mariettajohn

Recently I have been bombarded with experts trying to get me to unlock my UK pension, my pension was frozen in 1983 when I left the UK to live in the US, my first reaction is to be very careful, nobody does anything for nothing.
But they did make me aware that the law changed a few years ago, and I can in fact unlock my funds and transfer them. It would seem to be complex, but here is what I would like to do, I would like to take a 25% of the transfer value and put it into a Bank account in the UK, and the rest into a personal retirement account in the UK.
My parents and brother are still alive and live in the UK, so I am happy leaving the accounts over there, I used to have bank accounts in the UK but not anymore, I have a UK (euro) Passport, and am English, can anyone tell me if this is all possible, and do I need to have someone do this for me.
Many thanks

thinbrit

I thought you could only transfer them from one pension fund to another pension fund. Are you saying you can now get at the money before retirement age?
You received tax relief on your pension contributions, so I'd imagine even if you could get at them before retirement age there would be tax implications.

mariettajohn

You can, but after the law changed it is possible to get a 25% lump sum of the transfer value, without any tax implications as long as you are 55 or older, at least thats the way it was explained to me

im9907620

You can actually do this from age 50 but that window is closing in April and the minimum age to retire in the UK will be 55 (unless your plan rules state otherwise). If you do take your cash then the rest will be moved into something called Drawdown - can be expensive for smaller funds (e.g. < £75K) and you have to remember that your fund remains invested and open to the elements so to speak, so you need to know what risk/reward you can tolerate.
Your other options would be to move it to an offshore pension - again not for smaller funds, though there is the possibility of accessing 100% through certain offshore plans called QROPS but good advice is required as there will be tax implications in the US (should you declare it of course .

chartreuse

Hasn't there been a lot of discussion on here, all trending towards the view that any so-called QROPS provider who claims he can xfer your UK pension to the USA, without you taking a hit, is a liar?

im9907620

As far as the poster is concerned, there seems little point in taking 25% tax free cash just to sit in a UK bank account unless they are going to use/spend it, when it could be left to accumulate further tax free in their pension pot.

Whilst there are a couple of QROPS plans that will seemingly allow you to draw off 100% under certain criteria, most will only allow 25%.

For the avoidance of other readers doubt, there is NO transfer possible to a US plan (never has been, probably never will be). There is only an option to cash out (as mentioned above) and this IS declarable on a US tax-payer's return, not to mention a possible penalty if aged under 59.5, whether brought back in to the US or not.

It is the individual's decision whether or not to declare such a lump sum but a good adviser should flag this up as a pre-cursor to any decision. I am aware of others on here who have/are taking the 100% lump sum and not declaring but ultimately it is their decision.

Hope this helps.

David and Cathy

Hello
I would suggest you take specialist advice from a regulated individual on this before you do anything. There are many options and the benefits and consequences will depend on your individual circumstances and the nature of the pension. I can put you in touch with a qualified individual if you wish.

Uncle Ebenezer

I was going to post a thread on this, though a slightly different tack.

The pension provider I am with in the UK points out (and I would presume this is the same, whichever company you are with) that they can only pay the lump sum, and the remaining regular pension amounts, into a UK bank account in your own name. This is obviously a problem for me and the OP. Also, from what I can glean, the only way to open said bank account is to be able to prove a UK address - recent utiility bill, tax statement etc.

Obviously there are private banks and offshore sterling accounts, but the sums involved here are hardly worth the hassle of keeping a minimum amount in the account and paying monthly service fees.

Our situation can hardly be unique - anyone out there with any suggestions based on similar problems?