Why Do You Need an International Pension Transfer Specialist?

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Why Do You Need an International Pension Transfer Specialist?

23:50 01 February in Blog

In a world of ever-increasing global mobility, investment goals and retirement policies of several who have moved to work overseas from the UK are under increased focus. With people moving around the world for work and settling down in new countries, there is a requirement for specialist expertise in helping these people deal with their finances and pensions successfully, especially where these are assets are located abroad. International pension transfer specialists help the expatriates and others to deal judiciously with their finances to achieve their pension goals and objectives.

The job of an international pension transfer specialist is to help guide investors through the complexity of international financial and pension decisions, and where relevant to transfer assets relating to pension and others across international borders. The transfer of pension funds across boundaries usually requires advice (especially where final salary pensions are involved) and a strong understanding of the client’s financial priorities, objectives, residency situation, tax differentials and investment risk profile. Once it has been decided that a cross border pension transfer should be undertaken, the process commences to ensure that the implementation of the international pension transfer is properly undertaken. This needs a thorough review to ensure a seamless transaction to provide the required outcome. This is only possible with the help of experts who have an in-depth knowledge of international pension policies and transfer procedures.

Every country has a different law and therefore, requires experience in closing or re-opening pension plans when they move along the international borders. Pension advisors will also usually help in setting up investment strategies for any transferred pension and therefore, help the clients to make well-thought over investments in line with their risk profile and properly working for their retirement.

The benefits of an international pension transfer include reducing exchange rate risk, protecting death benefits for dependents, significant tax savings through having your pension in your local (or a more favourable) tax jurisdiction, or gaining flexibility on how you use your funds in retirement. Disadvantages can include forgoing a guaranteed income stream, loss of inflation linking, or in some cases paying additional taxes. Whilst the benefits of a transfer can be significant, professional advice should be sought in each case as each client’s situation is different and a transfer is not always in your best financial interests.

As well as transfers, many international advice specialists can also aid in building a successful portfolio for further investment of non-pension assets in the new arena. Since it is about the years of hard-earned money, it is essential to ensure that these funds are properly invested.

All it takes is a call to an experienced international pension transfer specialist to help you make an informed decision as part of preparing for what for many will be their best stage of life – the exciting phase after the long years of well-managed jobs and transfers have been completed.

Should you have any questions or wish to discuss further, please contact us and we will be happy to assist.