Better UK and US Pension Planning
Optimising UK & US Pensions for Life in the EU.
Expert UK & EU pension advice
Ingenium Financial is fully qualified and regulated to provide comprehensive UK and EU pension advice. As a US national, you should also optimise your pension structure. This is a crucial element of your financial plan. Failure to act can result in paying double taxation when you start drawing income.
Streamline your pension management
Many individuals have multiple pension schemes from different stages of their careers. Keeping track of them can be time-consuming, and dealing with pension companies is often frustrating. You may be unaware of the true fees you’re paying or stuck in underperforming, one-size-fits-all funds. If you have a private UK SIPP or old workplace schemes, we offer a complimentary assessment to explore your options. The same applies to US 401(k) and IRAs.
Protecting your pension from UK tax changes
The UK pension framework frequently changes, often becoming a target for increased taxation. Many of our clients choose to move their pension assets out of the UK to safeguard them against potential tax hikes. If your pension is structured as a trust, it may be governed by trust deed rules, which are not recognised in most European countries. This could cause future complications, making it essential to consider transitioning to a contract-based scheme.
Transitioning to QROPS/ROPS
We have successfully guided many clients through the process of transferring UK pension funds to a QROPS (or ROPS as they are called). These are typically based in Malta, while the secure and active portfolio owned by the pension can be based in another secure location. Ingenium Financial will manage the investment aspect, either directly or through leading discretionary fund managers who specialise in portfolio management.
Establishing a new pension in the EU: QNUPS
Investing in a QNUPS Pension
Do you have capital you’d like to invest into a pension? Or perhaps you own a UK ‘buy-to-let’ or commercial property portfolio that isn’t tax-efficient? In these cases, establishing a new pension under a QNUPS structure could be beneficial.
Benefits of QNUPS
A QNUPS pension offers significant advantages, including:
- Immediate removal of assets from your estate, reducing potential inheritance tax.
- Lower tax rates during the holding period and income drawdown.
- Protection of assets from capital gains tax.
If real estate is involved, it can be sold to the pension, potentially triggering a capital gains tax bill. However, delaying action will likely increase this bill over time.
QNUPS pension: withdrawal options
Taking Money Out of a QNUPS
QNUPS pensions allow income drawdown starting at age 55. You can withdraw up to 25% of the total value as a ‘tax-free lump sum,’ although this may not be tax-free in your country of residence. The remaining 75% is used to provide a regular income, which can be taken monthly, quarterly, half-yearly, or annually.
The amount you can withdraw is determined by your fund size, age, and Government Actuarial Department (GAD) rates. You are allowed to withdraw up to 150% of the published GAD rates, offering a generous income that can support a comfortable lifestyle.
QNUPS and Tax Efficiency
From a tax perspective, QNUPS behave similarly to annuities, which many EU countries tax lightly. This makes QNUPS an attractive option for those seeking a tax-efficient pension solution while residing in the EU.
We optimise your pensions investment strategy; consider consolidation benefits and potential taxation
Optimising your pension is crucial for securing your financial future and ensuring long-term stability and complete peace of mind, whilst living in Portugal & the EU.