There are two options to consider if you want to transfer your pension overseas. The first is to transfer your pension pot to a pension scheme in the country you move to, or to leave your pension pot in the UK and send yourself the funds as and when you require them.

Most retired expats prefer the second option, as it offers the UK pension scheme’s protection while still allowing you to access the money you need to fund your lifestyle abroad. You’ll need to be able to make international payments easily and cost-effectively, and you can do this with a Moneycorp personal account.

If you want to transfer your pension abroad to another scheme, you’ll need to transfer it to a Qualifying Recognised Overseas Pension Scheme (QROPS). These are schemes that meet HMRC rules to receive transfers of funds from UK-based registered pension schemes. While doing this can have benefits, there are potential tax implications.

In some cases, you can transfer to a QROPS without paying any tax, while in others, you need to pay 25% tax on the transfer.

 

Transferring your pension abroad from the UK to a QROPS

Use Moneycorp’s step-by-step guide to transfer your pension abroad from the UK.

 

Find a QROPS

Once you’ve done your homework regarding pensions, tax, and living abroad, and you’re ready to start arranging your pension transfer, start by looking for a suitable QROPS in the country you want to retire to.

 

Check whether your UK pension scheme allows transfers

The second step is to check whether your pension provider in the UK allows transfer to pension schemes abroad. Your provider should allow this if you want to transfer to a QROPS. Double-check if there are any special conditions, costs, or tax implications before you set up the transfer.

 

Complete Form APSS 263 and submit it to your UK pension scheme administrator

The third step is to download Form APSS 263 from the UK Government website. Complete the form before submitting it to your UK pension scheme administrator.

 

Transferring pension payments abroad from the UK

Follow these steps if you simply want to receive your pension payments in your new home without transferring your pension pot to a QROPS in another country.

 

Choose the best method for transferring pensions when moving abroad

Whether you receive regular payments or have access to your full pension pot in the UK, you need to find the best way to send money from your UK bank account to your account in the country you move to. One way of doing this is to send the money via your regular online bank account, which can be costly. A more sensible option is to use a reliable foreign exchange provider and payment service such as Moneycorp. This will give you access to competitive rates, low fees, easy-to-use money-sending services, and products that can help you to protect your money, such as forward contracts that let you lock in the prevailing exchange rate for up to two years.

 

Decide whether you want to send one large payment or regular transfers

If you have access to your full pension pot, your next step is to decide whether to send the whole lot in one go, or to set up regular international transfers between your UK and foreign bank accounts. You can do either with a Moneycorp account.

 

Transfer your pension with Moneycorp

Transfer the pension money you want to send abroad from your bank account to your Moneycorp account. Log in to your Moneycorp account, select the Send Payment option, and then select Add New Recipient. Select the country in which your foreign bank account is located and choose the currency you would like to transfer. Specify your full name, address, and bank account number. Provide an IBAN, BIC/SWIFT code as well as any other codes or numbers required by the foreign country. Select the Save button to save your foreign banking details in your Moneycorp account. Enter the amount you want to send as well as the date on which you would like the money to arrive and confirm the transfer.

 

Sign up for a Moneycorp personal account

Transferring pensions when moving abroad is made much simpler with Moneycorp. Sign up for a personal account with Moneycorp and enjoy greater control over your money while taking advantage of our foreign exchange products, low fees, and competitive exchange rates.