Pensions Locked in UK ? (1 Viewer)

[Yorick]

I keep seeing adverts and pop ups warning about pensions being locked in UK. I never open dodgy links, but it's got me thinking.

I'm 58 and got 4 pension pots worth around £200k. I'm applying for Spanish Residencia in next few weeks as we spend most of our time here.

Not planning to take my pensions for a while as they are all growing nicely.

Have I anything to worry about?

 

[maxi77]

I would equally be wary of those adverts, but a proper independent financial adviser should be able to help you. Portugal allows expats to have their pension taxed in Portugal at very attractive rates though this may restrict your visits to the UK. May well be worth looking into once your residencia is sorted, your local tax accountant is Spain should be able to advise you.

 

[Chris]

I found this https://www.ftadviser.com/retiremen...-traps-lurk-for-the-unwary-who-retire-abroad/

 

[WillH]

As above, get a good Personal Financial Adviser, we did and we've never looked back.

 

[42208]

I found this https://www.ftadviser.com/retiremen...-traps-lurk-for-the-unwary-who-retire-abroad/

Good article, thanks

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[ChrisL]

Currently if you intend to retire to any of the following countries your pension should not be locked, however i don't know if this will still be the case after Brexit.

Gibralter and Switzerland plus the EEA countries below.

• Austria
• Belgium
• Bulgaria
• Croatia
• Cyprus
• Czech Republic
• Denmark
• Estonia
• Finland
• France
• Germany
• Greece
• Hungary
• Iceland
• Ireland
• Italy
• Latvia
• Liechtenstein
• Lithuania
• Luxembourg
• Malta
• Netherlands
• Norway
• Poland
• Portugal
• Romania
• Slovakia
• Slovenia
• Spain
• Sweden

And also countries that have a reciprocal agreement with the U.K.

• Barbados
• Bermuda
• Bosnia-Herzegovina
• Jersey
• Guernsey
• the Isle of Man
• Israel
• Jamaica
• Kosovo
• Macedonia
• Mauritius
• Montenegro
• the Philippines
• Serbia
• Turkey
• USA

This information is from the Government website here

 

[maxi77]

Only the state pension is frozen if you move to unapproved countries. Private pensions are simply a contract between you and them so should not be frozen. As I understand it locked pensions are private pensions you cannot access till a predetermined age. Recent legislation has changed this to some extent.

 

[TheHat]

have a read

 

[Glandwr]

It appears unapproved countries don't include the Commonwealth.

Dick

 

[frogijock]

A civil service pension will be frozen if not approved country

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[DL42846]

When I was coming up to cashing in my pension pots I contacted a reputable financial advisor. I also shopped around myself and found much better deals with other reputable insurance/finance houses.
When I went back to the financial advisor and asked him why he hadn't suggested the ones I came up with he replied they didn't deal with them. I think it was due to the fact that they didn't get as much commision out of them.
When it comes round to cashing in your pension, trust no one and shop around.

 

[Yorick]

A civil service pension will be frozen if not approved country

Bugger. The missus was a teacher.

 

[maxi77]

A civil service pension will be frozen if not approved country

I think you will find that any government employment pension will be treated the same, ex service people have theirs frozen too though there have been some campaigns to change this but in the present climate don't hold your breath.

 

[sedge]

No decisions have been taken about pensions yet - it's not legal for insurance cos in the UK to cover, collect premiums or pay claims to foreign residents (and when you start to collect you pension that's the equivalent of a claim on anything ordinary) - unless the government of that country agrees to that being done. Obviously at the mo the EU is fine cos we're still in it - but once we're out - well - nobody knows what the situation will be.

My sister was a civil servant, and they moved to Australia where both their UK state old-age pension and her CC one were both paid when she eventually retired, but only at the level they would have been when they left and the rules were - they got no increases at all after that.

 

[Yorick]

I reckon the Govt will arrange something before Brexit. They can't afford to piss off a million voters living in Europe.

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[gus-lopez]

I reckon the Govt will arrange something before Brexit. They can't afford to piss off a million voters living in Europe.

Why not ? They've done it before.
Anyway if the state pensionis frozen to EU countries you just do the same as you can do now. Return ,take up 'residency' for a short while ,pension reverts to the rate at the time, then leave again.Just use the rules to suit yourself & treat them as they treat us.

 

[maxi77]

I reckon the Govt will arrange something before Brexit. They can't afford to piss off a million voters living in Europe.

You really think this lot care, they will just cancel the expat voters from the list, live here to vote. As for carrying anything before brexiteer, you are the ultimate optimist

 

[Silver-Fox]

I reckon the Govt will arrange something before Brexit. They can't afford to piss off a million voters living in Europe.

But will that million actually vote Tory?

Also saving a few quid may well be more important to them than votes that they might not get anyway.

 

[Yorick]

No decisions have been taken about pensions yet - it's not legal for insurance cos in the UK to cover, collect premiums or pay claims to foreign residents (and when you start to collect you pension that's the equivalent of a claim on anything ordinary) - unless the government of that country agrees to that being done. Obviously at the mo the EU is fine cos we're still in it - but once we're out - well - nobody knows what the situation will be.

My sister was a civil servant, and they moved to Australia where both their UK state old-age pension and her CC one were both paid when she eventually retired, but only at the level they would have been when they left and the rules were - they got no increases at all after that.

The moneys I have invested are not pensions yet. So does this mean I can withdraw the cash if anything goes wrong with Brexit?

 

[maxi77]

The moneys I have invested are not pensions yet. So does this mean I can withdraw the cash if anything goes wrong with Brexit?

Probably but depends on how it has been invested. You need to consult a professional. Whilst advice here is well intentioned it is mainly from the unqualified and a professional has a legal responsibility to you, you can sue him if he is wrong.

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[Yorick]

Probably but depends on how it has been invested. You need to consult a professional. Whilst advice here is well intentioned it is mainly from the unqualified and a professional has a legal responsibility to you, you can sue him if he is wrong.

Thanks very much. Now I know what I need to find out

 

[frogijock]

Bugger. The missus was a teacher.

She will be ok as Spain is approved being an EU country, after Brexit may be different