We’ve all read the headlines whether it was in the Economist or the Daily Mail. The situation in the UK could be described as far from perfect, with London’s FTSE 100 Index members alone having a £17 billion deficit. For any individual with a UK pension this can sound extremely worrying, then add the political uncertainty of Brexit and the resulting implications this will have on the UK, the next questions is obvious.

Is my UK Pension safe?

A complex question inevitably has an equally complex answer, put simply, it depends on the sustainability of the scheme.

What if my UK pension scheme is in deficit?

If your UK pension is in deficit there are options available to you, the most beneficial is a SIPP (Self-Invested Personal Pension).

What can I access?

Many packaged pensions offered by insurers only provide access to a limited set of funds and charges can be high. A SIPP enables a much wider selection of investments so you can take control of your pension and choose the investment strategy. You can hold funds, investment trusts, corporate bonds, shares and cash. Niche investments are also available through a SIPP such as gold bullion, derivatives and commercial property, the choice is completely yours. You are now in control of your pension.

Are their tax benefits?

Yes. It is a tax wrapper. SIPPs grow free from Income Tax and Capital Gains Tax.

I’m not British, can I move my UK Pension?

It does not matter if you worked in the UK and contributed to a private UK pension you are also able to transfer your UK pension into a SIPP.

What Should I do next?

Get in touch! Let’s find out the sustainability of the scheme and make a plan of action.

 

Written by Nick Joslin
Adviser &  Associate
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