Retirement Planning | Ross Naylor

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How do I apply for an NT Code for pension income?

An NT (No Tax) code is granted to individuals who receive UK-sourced income and reside in a country that has a double taxation agreement (DTA) with the UK. [Note, for expats in Europe these rules still apply after Brexit, as these tax treaties were made outside of EU legislation.] The code allows you to receive UK pension income, without having tax deducted at source.

Have you lost your job before you are ready to retire? Here is what to do

One of the biggest threats to a well thought out expat retirement plan is losing your job before you are ready to retire. You have it all planned out. You are hitting your peak earning years. The costs associated with raising children have started to decline. Now is the time to start socking away some serious funds to boost your retirement… and bosh!!!! Out of the blue, you are staring at a P45. Your employer may have imagined that they…

3 Different Ways to Access Your Pension

Pension flexibility, introduced in 2015, provides those wishing to access their “defined contribution” pension funds with a wide choice of options. Now, as well as buying an annuity, there are two other methods called Flexi-Access Drawdown (FAD) and Uncrystallised Funds Pension Lump Sum (UFPLS). But which option to select?

Can I transfer my UK pension to Poland?

For Brits living in Poland (or Poles who have returned home after living in the UK), one of the big questions involves what to do with any pension schemes that they have accumulated in Britain. This issue has become even more pertinent in the aftermath of Brexit and the additional uncertainty that it has brought to the table. Firstly, unfortunately, the answer to the question of whether you can transfer your UK pension to a scheme in Poland, is, no…

Should I take a lump sum from my pension? 4 reasons why you should think twice

It is common for those reaching age 55 to withdraw the maximum 25 per cent tax-free cash lump sum from their pension. Many do so in order to splurge on the holiday of a lifetime, make home improvements, pay off a mortgage or help out children or grandchildren. However, the question should be asked: would people be better off leaving that money invested and withdrawing their pension gradually over a longer period instead? Here are 4 instances where the answer…

A deeper look at inflation

With UK inflation at 5.5%*, quite simply, if you are saving for retirement your money is going to have to work harder to keep its value Let’s say you were planning to retire on savings of £500,000. If prices go up by 10% before you retire, you’ll need to save an additional £50,000 to have the same retirement you had planned for. This means that either you will have to save more or you will need to delay your retirement.

What is a spousal bypass trust and who should use one?

Legislation introduced by the Taxation of Pensions Act 2014 meant that, in the majority of cases, pension benefits are able to pass down through the generations free of inheritance tax, as long as they remain within the pension wrapper. Therefore, if you have a straightforward family situation and are leaving funds to beneficiaries that you perceive as responsible, then passing these funds on within your pension is likely to be the best option.

QROPS guide for expats – Read to understand your options

The purpose of this QROPS guide for expats is to use 20+ years of experience in dealing with international pensions to help you understand how QROPS work and outline the circumstances in which they should and should not be used. Tens of thousands of British expats have transferred their UK pensions to QROPS structures since they were launched in April 2006. The structure has proved to be incredibly popular as they help Britons who have permanently moved abroad to simplify…

How are defined benefit pension transfer values calculated?

In the past decade, huge numbers of people have transferred their final salary/defined benefit pensions to a SIPP or QROPS as Cash Equivalent Transfer Values have soared. However, since the start of 2022, these valuations have started to fall back and I have had numerous enquiries from people wanting to know why their pension transfer value has dropped. In this post, we will look at the nuts and bolts of how a defined benefit pension cash transfer value is calculated.

Six things you can do with your pension from age 55

Prior to April 2015, retirement options for those who had a personal pension or self-invested personal pension (SIPP) were fairly limited. You were able to take a pension commencement lump sum equivalent to 25% of your pension fund, which was tax-free, and the rest had to be used to purchase an annuity that would provide you with a set income for life. However, since then the rules have changed and there is now a lot more flexibility if you have…

Is this the end for the Triple Lock?

Currently, those who are in receipt of UK State Pension and resident in the UK or certain overseas jurisdictions, are protected by something known as the “triple lock”.

What is an international SIPP?

A Self-Invested Personal Pension (SIPP) can be a low cost, flexible and straightforward way to save for your retirement. It allows you to take control of how your pension funds are managed by providing access to a wide range of different investments.

Should politics influence your retirement plan?

It is hard to avoid politics these days. Whether it is Brexit, Trump, BLM or the merits of how different governments have responded to the pandemic, the political coverage is relentless. With widely polarised opinions and 24-hour news reporting, it is natural to wonder whether political considerations belong in your retirement plan.

Retirement planning lessons for expats from Robert de Niro

According to an article in the magazine Page 6, even Robert de Niro’s finances have been affected by COVID19. The issue is his stake in the restaurant and hotel chain Nobu. Obviously, their venues have been closed or partially closed for months with barely any business coming in. This has dealt a big blow to his finances. According to his lawyer, Caroline Krauss, Nobu lost $3 million in April and another $1.87 million in May.

Pension access options for expats who are considering retirement

If you are an expat of age 55 or older and you are unsure about how to access your retirement savings, then the good news is there are a number of options open to you. There is certainly a lot more flexibility in this respect than when I first started advising British expats on their retirement options 20 years ago. However, alongside greater freedom in how you access your pension comes the need to make an informed decision as to…

European Commission Pension Scheme – 10 year rule and transfer options

There is a pension scheme available for those working for the various EU entities. It is a Defined Benefit scheme. This means that when you retire, you are guaranteed an income, based on your length of service, until you die. In addition, if you pass away before your partner, they will receive a reduced monthly payment, known as a Survivor’s Pension, until they die.

Can I afford to retire?

You may be keen to start learning new skills and exploring the world. Alternatively, as an expat, you may have had enough exploring the world and may be keen to settle in one place. You may have lost your job or may need to stop working due to health reasons. Or you may need to retire in order to care for loved ones. Whatever your reason, the question that you have on your mind is “can I afford to retire?”.

Should I accept a Pension Increase Exchange? The pros and cons of PIE offers

With many of the UK’s biggest private-sector employers struggling with pension deficits, growing numbers have approached their workforces with pension increase exchange offers. These proposals, also known as PIE offers, are deals to buy out some of the inflation proofing on your future pensions, in exchange for a bigger starting, but flat, income.

How to claim UK State Pension in Poland

If you have been making social security (ZUS) payments here in Poland, then you need to claim your UK state pension here too. If you have not made social security payments in Poland, then you will need to claim your pension through the International Pensions Centre in the UK.

Expat pensions after Brexit – What can we expect?

For better or worse, we now know that Brexit is definitely going to happen (or has already happened if you are reading this after 31st January 2020). As a result, I want to look at how expat pensions might be affected now that Brexit “is done”. In particular, I will review the potential implications for expats who have UK pensions and who have already retired or plan to retire in the EEA.

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