose constraints that go beyond a normal RRSP wrapper. For example you may need to file a return in the UK if you withdraw from these accounts within 10 years of the transfer.

Agree that currency risk isn’t an issue, as long as your are invested in equities rather than treasuries. When you start drawing down from your SIPP, you will incur some currency exchange costs, but they will be very small compared to going through ROPS.

Keep monitoring the situation; rules for ROPS change quite regularly.

In Canada, in addition to RRSPs, you can use TFSAs for your “retirement” investment. The latter is similar to ISA. https://www.finiki.org/wiki/TFSAs_versus_RRSPs

Most banks have discount brokerages which offer much better value than the 3 companies selected for ROPS. There also independent discount brokers like Questrade and Qtrade https://www.moneysense.ca/save/inves...ers-in-canada/



Last edited by Mordko; Apr 9th 2021 at 12:10 am.
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Old Apr 9th 2021, 1:33 am
  #129  
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Default Re: Uk pensions in Canada

Agree with previous comments. To pay 2.5% fees for funds in Canada is crazy. Not that I have any choice as I moved our UK SIPP pensions into income drawdown and withdrew 25% tax free cash before emigrating. We transfer money over whenever exchange rate is better than $1.75 to the pound via transferwise.com
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Old Apr 9th 2021, 5:44 am
  #130  
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Default Re: Uk pensions in Canada

Very sage advice Mordko and glendem-- gratefully received, thank you. I'll keep my pension in the UK for now. I did have one niggling worry about handing over the pension to my missus if anything happened to me.... I understand that the UK makes it more difficult than Canada?
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Old Apr 9th 2021, 10:58 am
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Default Re: Uk pensions in Canada

Originally Posted by holdenpat View Post
Very sage advice Mordko and glendem-- gratefully received, thank you. I'll keep my pension in the UK for now. I did have one niggling worry about handing over the pension to my missus if anything happened to me.... I understand that the UK makes it more difficult than Canada?
While I have no personal experience of “anything happening”, there is no obvious reason why it would be more difficult to inherit a SIPP. Make sure you have a beneficiary. Taxation will be based on Canadian rules.

https://www.onlinemoneyadvisor.co.uk...ps/sipp-death/
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