Legal & General Pension Transfer For Non-Resident
This article is intended for British Expats who hold Legal and General pensions.
Legal & General Pensions | Retirement Benefits
Legal & General (L&G) is a leading financial services company based in the UK, offering a range of products including pensions, investments, insurance, and retirement solutions. Their pension offerings include various workplace and individual pension plans designed to help people save for retirement.
Legal & General UK Pension Provider for Expats
As one of the UK largest providers of pensions and retirement solutions, L&G's products cater to all kinds of requirements specific to UK residents. However, when you change your country of residence, the pension schemes offered can no longer meet your needs and objectives.
Key issues incurred upon becoming an expat include:
No ongoing management of your UK registered pension scheme
No flexible access to your personal pension savings
Currency risk by holding all your pension pot in GBP
Double taxation of income. Pension income being taxed at source and in your new country
L&G Pension Transfer Out Options
Depending on your objectives, country of residence, and the type of L&G scheme held there are 2 options to consider.
L&G Pension Transfer to Recognised Overseas Pension Scheme
In the Autumn Budget of 2024, the UK government introduced significant changes to the Overseas Transfer Charge (OTC) affecting pension transfers to Qualifying Recognised Overseas Pension Schemes (QROPS). Previously, transfers to QROPS within the European Economic Area (EEA) or Gibraltar were exempt from the 25% OTC under certain conditions. However, effective from 30 October 2024, this exemption has been removed. As a result, unless you live in the same country as the QROPS is held, you will incur a 25% tax on the total value.
L&G Pension Transfer To Expat SIPP
An expat SIPP, also known as an International Self-Invested Personal Pension (SIPP), is a type of personal pension designed to provide flexible retirement savings options for individuals who live or work abroad or plan to retire outside the UK. It combines the benefits of a traditional SIPP with features tailored for international clients.
Key Features Of An International SIPP
Investment Flexibility:
Access to a wide range of investments, including funds, stocks, ETFs, and bonds.
Ability to hold multiple currencies (e.g., GBP, USD, EUR) to reduce exchange rate risks.
Ongoing Management:
Obtain ongoing management of your pension funds from a regulated financial adviser. Thus ensuring your portfolio is aligned with your risk appetite and objectives
Tax Efficiency:
Growth within the pension is free from capital gains tax and income tax.
Tax efficient drawdown:
Via an NT code, you can withdraw your pension savings free of UK tax and pay tax in your country of residence. Note, that a double taxation agreement between the UK and your new country must be in existence.
How To Apply For An NT Tax Code - The Wealth Genesis
Accessibility & Retirement Income Options:
Flexible access at retirement, including drawdown and lump-sum withdrawals from age 55 (57 from 2028)
UK Regulatory Oversight:
International SIPPs are regulated by the UK's Financial Conduct Authority (FCA) and Financial Services Compensation Scheme (FSCS), offering the highest level of security and consumer protection.
Pension Transfer Advice Non UK Resident
Transferring a pension while living abroad can be a complex decision, especially for expats. It involves navigating tax laws, pension regulations, and investment options in both the UK and your country of residence.
As a cross-border pension transfer specialist, we help clients manage their retirement savings when moving between countries. We provide bespoke advice on transferring pensions while minimising tax liabilities, ensuring regulatory compliance, and optimising long-term retirement outcomes.
Independent Expat Financial Advisers
At The Wealth Genesis, we specialise in supporting British expats around the globe with their financial planning needs.
As a fully independent and regulated firm, we are not affiliated with any specific providers or investment managers. This independence allows us to deliver personalised solutions tailored to your unique financial situation and goals.
We prioritise transparency by offering fair, straightforward fees with no hidden charges. Whether you need guidance on your L&G UK pension scheme or other pension products, our expertise is here to help you safeguard and grow your wealth.
