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Home » Expat Financial Planning Services » Pension Advice Services » Defined Benefit Pension Analysis

Defined Benefit Pension Analysis Service For Expats

Explore Your Defined Benefit Pension Options as an Expat

Take control of your retirement with expert analysis tailored to British expats. Our Defined Benefit Pension Analysis Service helps you uncover the true value of your pension, ensuring your savings work harder for you and your family.

Gain flexibility, confidently plan your income, and secure a future that fits your lifestyle and goals as an expat. Book your complimentary consultation today and start shaping your retirement on your terms.

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Defined Benefit Pension Transfer Benefits

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Guarantee 100%
for Your Family

With a defined benefit pension, a spouse often receives only 50% of your pension, while children over 21 or 18 and working get nothing. Transferring to a personal pension lets you choose who receives the fund, giving control over your estate planning.

Protection Against
Fund Insolvency Risks

Defined benefit pensions depend on employer solvency, with 1/3 of UK schemes already failing. By transferring to a personal pension, your savings are independent, protecting your retirement income regardless of company status.

Maintain Your Income
and Adjust Withdrawals

Transfer to a personal pension while retaining the same income by matching investments in your existing scheme. Enjoy flexibility and security, with the freedom to adjust withdrawals based on your needs and tax planning.

True Flexibility
with a Personal Pension

Unlike the rigid structure of a defined benefit scheme, a personal pension gives you the freedom to choose your investment strategy, adjust your income, and manage your pension according to your evolving needs and goals.

Track, Consolidate,
and Diversify Funds

Consolidate pensions from past jobs into one manageable fund for a clear view of retirement assets. Personal pensions also offer access to 12 currencies and diversified investments, ideal for expats reducing currency risk.

Protect Your
Life Earnings

Defined benefit pensions fix your tax schedule. With a personal pension, you control when and how much tax you pay, allowing you to structure withdrawals efficiently and minimise unnecessary tax liabilities.

Access Your
Pension at 55

Defined benefit pensions typically require retirement at 60 or 65, with penalties for early access. Personal pensions, however, allow you to access your savings as early as 55 without penalty giving you more flexibility.

Get a 25%
Tax-Free Lump Sum

Defined benefit pensions only pay a monthly income. By transferring, you can access 25% of your Cash Equivalent Transfer Value tax-free, freeing up funds to invest, pay down debt, or support family goals.

Why Titan Wealth International?

British Expat Specialists

We specialise in financial advice for British expats, offering services tailored to their unique needs. Our advisers have extensive experience with cross-border financial issues, including defined benefit pension transfers, tax planning, and estate management, ensuring compliance and minimising tax penalties.

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Pension Transfer Expertise

Each client is assigned an experienced dedicated pension transfer specialist to guide them through every step. Our advisers provide expertise, handle paperwork, and offer seamless support wherever you are, giving you full access to Titan Wealth International’s wealth, tax, and estate planning resources.

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Fully Licensed and Regulated

Our advisers are fully licensed and regulated, committed to upholding the highest standards of compliance and trust. We work closely with regulators to ensure our services meet industry requirements and prioritise our clients’ best interests.

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Transparent Fees

We prioritise transparency in our fees, clearly outlining all costs and what they cover. This approach empowers you to make informed financial decisions with confidence, knowing that each fee is clear and justified.

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Defined Benefit Pension Key Numbers

12X

Private employer final salary pension deficits increased 12X, soaring from £10.9billion at the end of 2022 to £135.9billion at the end of March 2023.

66%

3,606 of the 5,422 DB schemes do not currently have the assets to fulfil all of their pension member’s liabilities.

£21m

per day is being transferred out of Final Salary schemes.

50%

Even the most generous final salary schemes only allow you to leave a maximum of 66% to your loved ones. Typically it’s only 50%. With a Personal Pension 100% goes to your loved ones.

2016

In 2016 all public sector (NHS, Civil Service, Police, Fire-service) schemes became no longer transferable. The concern for members is the private sector could one day follow too.

14%

This is the reduction in total payable income for someone with a defined benefit pension valued at £20,000 p.a. when the inflation rate is switched from RPI to CPI in 2030.

Common Defined Benefit Pension Transfer Queries

Will I lose my guaranteed income if i transfer my defined benefit pension?

DB Pension Analysis

Will my loved ones receive my pension when I pass away?

DB Pension Analysis

Am I at risk of losing my UK pension due to company insolvency?

DB Pension Analysis

Can I access my pension funds earlier than the UK retirement age?

DB Pension Analysis

Am I limited by the general investment strategy of my DB scheme?

DB Pension Analysis

How can I secure a lifetime income from a pension transfer?

DB Pension Analysis

DB Pension vs Personal Pension: Pros & Cons

Cons
Pros

Cons

Lack of Flexibility: Income options are fixed. Adjustments after retirement are typically not possible, making it potentially limiting, especially for expats.

Pros

Guaranteed Structure: The scheme’s guaranteed income commences once you reach your expected retirement date. This income is safeguarded and promises an escalating income for life.

Cons

Currency Constraints: Payments are always in GBP, potentially causing issues for expats due to currency exchange rates.

Pros

Strict Income Options: Income is paid for life, typically increasing yearly with inflation. Even if you live longer than expected, the scheme benefits might offer better value than a personal pension.

Cons

Reduction in Benefits: The transition to CPI from RPI in 2030 will lead to potentially lower pension income over time. Taking income early results in a reduction (early retirement factor), and taking it later results in an increase (late retirement factor).

Pros

Taxed at Source: Potential benefits from a double taxation treaty between the UK and your home country. Depending on circumstances, income may be taxed at source by the scheme.

Cons

Irreversibility of Transfer: If you opt to transfer out, trustees aren’t obliged to reinstate your original benefits.

Pros

Trustee Management: The Defined Benefit scheme is managed by trustees and administrators, eliminating the need for you to make complex investment decisions.

Cons

Death Benefits: Upon death, spouses typically receive only 50% of your final salary pension. Children over 21, ‘or in full-time education over the age of 23 or those aged 18 and working receive 0%.

Pros

Inflation Protection: Your income will usually increase with inflation measures such as RPI, but the transition to CPI in 2030 will result in reduced yearly increments.

Pros

Pension Protection Fund: If the scheme can’t meet its liabilities, the Pension Protection Fund provides a safety net, albeit with specific caps and restrictions.

Pros

Retirement Age Clarity: The standard retirement age is between 60 to 65. Early retirement is possible with some adjustments, like an early retirement factor.

Cons
Pros

Cons

Loss of Guaranteed Income: By transferring, you’re giving up a guaranteed, escalating income for life. Should you live longer than expected, the scheme benefits of a Defined Benefit pension might offer better value.

Pros

Flexible Structure: A personal pension is a fund you own; its value is based on contributions and investments, starting with your transfer value.

Cons

Investment Risks: Past performance is just a guide; future performance isn’t guaranteed.

Pros

More Income Control: You control the income withdrawal, which can be used for global tax efficiency. The income is flexible, and you can adjust it based on circumstances. You can decide on the level and frequency of income and alter this to meet your income requirements. For instance, you may opt for a higher pension early on to make the most of your retirement and later reduce your income as you age.

Cons

Potential Early Withdrawal Impact: Accessing funds while working could reduce future income when you need it most.

Pros

Tax Planning Advantages: Possibility of 25% tax-free withdrawal and potential expat tax benefits, depending on individual circumstances and residence country.

Cons

Tax Implications: There might be consequences depending on how you access your pension, and tax and pension laws might change, affecting benefits or drawbacks.

Pros

Full Control: Over both investments and pension benefits.

Cons

Inheritance Tax Risk: Death benefits might be subject to inheritance tax if transferring when in poor health and dying within two years.

Pros

Legacy Planning: The entire pension fund value is available to whomever you nominate within your death benefit nomination, in whatever proportion you choose, either as a lump sum or as income. This flexibility allows a spouse, for instance, to receive the full 100% of the funds.

Pros

Currency Flexibility: A personal pension designed for international residents offers choices among 12 major currencies for fund holdings.

Pros

Investment Control: You can determine how your pension funds are invested.

Pros

Early Retirement: Possibility to retire once you turn 55.

How Our Service Works

Book a free no obligation 15 minute call with one of our pension transfer business development managers. They will explain which pension transfer benefits you qualify for, explain the best option for you and explain the pros and cons of transferring.

On your behalf we will contact the trustees of your UK pension schemes and gather all of the information specific to your pensions.

Once we receive information specific to your pensions, your pension transfer adviser will discuss your financial situation and personal objectives for retirement. To do this, we will :

  • Help you answer a financial questionnaire to understand your financial situation precisely.
  • Listen to what plans you have for the future, what financial security represents for you, where you plan on living and how much you expect to spend.

We will provide you with a free pension transfer assessment report that considers all the information from your pension and current situation. The report will include:

  • A future projection status of your entire financial asset base.
  • A clear comparison of projected income streams between your “current” arrangements and the “options” available.
  • Our expert advice on whether or not you should transfer your UK pension.

If a transfer is recommended, and you accept our recommendations, we will manage all aspects of the transfer for you. If not, you walk away without paying a penny.

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Guide to Final Salary Pension Transfer for UK Expats

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Final Salary Pension Transfer for UK Expats—The Process Explained

Transferring your final salary pension is an irreversible decision that requires careful consideration. This detailed guide explains everything UK expats need to know about the final salary pension transfer process, pension scheme alternatives, and potential downsides.

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Pension Transfer Value (CETV) Calculator

A pension transfer value (CETV) is the cash value that you would receive from your private sector defined benefit pension provider into your own personal pension. Find out your estimate in 30 seconds with our calculator.

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Understanding Your Pension Transfer Value (Cash Equivalent Transfer Value)

Defined Benefit Pension Transfer Guide For Expats

Considering a defined benefit pension transfer? Our comprehensive guide for expats provides the insights you need to make informed decisions about your financial future. Inside, you’ll discover:

  • 7 reasons why British expats are moving their pensions.
  • Why companies incentivise switching to personal pensions.
  • The importance of CETVs and how they impact your transfer.

Get the knowledge and confidence to take control of your retirement – download your guide today.

Download Guide

Book Your Complimentary Defined Benefit Pension Transfer Consultation

During your 15-Minute call with a pension transfer specialist, you’ll:

  • Discover which pension transfer benefits are available to you.
  • Identify the best transfer option for your unique circumstances.
  • Gain insights into the pros and cons tailored to your situation.

Schedule your no-obligation call today to explore your options and plan confidently for your future.

Book Your Call Today

Defined Benefit Pension Transfer FAQs

A defined benefit (DB) pension scheme is a retirement plan where you can expect a guaranteed amount of money from your employer once you retire, based on your years of service and final salary. Your employer manages the plan’s investments, and you receive a monthly payment for the rest of your life.

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As a British expat, you can transfer your defined benefit pension. To do so, you must consider a self-invested personal pension (SIPP) or a qualified recognised overseas pension scheme (QROPS), depending on your circumstances and financial goals.

It’s crucial to seek professional advice from experienced cross-border defined benefit pension transfer advisers to ensure you’re making informed decisions that align with your long-term objectives and comply with regulatory requirements.

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As a British expat, transferring your defined benefit pension to another country is possible through a qualified recognised overseas pension scheme (QROPS). A QROPS allows you to consolidate your pension assets, benefit from currency and tax advantages, and access a wider range of investment options.

However, the process can be complex. Therefore, consulting with an experienced financial adviser specialising in cross-border expat pension transfers is highly recommended to ensure a smooth, compliant process and maximise your pension assets abroad.

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You cannot transfer a defined benefit pension to another country using a Self-Invested Personal Pension (SIPP), as SIPPs are UK-based pension schemes. However, you can still use a SIPP to manage your pension assets while residing abroad.

If your primary goal is to transfer your pension to another country, a Qualified Recognised Overseas Pension Scheme (QROPS) would be more suitable. QROPS are designed specifically for expats and allow transferring pension assets to an overseas scheme in compliance with HMRC regulations.

It’s essential to seek professional advice from a financial expert experienced in cross-border defined benefit expat pension planning to determine the best course of action for your situation and ensure regulatory compliance.

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With Titan Wealth International, there is no charge to explore your options. However, there may be a charge to transfer due to the specialist nature of this type of business. This can range from 0-5% of the fund value. If this is the case, we will highlight this in your pension report, which you will receive before any fee is agreed upon for free.

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For a British expat considering a defined benefit pension transfer, it’s crucial to weigh the advantages and disadvantages to make an informed decision. Here’s a clear outline of both:

Advantages:

  • Flexibility: Transferring to a QROPS or SIPP provides greater control over investment decisions and the ability to tailor your strategy to meet specific financial goals.
  • Protection against pension fund insolvency: 1/3 of UK final salary schemes have gone bust already, and more will continue. A personal pension is independent of a company’s ability to fund it from revenue.
  • Currency benefits: As an expat, transferring to a QROPS allows you to hold and draw your pension in a different currency, which may help mitigate currency risk and fluctuation.
  • Tax efficiency: QROPS can offer potential tax advantages, depending on the jurisdiction of the receiving scheme and your country of residence.
  • Estate planning: Pension transfers provide enhanced options for passing on 100% pension assets to beneficiaries, including potential inheritance tax benefits.
  • Lump-sum withdrawals: Transferring a pension can grant access to larger lump-sum withdrawals, depending on the receiving scheme’s rules and regulations. You can get up to 25% of your cash equivalent transfer value (CETV) as a tax-free cash lump sum.
  • Access your retirement pot at 55: A personal pension allows you to access your pension from 55 years old without penalty.

Disadvantages:

  • Potential loss of guaranteed income: A defined benefit pension provides a guaranteed income for life – unless the fund goes bust – which is lost upon transfer. The new scheme’s performance puts you in control of your money and will depend on your investment returns.
  • Complexity: Pension transfers can be complex, with varying rules and regulations depending on the receiving scheme and country. That is why it is advised to use a specialist cross-border pension transfer advice service like Titan Wealth International-Group.
  • Irreversible decision: Pension transfers are typically irreversible.

As a British expat, it’s essential to consult with a specialist cross-border financial adviser experienced in expat pension transfers to evaluate the advantages and disadvantages in the context of your specific situation and long-term financial objectives when deciding whether or not to transfer your defined benefit pension.

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There can be tax implications when transferring a defined benefit pension, particularly for British expats considering moving their pension to a Qualified Recognised Overseas Pension Scheme (QROPS) or a Self-Invested Personal Pension (SIPP).

Understanding the potential tax consequences is essential to making an informed decision.

Key tax implications to consider include:

  1. Tax on pension income: Depending on your country of residence and the receiving pension scheme, your pension income may be taxed differently, potentially offering tax advantages for transferring out of your defined benefit pension.
  2. Inheritance tax: Transferring your pension may impact inheritance tax liabilities for your beneficiaries, with QROPS offering more favourable terms in certain jurisdictions.
  3. Tax on lump-sum withdrawals: The tax treatment of lump-sum withdrawals may differ between UK pensions, QROPS, and SIPPs, depending on the specific rules of the receiving scheme and your country of residence.

British expats must consult a financial adviser experienced in cross-border expat pension transfers to assess the tax implications of transferring a defined benefit pension.

Titan Wealth International-Group provides tailored advice, ensuring compliance with regulations and optimising your pension assets per your financial objectives.

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