A lot of people have decided to make the most out of their retirement by moving overseas which is completely understandable. After all, after years of working hard and living in the same environment, it is finally time to enjoy everything you have worked for by seeing the rest of the world.
However, there are still some things that you would have to consider in moving abroad, especially when it comes to transferring your pension scheme. Here are a few of them:
- Should be recognized. There are overseas pension schemes that are not recognized by your pension provider. In this case, your pension scheme may refuse to make the transfer, or you could be heavily taxed by up to 40% just to make the transfer possible. It is best to consult pension transfer experts like Tim Carroll UK Pension Transfer to find out more about this.
- Frozen countries. There are 150 countries where your pension will be considered as “frozen.” This does not mean that you don’t get your money anymore. However, this would also mean that you do not get to maximize your pension’s potential growth because it will be frozen at the rate that was initially paid. Going to countries where your pension will not be frozen will allow you to be flexible as your pension will follow increasing rates to keep up with inflation and other factors. Again, a pension transfer expert should be able to give you advice on which countries would give you the best value for your money.
- Taxes applicable. There are a number of taxes that may be applicable should you decide to transfer your pension scheme. These taxes could be charged on any unauthorized payments made or on lump-sum payments if they are paid from a UK pension scheme.
If these points seem confusing to you, you can ask Tim Carroll Pension Transfer to guide you through the process. This way, you do not only maximize your pension scheme, but you also get to enjoy a more or less worry-free retirement.