Robinclarke1960

Hello,

I've been contacted about transferring pension out of UK and the benefits. Has anyone done this or been contacted about the same thing? Who was it and was it a good decision?

Rob

Pulaski

Who contacted you? Was it by any chance a company that rhymes with De Beers?

Robinclarke1960

Haha yes! A quick google showed that maybe they give their advice while on de beers... What has been your experience?

mikelincs

Not sure why you would want to, the UK will pay you direst to your Spanish bank, with a better exchange rate then you could get yourself. better to leave it there and not pay someone to move it for you, and, should you need to move back to the UK you wouldn't have to pay again.

Robinclarke1960

Mike,

Thank you for your response, you seem to know what you are talking about much more then me.
Been doing my research and i know a QROPS is only beneficial if I dont move back but a SIPP could be more tax efficient. Sorry I know you arent an accountant. Just wanted to know if anyone has done it and had good or bad dealings

Pulaski

Even a barge pole wasn't long enough.

They are litigious and have a reputation for aggressive sales practices and targets for their salesmen. Google their name and you'll find there is a load of negative news about them, notably fees so high that pension funds are known to decline in value year-on-year. They trawl the Internet looking for potential customers victims, and spin all the improbable negatives of doing nothing, even though doing nothing is the optimal strategy for most British citizens because of the high degree of protection for pensions under UK law.

So, to cut a long story short, I haven't moved my pension investments, and don't know of anyone who would be best advised to do so.

Rosemary

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

Robinclarke1960

Pultaski, thank you! I know for sure not to speak or listen to them then, crazy how I am already being contacted!
And Hello Rosemary, thank you for the warm intro

Pulaski

I forgot to mention that as a result of legal threats, if you try to post their name on BE it is changed to a row of *'s. Way to go that their working assumption is that most mentions of their company on BE will be negative!

snikpoh

We are about to QROPS one of our UK pensions because very shortly (once the UK is out of the EU), it will become VERY expensive and leave us with very few options.

By doing it now and transferring it to an overseas pension plan in, for example, Malta, you are in control of it and you save lots of tax.

I would suggest the OP takes professional advice (we use https://www.abbeywealth.com/)

Pulaski

Where does the huge tax saving come from, given that pensions grow tax free in the UK and pension income is usually taxed when drawn based on where you are living? I am interested.

Otto The Squid

There are no tax savings as I am sure you know

I am struggling to find that firm on the https://www.cnmv.es/Portal/Consultas...orEntidad.aspx Being on this register is a requisite for the provision of investment advice.

snikpoh

If you are going the QROPS route, then it's best to do it now as there's a new 25% tax charge on transfers to qualifying recognised overseas pension schemes (QROPS)coming in soon. See the 2017 budget report for more detail on this.

Otto The Squid

Sounds like a salesman's quote. The 25% tax charge applies now, potentially. Anyone in Spain that moves their pension to a QROPS ( Where is the tax saving? ) in the EU needs to be absolutely 100% certain that they will not be moving back to the UK within 5 years or they could get hit with 25% tax on the fund if they return after the UK leaves the EU/EEA. Given all the uncertainty with QROPS, the Budget rules and Brexit, I think a hasty move to a QROPS may not be a good idea.

Robinclarke1960

Good morning everyone. Thanks for all your feedback. Snikpoh after speaking to people, the QROPS change in legislation came in, in March so it is only worth it if you are never going back to UK. There are apparently ways to hold it in Malta though. The most cost-efficient way and most sensible so you can take control and not be given any rubbish is a SIPP. If you want I can send you the info