EXPAT RETIREMENT PLANNINGThe International SIPP
What is an International SIPP?
Simply put, an International SIPP (or Self-Invested Personal Pension) is a UK personal pension scheme that is built for Expats.
In the UK, a Self-Invested Personal Pension (SIPP) is among the most popular pension options, providing flexibility, low costs and control over underlying investments. When retirement comes, SIPPs allow for full flexible access drawdown, which make them an attractive choice.
However, most UK-based SIPPs, including AJ Bell, Hargreaves Lansdown, and Vanguard, no longer accept non-UK residents as policyholders. This shift has intensified post-Brexit, as the UK is no longer part of the European Single Market.
In response, a market for International SIPPs has emerged, catering specifically to non-UK residents. There are now numerous international SIPP providers, each offering unique features. For those who are considering transferring UK pensions abroad, it’s wise to seek expert advice to find the best international SIPP option that aligns with your financial goals.
Who Is It For?
In theory, anyone who’s living outside of the UK can transfer their pensions to an International SIPP account, though the benefits may vary depending on different individual circumstances.
The primary consideration when making a transfer is the nature of your existing UK pensions. You’ll need to ask yourself if they provide a full-flexible access drawdown for non-residents, or will they only offer a lump-sum payout? Do they allow you to manage investments actively? Do they support multi-currency investment options?
KEY FEATURESFull flexi-access drawdown for non-residents
Complete control of investments
FCA Regulated
HMRC Approved
Ability to hold in multi-currency
Low cost and portable
LIMITATIONSTypically cannot hold individual shares
Drawdowns can take longer than UK providers
Potentially more expensive than UK providers
International SIPP Comparison
International SIPP Providers
Our Verdict
The International SIPP stands out as an ideal solution for expats worldwide. It has a low-cost structure and flexible drawdown options, so the International SIPP is a top choice for those hoping to optimise their retirement planning abroad. These benefits make it one of the best international SIPP options to consider for expats looking for flexibility and control.
CASE STUDY:
International SIPP
John, a retiree living in France with his wife Deborah, currently relies on his Defined Benefit scheme to meet their income needs. His UK state pension will be added in three years. He also holds a workplace pension with Scottish Widows, valued at £325,000, which he wants to better align with their lifestyle goals.
John and Deborah plan to travel extensively over the next decade and need flexible, ad-hoc access to funds. Their focus isn’t on high growth but more on the preservation of their pension’s value and generating a steady income. Unfortunately, his current pension policy lacks flexible access options and is unmanaged, meaning that a full withdrawal would result in an excessive tax burden.
In these cases, an International SIPP could offer the ideal solution. By choosing the best international SIPP provider, John could gain ongoing management of his portfolio, with greater flexibility and access options tailored to his retirement needs. An International SIPP may help preserve the value of the pension, generate income and allow John and Deborah to access the funds as they wish.
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We recommended John transfer to an International SIPP, specifically, the Novia Global UK SIPP. Within the SIPP he can hold a low-risk portfolio of government, sovereign, and corporate bonds as well as dividend-paying stocks such as those found in the FTSE 100
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TWG Advice Fee - £3000 (equivalent to 0.93%)
Novia Global UK SIPP - 0
Total initial cost - £3000 (equivalent to 0.93%)
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The Wealth Genesis Annual Management Fee of 0.85%, including quarterly reviews, fund rebalances, and assistance with currency conversion and withdrawals.
Novia Global UK SIPP - £216 pa
Novia Global Investment Platform including custodian - 0.34%
Total ongoing cost - 1.19% + £216 pa
