EXPAT RETIREMENT PLANNINGInternational SIPP
An International SIPP (Self-Invested Personal Pension) is a UK pension scheme created for UK expats who want to manage their UK pension investments whilst living overseas.
They are similar to a standard UK SIPP but have certain features that are designed for non-UK residents.
Who Is An International SIPP For?
International SIPPs are ideal for UK pension holders who no longer reside in the UK, but still want to:
Take greater control over how their retirement savings are managed and accessed.
Retain the regulatory protection and structure of the UK pension system.
This type of pension is particularly suited to:
British Expats or Former UK Residents
Expats in Countries Without a Suitable QROPS Qualifying Recognised Overseas Pension Scheme
Those Planning to Retire Abroad
Non-UK Residents Planning to Draw Income Internationally
Those Looking to Consolidate Multiple UK Pensions
Benefits
Flexible Access Options: Enjoy flexible drawdown options from age 55 (57 from 2028), giving you control over when and how you access your retirement income
Wide Investment Choice: Access a broad range of investments, including individual shares, ETFs, bonds, and funds to suit your goals.
Multi-Currency Options: Hold and invest in multiple currencies, mitigating foreign exchange risk.
Tax-Efficient Drawdown: Potential to reduce tax liability based on your country of residence and a double taxation treaty being in place (NT code required).
Pension Consolidation: Combine multiple UK pension pots into one streamlined, easy-to-manage solution.
Greater Retirement Planning Control: You choose how your pension is invested, accessed, and managed.
UK-Regulated Protection: Operates under UK FCA rules, and is covered by the FSCS Financial Services Compensation Scheme, offering strong consumer protections and oversight.
Expats & Non-Residents Welcome: Designed for non-UK residents with UK pension assets—no UK residency required.
Global Portability: Manage and access your pension from anywhere in the world, particularly useful for the more transient expat
Estate Planning: Pass on 100% of the pension pot to your beneficiaries of choice, exempt of UK IHT. (stopping in April 2027)
Drawbacks
While International SIPPs provide significant benefits for expats, it’s important to be aware of potential limitations and considerations before proceeding:
No UK Tax Relief on Contributions (For Most Non-Residents): If you’re living outside the UK and not earning UK-taxable income, you’re unlikely to qualify for tax relief on new pension contributions.
Fees Can Vary Widely: Whilst they are far more competitive than before, some providers charge high annual fees, platform charges, or dealing costs. Low-cost options exist, but fee transparency is essential when choosing a provider.
Local Tax Implications: Even though withdrawals may be tax-free in the UK (e.g. the 25% Pension Commencement Lump Sum PCLS), your country of residence may tax withdrawals as income. Tax treatment depends on local laws and whether there’s a Double Taxation Agreement (DTA) with the UK. Without careful planning, you could end up paying more tax than expected.
Still Subject to UK Pension Rules and Legislation: International SIPPs follow UK pension legislation, meaning that access is restricted until age 55 (rising to 57 in 2028). As we saw in the UK budget 2024, this can have a material impact, such as no longer being exempt from UK Inheritance Tax.
What Is The Best International SIPP For Expats?
There’s no one-size-fits-all answer because the best International SIPP depends on your circumstances, like where you live, the size of your pension, your investment goals, and whether you’re using a financial adviser.
The International SIPP providers need to be assessed on areas such as fees, investment choice, service, reputation, and functionality.
Choosing the Right International SIPP: Key Considerations
When selecting the most suitable International SIPP for your personal circumstances, it’s important to take several key factors into account to ensure the product aligns with your long-term goals and financial position:
Your Country of Residence
Investment Options
Pension Pot Size
DIY vs. Advised Approach
Contribution Allowance
Key Takeaway
An International SIPP provides a tax-efficient and flexible way for UK expats to manage and access their pensions while living overseas. It enables the consolidation of multiple pension schemes, supports the implementation of a tailored investment strategy, and offers the ability to manage and reduce currency risk. For those living abroad, it offers continuity and control over retirement planning, regardless of location.
However, the pensions market is dynamic, with UK legislation frequently evolving, often bringing tax implications and changes that may affect the suitability of different pension products. Because of this, working with a regulated, independent, cross-border financial adviser is essential to ensure your chosen pension solution aligns with your personal circumstances and long-term goals.
If you're considering an International SIPP, schedule an appointment today to receive expert, bespoke advice on how to make the most of your pension assets while living abroad.
International SIPP Providers
| SIPP Provider | Harbour | iPensions | Novia | STM | IVCM | IFGL | MES |
|---|---|---|---|---|---|---|---|
| Setup Fee | £399 | £300 | £0 | £150 | £150 | £350 | £250 |
| Annual Fee (pa) | £399 | £500 | £216 | £150 | £570 | £500 - £600 + 0.1% for values over £300K | £425 + 0.35% up to £1m and 0.20% over £1m |
| Establishment of Benefits Fee | £150 | £250 | £200 | £130 | £250 | £225 | £215 |
| Income Drawdown Fee | £150 | £100 | £150 | £130 | £325 | £150 regular | £120 |
| Termination / Transfer Out Fee | £499 | £250 | £0 | £155 | £995 | £50 - £950 | £250 - £995 |
| Response Time | 7 + working days | 5 - 7 working days | 5 - 7 working days | 5 - 7 working days | 7 + working days | 5 - 7 working days | Unknown |
| Average time taken to process a withdrawal | 3 - 5 weeks | 2 - 4 weeks | 7 - 14 working days | 2 - 4 weeks | 3 - 6 weeks | 7 - 21 working days | Unknown |
| Self Managed | No | No | No | No | No | No | Yes |
| Investment Options / Platform available | All options available | All options available | Novia platform only | All options available | All options available | All options available | Undisclosed Investment Platform |
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
FAQs
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Yes, you can pay into a SIPP while living abroad, but there are some important conditions and limitations. You can pay into a SIPP as a non-UK resident if you meet one of the following:
You have UK Relevant Earnings
If you’re working for a UK company or earning taxable income in the UK (like self-employment or rental income), you can contribute up to:
100% of your UK relevant earnings (capped at the annual allowance, currently £60,000).
You’ve Recently Moved Abroad
If you were a UK tax resident in one of the last five tax years, you can contribute up to £3,600 gross per year (you pay £2,880 and HMRC adds £720 in tax relief). -
Global Portability
Perfect for UK expats—manage your UK pension from anywhere in the world, with no need to return to the UK.Flexible Access
Take advantage of flexible drawdown options, allowing you to decide when and how to access your retirement income.Diverse Investment Options
Choose from a wide range of investments, including shares, ETFs, bonds, and funds tailored to your financial objectives.Multi-Currency Flexibility
Receive and hold pension income in GBP, USD, EUR, and other major currencies—helping reduce currency exchange costs.Tax-Efficient Income Drawdown
Optimise your pension income drawdown for tax efficiency via an NT code (subject to a double taxation agreement between UK and your country of residence)Pension Consolidation
Simplify your finances by combining multiple UK pension pots into one easy-to-manage solution.Full Control & Transparency
You’re in charge—decide how your pension is invested, accessed, and managed, with complete visibility.Open to Expats & Non-Residents
Designed specifically for individuals living abroad who hold UK pension assets—UK residency not required.Regulated UK Protection
Operates under UK Financial Conduct Authority (FCA) regulations and is protected by the Financial Services Compensation Scheme (FSCS) for added peace of mind. -
An International SIPP is purpose-built for UK nationals living abroad, offering multi-currency options, wider investment choices, ongoing management via a regulated adviser, potential tax efficiency in drawdown, and the ability to have withdrawals paid to foreign bank accounts..
A Standard SIPP is ideal if you're UK-based, seeking tax relief on contributions, and simple domestic pension management.
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Yes, you can transfer your existing UK pensions into an International SIPP. These include personal pensions, stakeholder pensions, defined contribution (DC) workplace pensions, AVCs (Additional Voluntary Contributions). Defined benefit (Final Salary) schemes can also be transferred, but must be carefully evaluated and require FCA-authorised financial advice if the transfer value is over £30,000.
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Tax will be payable in your country of residence. Without a Nil Rate (NT) tax code, 25% of your pension can typically be taken tax-free in the UK. Any subsequent withdrawals will be taxed according to UK income tax bands—for example, the first £12,570 is tax-free, followed by the basic rate and higher rates as applicable.
If you obtain an NT tax code (available where a Double Taxation Agreement exists between the UK and your country of residence), all pension withdrawals can be paid free of UK tax. In this case, you are responsible for declaring any withdrawals to your local tax authority and paying the appropriate local taxes.
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There are some limitations. Non-UK residents may not receive UK tax relief on contributions if they do not meet certain criteria, and the complex regulatory environment can lead to tax challenges, including double taxation.
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We begin with an initial discovery call to understand your current position, financial goals, and specific requirements. Following this, we conduct a comprehensive analysis of your existing assets and priorities.
Based on this analysis, we assess the available products and identify the most suitable solution for your needs. You’ll receive a personalised Wealth Report outlining our recommendations, including the most appropriate International SIPP provider and a tailored investment allocation.
Once you’re happy to proceed, we’ll handle all necessary client onboarding documentation and coordinate the setup of your new International SIPP. The chosen provider will then initiate the transfer process with your existing pension providers.
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Fees vary depending on the provider but start at zero setup and £250 + 0.35% p/a
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An International SIPP is a UK-regulated pension scheme, operating under the oversight of the Financial Conduct Authority (FCA). This means providers must comply with strict standards, particularly those set out in the FCA’s Client Assets Sourcebook (CASS) to ensure the proper safeguarding of client money and investments.
In addition to these operational safeguards, International SIPPs are also protected by the Financial Services Compensation Scheme (FSCS). This scheme offers compensation of up to £85,000 per person, per provider in the rare event of provider insolvency, offering a strong layer of financial protection.
The dual protection of CASS rules and the FSCS provides a robust framework:
CASS focuses on prevention, requiring SIPP providers to maintain segregated client accounts and conduct regular reconciliation checks.
FSCS serves as a safety net, ensuring compensation if those protections fail.Together, these safeguards offer clients confidence, transparency, and trust in the secure management of their pension assets.
