Our award winning advisers tell you about SIPPs,
the story of Tax problems, a QROPS disaster in the USA and how you can avoid being a loser!
5 key questions you need to ask yourself if you have already transferred your pension:
Did you receive free advice to transfer? (The Provider paid your fee)
Did you transfer for “tax reasons” OR do you hold a QROPS in Malta or Gibraltar?
Your original adviser was not the same person who authorised and signed off the pension transfer?
Are your pension assets held within companies such as RL360, or Investors Trust?
Are some or all of your investments locked away for a minimum time period?
If you answered ‘Yes’ to at least 3 of these, you should take action, or you will lose out in your future retirement.
If you answered ‘Yes’ to all 5, then the chances are you have already lost part of your retirement fund, and compromised your future retirement plans. You need take action immediately.
If you hold an existing British pension, are a US resident and have not yet transferred, you want to know your best options.
5 key questions you need to ask yourself if you hold a British pension:
Do you know if you should be declaring it in the USA and paying tax?
What are the best ways of accessing your pension tax efficiently?
Is your “tax free” lump sum actually taxable in the USA?
Can you transfer your British pension or will that cause a tax charge?
What are the best way to hold investments and can they be in dollars as well as sterling?
If you do not understand the significance of these questions you need advice now! We offer a British Pension and USA QROPS review for expatriates including International SIPP advice.
Nigel, not his real name, was sold a QROPS on the basis that it would be better for tax, more flexible access, highly protected and would remove it “from the clutches of the Treasury” in the UK.
What was Nigel told?
He was told it had a 1% annual charge plus trustee fees of €500 per annum. He was promised double digit returns if he locked part of his money up for 6 years.
What happened next?
If Nigel’s story is your story, then his outcome could be your outcome. Nigel lost his pension and his retirement was destroyed.
What should you check now to avoid this?
Nigel did not know what an insurance bond wrapper was. Why would he and why would you? However, it is critical.
You will have been told an insurance bond wrapper is an investment bond or fund platform or investment manager or tax efficient vehicle. There are many ways to describe it, but it can be a force for good or one of the most damaging products you can own. It’s also completely unnecessary in a QROPS or a SIPP!
How bad is your problem?
If an insurance bond is unnecessary, why would it be sold to you inside a QROPS or SIPP. Remember question 1 above, and the idea that you did not have to pay for advice? The insurance bond wrapper can pay a large commission to unscrupulous salesman. Along with other commission products it can be up to 13% of your fund.
Nigel lost most of his money in his QROPS. He had no reason to think that he had any problem until the salesman disappeared. He had been lied to by his adviser and the chances are, if you are like Nigel, and your salesman is telling that the charges are only 1% per annum, then your salesman lied to you as well.
What is the solution if you have transferred for tax reasons?
If you are concerned about your British pension and you hold a QROPS / International SIPP, or the person who sold it to you has disappeared, or you are only contacted to “switch” your investments around (generating more commission) then:
You should stop switching funds immediately.
Avoid locking your funds into further 5 or 6 year term investments.
You should contact your trustees to find out your insurance bond surrender penalty.
You should ask your trustees why they permitted your pension to be invested in an insurance bond, and also what due diligence they did on the adviser who gave the advice they followed.
Ask for a professional to assess your risk and target for retirement. Consider for tax reasons moving any pension back to the UK?
Ensure your professional is registered with the regulator in your country AND openly declares third party connections in other regulated territories AND allows you to vet them.
Avoid further loss of your future retirement income, or risking tax penalties, by taking action now.
Watch our video
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Over the last 20 years we have wanted to change the status quo by focusing on making life better for consumers. Ferocious independence, due diligence, robust research, strict governance and procedures aligned with transparency on fees, charges and the “truth” have helped establish us as the “go to” award winning financial adviser.
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