Morningstar International SIPP Review 2025

As part of our ongoing commitment to provide valuable insights and reviews of pension products for expats, we are conducting a detailed analysis of the Morningstar International SIPP for non-UK residents.

If you are a UK expat living abroad and looking for a way to manage your pension efficiently, an International SIPP (Self-Invested Personal Pension) could be the perfect solution.

In this guide, we will take an in-depth and independent look at the International SIPP offered by Morningstar.

To learn more about how an International SIPP works and how it could benefit you as an expat, visit our dedicated International SIPP page.

Morningstar SIPP Review For Non-UK Residents

The Morningstar International SIPP is a new pension product introduced in 2024 by the Morningstar Wealth Platform, designed specifically for UK expats living around the world.

Offering both pension and lump sum benefits, this scheme provides far greater investment flexibility than most traditional pension plans, making it an attractive option for those looking to manage their retirement savings efficiently while living abroad.

As a self-invested personal pension (SIPP), it allows expats to choose from a diverse range of investment options, offering more freedom, flexibility, and choice compared to other pension schemes.

One of the key benefits of the Morningstar International SIPP is the ability for expats to consolidate and manage their pensions from anywhere in the world. It also enables them to work closely with a financial adviser for ongoing support while maintaining full control over their investment strategy and income.

Key Advantages Of The Morningstar SIPP

Flexi-Access Drawdown (FAD)

Flexi-Access Drawdown (FAD) is a key feature which the Morningstar wealth platform offers, allowing you to access your pension savings in a flexible way, suited to your lifestyle and financial goals. With FAD, you can choose how much pension income to take and at which frequency – which is particularly useful for expats who want to manage their income tax implications efficiently while living abroad.

Extensive Range of Investments

The Morningstar International SIPP offers a diverse range of investment options, giving you the opportunity to build a diversified portfolio. You can invest in equities, bonds, funds, and ETFs, as well as non-UK situs holdings, meaning you have the flexibility to include assets based outside the UK. This allows you to tailor your investment strategy to align with your personal financial objectives and risk appetite.

Tax Benefits

One of the key benefits of this pension product is its tax efficiency. Contributions may qualify for UK tax relief, and any growth within the pension remains free from UK income tax and capital gains tax.

Typically, 25% of your pension pot can be withdrawn tax-free once you reach the age of 55 (57 from 2028), known as the Pension Commencement Lump Sum (PCLS).

Mitigate Currency Risk

The Morningstar International SIPP will be particularly useful For UK expats in the US, since it now allows multi-currency investment options including GBP and USD. Over time, this can significantly reduce exposure to currency exchange risk.

Beneficiary Provisions

If you pass away before the age of 75, 100% of your pension pot can be passed on to your chosen beneficiaries free of UK inheritance tax, providing financial security for your loved ones.

Ongoing Management and Support

To ensure your investments are managed effectively, the Morningstar International SIPP requires you to work with a financial adviser. This professional guidance ensures you receive expert advice tailored to your unique financial circumstances. By building a strong relationship with your adviser, you can create a portfolio which aligns with your objectives and risk tolerance, helping you achieve long-term financial security in retirement.

Potential Risks Of The Morningstar SIPP

Investment Risk

Like any investment, your International SIPP can go up or down in value. The performance of your chosen assets will impact your retirement income, and there’s always a risk that returns may not meet expectations. Being comfortable with some level of risk is important.

Taking Benefits From The Scheme

Withdrawing from your SIPP too early could reduce your retirement funds faster than expected, especially if market returns are low. Rules around withdrawals may also change, so staying informed and working with a financial adviser is key to making the right decisions.

Costs Associated With An Expat Pension Transfer

Pension transfers can take several months, and there are costs associated. These costs vary depending on which international financial adviser you choose to work with.

Typically speaking, most financial advisers will charge between 1% and 5% of your total pension value to transfer and consolidate your UK pensions into an International SIPP.

We feel anything over 3% is excessive, and at The Wealth Genesis, we charge the same flat-fee of £3,000 for all pension transfers, regardless of the value or number of pensions involved.

Be sure to fully understand all costs involved with any pension transfer, and get second opinions and quotes from other advisers to secure the best value.

Morningstar Wealth Platform | The Costs

The Morningstar SIPP offers a cost-effective and transparent solution with a straightforward charging structure.

The initial setup fee for the SIPP is just £195, with an annual trustee fee of £195.

Ongoing platform fees are competitively tiered at 0.35% on the first £250,000, 0.29% on the next £250,000, and 0.21% on the next £500,000, providing great value for larger accounts.

International SIPP Safety

One of the Key benefits of the Morningstar International SIPP is the level of security:

Trust Structure

The Morningstar platform operates under a trust structure, similar to many UK pension schemes, ensuring the secure and separate management of pension assets. The trustee, Morningstar Wealth EMA Trustees Limited, holds the cash and investments within your International SIPP on your behalf, providing an added layer of protection.

This legal arrangement ensures that your pension assets are kept distinct from Morningstar’s own assets, safeguarding your funds even in unforeseen circumstances. The Trustee appoints Morningstar Wealth International Limited as a custodian of your cash and investments, with a legal and ethical obligation to protect them.

Protection Of UK Regulators

Since the Morningstar SIPP is a UK-based scheme, it benefits from the oversight and protection of UK pension regulators, including the Financial Services Compensation Scheme (FSCS) and the Financial Conduct Authority (FCA).

Pension Transfer Advice For Expats | Our Verdict

An International SIPP is an ideal pension solution for non-UK residents, offering a cost-effective and secure way to manage retirement savings.

The Morningstar Platform provides a range of benefits, including affordable fees, a safe and secure structure, and investment flexibility which allows you to grow your wealth over time.

The Morningstar International SIPP stands alongside the Novia Global SIPP as one the best pension accounts available for expats around the world. Deciding which expat pension provider is best for you depends on your individual circumstances, as well as the investment options you require.

To see our full review of the Novia Global SIPP, follow the link below:

Novia Global SIPP Review - The Wealth Genesis

At The Wealth Genesis, we specialise in helping expats transfer their pensions with expert guidance. As a fully independent and regulated firm with a fixed fee charging structure, we are committed to providing transparent and honest advice.

To learn how we can help you with your pension, book a free discovery call today using the diary below.