Maximise Your Retirement Income With A QROPS In Australia
Good investment choices and careful planning leading up to retirement play a significant role in ensuring you have the retirement income you need to provide financial security in later life. However, it is as equally important to make sure you are taking full advantage of tax benefits available to you as an expat.
If you are moving to Australia you may be considering what to do with your UK pensions to ensure you maximise your retirement income. While it may seem simpler to just leave them in the UK, this could cost you valuable retirement income in the long run and transferring your UK pension to a QROPS in Australia could have greater tax benefits.
Reasons to transfer your pension to a QROPS in Australia
If you were to leave your pension in the UK, you could still claim your pension benefit from Australia but as it would be paid in Sterling you would incur currency conversion costs and could lose out to unfavourable exchange rates. This may result in less income for your retirement and not being able to have the retirement you have planned for.
However, if you were to transfer your UK pension to a QROPS in Australia your pension benefit would be paid in Australian Dollar rather than Sterling, therefore removing any risk from unfavourable exchange rates and currency conversion costs. Removing this risk is just one of the ways a QROPS in Australia can help you maximise your retirement income. Other ways include:
- Reduced tax liability
- Increased flexibility of pension income
- Greater tax efficiency
Transferring your UK pension to a QROPS when you move to Australia can provide many financial and tax benefits and how these may impact your retirement income will differ depending on your unique personal circumstances. It is advisable to seek independent financial advice from an expat pension adviser, such as Prism Xpat, before making any changes to your pension plan, as a transfer is not always in your best financial interests.
At Prism Xpat, our team of specialist expat financial advisers can work with you to provide you with tailored advice to ensure you have the most effective strategy in place. Our advisers provide advice on all aspects of expat pension advice and have extensive knowledge and experience with transferring UK pensions to a QROPS in Australia.
Why seek expat pension advice?
Depending on your situation, seeking expat pension advice can help you manage the restrictions of the UK pension system and maximise your after-tax retirement income. Our team of advisers cover a range of expat pension advice and specialise in pension transfers to QROPS in a number of jurisdictions including Australia.
The benefits of seeking expat pension advice with Prism Xpat include:
- Advice covering the full range of QROPS as well as offshore bonds
- Full review of the relative merits of each option, taking into account Double Taxation Agreements
- Confidence that your advisory team has many years of specialist experience in international pensions
- Impartial advice backed by nationwide technical and compliance support, for extra peace of mind
Before making any changes to your pensions, it is advisable to seek specialist pension advice to ensure you have the most effective pension planning strategy in place. At Prism Xpat our expat pension advisers can provide advice on all aspects of pension planning when moving abroad, including QROPS in Australia.
At Prism Xpat, as an international financial advisory and expat pension advice specialist, our experienced team of advisers can support and guide you through all the options available to you for your pensions when you are moving to Australia, including transferring your UK pension to a QROPS.
Please contact us at welcome@prismxpat.com or by phoning +44 345 450 4004 for further information, or to have a free, no-obligation chat about your own circumstances.