Moving pensions out of UK to (new) home country.

[boddingtonbee]

Should I move my UK pensions to my new home country in the EU?

I have two final salary pension scheme pensions based in the UK but have since moved to another EU country. I have right of permanent residence and employment here and after more than a decade have no plans to move back to the UK. In new country I have pensions and investments. Would it make things easier and less risky to move money out of UK and consolidate the pensions as much as possible? Is it less risky to do this? The country is Denmark and the private pension I have is through Danske Bank.

What would you do?

Consult a financial advisor

Because the figures involved are rather important

Yeah, I sort of get that. I am going to do that. I'm just trying to get a feel for what others might think. Is anyone else in the same position etc...

But would it make a different if I consulted a UK or a Danish advisor? I guess I'm thinking more about the currency aspect. It seems that perhaps the pound is a bit weaker and more vulnerable than it used to be. What if the exchange rate is not good when I get to retire?

I'm at the swirling around my head stage still. I have a statement for transfer value for one fund, and I am requesting a statement for the other. So should have more concrete information soon with which to consult a financial advisor.

its not recommended until at retirement age. Certainly not coming out of a DB scheme where you bear investment risk post transfer.

A company that could help is QB Partners, but it’ll cost a lot.

Sorry to be dense, but what is a DB scheme?

No it’s not generally advised as the costs are crazy

That’s about the only reason that’s not included in the decision 🙄

DB is a final salary pension OP

Who are the Final Salary (Defined Benefit) pensions with?

Thanks doingthehokeykokey ,

They are with:

USS (who I gather have got investments with Thames Water which is giving me the heebie-geebies - bearing in mid I know nowt about financial matters and only skimmed the headlines a few weeks ago)

Lane Clark & Peacock LLP

The USS transfer values are notoriously low. I’d sit in that. 90% protection via the PPF would be better.

Not familiar with the other I’m afraid.

How young are you?

That's interesting what you say about USS, as I haven't yet got a figure from them, but many years ago when I'd just moved countries I explored the possibility of a transfer. At that time the offer was about five years worth of pension payments which seemed peanuts and I didn't pursue further. But, at today's value would be less than 23% of what I've been offered with the LCP pension fund now. I'm requesting an up to date transfer quote for USS and will be interested to see what it comes out at. Both pension schemes were for a similar amount of time and not wildly differing salaries, either.

Sorry to be dense (again) but what do you mean by "90% protection via the PPF would be better"?

The other scheme is one that my pension has ended up in via a circuitous route, having worked in a company that has changed hands/merged etc... a few times. This is maybe the fourth company managing it? At some point it was Standard Life but now it is https://www.lcp.com/pensions-benefits/

As for age, I'm mid to late forties. I plan on working until the retirement age here, which is 67.

Thank you so much for the info, very useful.

I wouldn't move them ( not a financial adviser). A final salary or DB scheme means all the risks - inflation, investment and you living a long time) are on the sponsor. USS is a last man standing scheme so all universities would have to go bust for you to be at risk. And then the PPF - pension protection fund - would take over and pay you 90% of your pension. I would not be worried about Thames Water investments either - there are a number of different entities in the group and the one most pension schemes and insurers has invested in is the regulated entity which has guaranteed cash flows.

Lane Clark Peacock are an actuarial advisory firm and advise many of the top pension schemes in the UK. I'd expect their fund to be very good not least as all the employees in it will know what to look for and ask questions about!

Thank you for that, ZoeyBartlett . I'm starting to put together the pieces of information needed to get an idea of what to do.

I think I am still worried about the value of payments when the exchange rate is taken into account. Do I need to worry about the value of the pound? I hear so much bad news about the state of the UK economy post Brexit/Covid and the Ukraine war breaking out. Of course, bad news sells, but what is the long-term prospect of the pound? I know people who retired to the continent and lived the life of Riley until the pound weakened against the Euro and then their standard of living took a real hit. I worried that that scenario might happen to me in the future.

Yes exchange rate will impact. But I guess the same is true now? You wouldn't be allowed to move them without financial advice plus you can only move them into another pension scheme. Transfer values are low at the moment as everything was devalued during trussenomics. Depends on your age really, if you have some time before the normal date of retirement for those schemes (which may not be 65) you may be able to wait till things improve. As an example, some transfer values are 20% less now. Alternatively you could think that is ok as whatever scheme you move it to can by assets cheaper!

Bottom line, find an IFA.

Stop the eye rolling FFS

Stop talking about stuff that you only have opinions on, but no knowledge.

No one will move it at your age OP, far too long to NRA to advise. Sit it out for now.

It’s complex to move pension funds - you need to ensure that the new fund is approved for HMRC. I think as they are db pensions they may not be moveable without changing them to a dc fund. One thing to check if you leave them is the tax position in the uk and Denmark. Db pensions in the uk would usually be uk source income- so you would pay tax in the uk even if you live elsewhere

Not only will you need a DB licenced financial adviser, this adviser will also need to be qualified to advise in overseas transfers. I very much doubt there are even a handful of advisers in the country who can help you, legitimately.