So, with just over two months to go until Britain leaves, where do you stand with your pension and Brexit – and should you take steps to safeguard it?
There are approximately 120,000 Irish residents who have British pensions as a result of having worked in the United Kingdom. As some of these pensions could be among the most vulnerable due to the UK’s imminent departure from the EU, many are concerned that
Brexit could devalue their pension. Kieran Hurley QFA, Senior Financial Adviser at ODM Financial Advisers, provides some background on the benefits of transferring your UK pension and the options available to you.
Who might consider a UK pension transfer?
A UK pension transfer to Ireland applies to a number of people. While many believe that it addresses only those who have lived and worked in the UK in the past, it also applies to those who may never have lived in the UK yet are owners of an Irish private pension that is heavily exposed to British investments. In addition, the transfer is worthy of serious consideration by those who are looking to consolidate their Irish and UK pension benefits and also those looking to put their financial affairs in order (“succession planning”).
Why transfer your UK pension?
There are a number of benefits for transferring your UK pension back to Ireland. Firstly, it will provide you with greater control over your investment, where these funds are invested and in a way that suits your risk appetite. Secondly, it reduces your exposure to currency fluctuations. In addition, investing your pension back in Ireland makes it easier from an administrative perspective while also providing some peace of mind following years of Brexit ‘fatigue’.
So what are the options?
QROPS (Qualifying Recognised Overseas Pension Schemes (QROPS) is an umbrella term for a pension product, which has been registered with Her Majesty’s Revenue & Customs (HMRC), that accepts pension transfers from the UK without triggering a UK tax charge.
There are some Irish Life companies offering a product to Irish residents that transfers their UK pension back to Ireland, investing in what is called a Buy Out Bond. A Buy Out Bond is an individual pension bond established in your name. Typically, it allows the transfer of pension benefits into the bond if you leave a company pension. In this case, the Buy Out Bond is for those who have left the UK or wish for their pension to leave.
Transferring your pension funds back to Ireland can depend on a number of factors including one’s residency situation and pension age (clients cannot take benefits before age 55). With many Irish life companies offer such a product, we can offer impartial financial advice and help you choose the right solution for you. Speak to Kieran Hurley or Siobhan Donegan on 023 8842700 or alternatively drop us an email firstname.lastname@example.org and we will contact you immediately.
Disclaimer: All data and information provided within this article is for informational purposes only. ODM Financial Advisers makes no representations as to the accuracy, completeness, suitability, or validity of any information and will not be liable for any errors, omissions or delays in this information or any losses, injuries, or damages arising from its use. ODM Financial Limited t/a ODM Financial Advisers is regulated by the Central Bank of Ireland.