Retiring abroad can be a daunting task but luckily, deVere Malaysia are here to help you every step of the way.
Ensuring you financial stability and security is our priority, and our dedicated team of financial advisers are on hand to find the best solution for all the financial predicaments you may face. Our experts will also answer any questions you have regarding retirement planning, including:
-
When should I start saving?
-
What are the implications of delaying my savings?
-
How much should my contributions be?
-
Am I contributing enough?
-
How much am I likely to receive?
-
Can I be more tax efficient and pay more in?
-
Our expert and impartial financial advice is specifically tailored to suit the needs of expatriates who are planning to or who have relocated abroad.
Some of the options available to expats who plan to retire abroad include:
-
Self-Invested Personal Pensions (SIPP)
-
Qualifying Non-UK Pensions (QNUPs)
-
Trustee Schemes
-
QROPS
-
Regular savings plans
-
Can I be more tax efficient and pay more in?
-
Our expert and impartial financial advice is specifically tailored to suit the needs of expatriates who are planning to or who have relocated abroad.
SIPP
What is a SIPP?
A SIPP (Self-Invested Personal Pension) is a type of UK-HMRC recognised personal pension scheme which allows clients and their financial adviser to choose from a wide range of investments that match the member’s individual circumstances. Therefore, a client can freely choose how their money is invested.
How does a SIPP work?
With the help of a financial adviser, a SIPP allows you to decide what type of investments to invest in depending on your risk appetite and timeframe until retirement.
It is likely you would have received UK tax-relief on your contributions to UK pensions when you were a UK resident. Alternatively, you may be a member of a UK Group Scheme or a Final Salary Scheme wishing to transfer to a SIPP so that you can choose your investment strategy, or so you can decide when and how to take your benefits. It is essential that you start to plan for your retirement as early as possible so that you are able to live comfortably in the knowledge that your lifestyle needs are covered. This will mean careful consideration of your pension fund throughout your working life.
A SIPP gives you control of your pension, whereas most members of a company pension scheme have very little control and almost no idea where their pension money is invested. Also, with many of the UK’s largest companies closing their final salary schemes to all members, a lot of individuals are now having to look at taking their pensions into their own hands.
Indeed, there are many reasons why SIPPs are becoming increasingly popular. Some of the key features include:
-
Control
A SIPP allows the individual along with their financial adviser to decide on the type of investment depending on their risk profile and timescale to retirement and the ability to change the risk as your circumstances change.
-
Flexible Investment
A wide range of investments are available including stocks and shares, unit trusts, investment trusts and OEIC's. You can sit down with your adviser to discuss your needs and what solutions are available to you. However, it’s important to explore options that diversify your portfolio whilst also offering the greatest prospect of growth for as little risk as possible.
-
Charges
SIPP trustee fees tend to be affordable on an annual basis, sometimes as low as a few hundred pounds per year. Funds, other collectives and shares are generally available via platforms or portfolio bonds wrappers, allowing access to a whole range of assets at lower charges than individuals can achieve.
-
Taking Benefits
Members of a SIPP can take income drawdown, meaning that an income can be taken from the fund (subject to certain limits) whilst leaving the remainder of the fund to grow in value. An annuity need not be purchased. The benefits taken each year can vary depending on your individual circumstances and give real flexibility to match your income requirements. This enables you to match your income with your expenses and you can take as little or as much of your pension fund as required each year.
-
Pension Consolidation
If you have accumulated different pension plans, keeping your pension savings in different plan schemes may result in lost investment opportunities and unnecessary exposure to risk. Making the most of your pension plans now could have a significant impact on your happiness in retirement; getting it right could mean a higher income, or even an earlier retirement date.
The most obvious reason for transferring a pension is to obtain better investment performance and lower charges to potentially increase your retirement income. You might well have several different types of pension.
Final-salary schemes pay a pension based on your salary when you leave your job and years of service and can be considered potentially secure but offer limited flexibility . But if you’ve got any other kind of pension – a money purchase occupational scheme or a personal defined contribution pension – it may be appropriate to consider bringing your historic pensions into one place. These pensions rely on contributions and investment growth to build up a fund. A key advantage of moving your funds into one pension pot is the ability to control, monitor fund performance and change assets more easily.
Consolidating your pensions into one pension wrapper can make keeping track of your pension savings easier: you can keep a closer eye on the value of your savings and it could also potentially reduce the amount of management fees you are paying. It will also make things much easier when you eventually retire and want to start drawing on your pension savings.