What You Need To Know Before Transferring

1. Are there any exit penalties?

Exit penalties on your existing pension can reach thousands of pounds, wiping out any benefit associated with transferring. Checking if they apply can save you time and money.

2. Will I lose any guarantees?

Your existing pension might come with valuable benefits, like a guaranteed annuity rate (GAR) or a guaranteed minimum pension (GMP). These guarantees can mean a higher income when you retire.

3. What happens if I change my mind?

Pension transfers usually come with a thirty-day cancellation period. If you’re thinking of cancelling, make sure your previous provider is happy taking your money back. Some may refuse.

4. Will I lose any bonuses?

Some providers offer bonuses in return for loyalty and regular pension contributions. It’s worth checking, because your new provider might not be able to match it.

5. Will I lose the right to a higher tax-free lump sum?

Any rights for a tax-free lump sum of more than 25% of your pension value will usually be lost when you transfer. You should also check you won’t lose the option to access your pension early if you have a ‘protected retirement age’ lower than 55.

What is the Next Step?

We are able to assist and we will be able to answer any pension or retirement planning questions you have and advise you on the best way to proceed, in what can be a complex area.

Contact us today and one of our experienced advisors will be happy to assist.

About Expat Financial

Expat Financial is a team of highly experienced Hong Kong based Financial Advisors. As Expats ourselves we understand the challenges of living and working in a foreign country. We use our Expat experience along with our extensive financial expertise to help you maximise the benefits of working and living offshore.

Regardless of whether you’re a financial novice or a seasoned investor we specialise in helping you to achieve your goals.

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