Canada – a wide range of pensions schemes available for British expats – understanding your options
Currently, there are over 674,000 British expats living in Canada. Many of these expats are attracted to Canada due to its exemplary healthcare system, vibrant tourism industry and cultural heritage as well as its variable climate and low crime rates. However, one of the main benefits that entices British people to emigrate to Canada is the wide range of attractive pensions schemes available for expats. So if you have recently emigrated to Canada and have been considering a UK pension transfer, listed below is some targeted expat financial advice regarding the ways in which you could stand to benefit by transferring to a QROPS:
What types of pension benefits can be transferred?
Any permanent resident or citizen of Canada has the right to move any type of British “retained pension benefits” to Canada or abroad, including: private company pension schemes, personal pensions, stakeholder pensions and defined benefit pension plans. These types of British pension schemes can only be transferred on a tax-free basis to a registered pension plan that is formally recognised by HMRC as a Qualifying Recognised Overseas Pension Scheme (QROPS). Therefore, it is strongly recommended that you seek professional advice from a Harrison Brook financial adviser who has specialist experience working with expats in Canada.
How will your British State Pension be affected?
It is worth bearing in mind that your British State Pension cannot be transferred to Canada. However, once you have lived in Canada for at least 10 years and after you have turned 65 years old, you will be eligible to access the means-tested Canadian pension scheme.
What are the benefits of transferring to a Qualifying Recognised Overseas Pension Scheme (QROPS)?
There are numerous advantages for British expats of transferring their various British pension schemes to a singular pension plan. For instance, by taking advantage of a UK pension transfer Canada (QROPS), you will be able to invest your retirement funds into different countries; thereby alleviating yourself from ongoing currency exchange fees and possible currency fluctuations which could reduce your retirement funds over time. Furthermore, a QROPS can also provide additional safeguards to protect your beneficiaries. More information can be found on our dedicated QROPS information page.
Expats in Canada should seek international & regulated financial advice to make sure they have the most efficient UK pension transfer Canada (QROPS) to fully exploit their time on foreign soil. So take the first step and get started with Harrison Brook.