Do's and Don'ts For UK Pension Transfer

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Simple guide and advice for anyone with a UK Pension

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Do's and Don'ts For UK Pension Transfer

  1. 1. The do's and don’ts of UK pension transfers<br />Cornel Sampson BSc (Hons),Associate Partner<br />AISA International sroŠtítného 202/35, <br />130 00 PrahaOffice +420 222 361 850<br />1<br />WELCOME TO THE AISA GROUP<br />
  2. 2. Contents<br />Introduction ............................. 3<br />What you should do ................ 6<br />What you should not do .......... 11<br />About Aisa ............................... 22<br />Awards ...................................... 27<br />Customer Charter .................... 28<br />Contacts ................................... 39<br />WELCOME TO THE AISA GROUP<br />2<br />
  3. 3. WELCOME TO THE AISA GROUP<br />The do's and don’ts of UK pension transfers<br />3<br />
  4. 4. WELCOME TO THE AISA GROUP<br />The do's and don’ts of UK pension transfers<br /> An Increasing numbers of UK Expats are switching their pensions. The reasons vary, with some looking for better fund performance, reduce tax liability, lower charges, and increase benefits to their family.<br />4<br />
  5. 5. The do's and don’ts of UK pension transfers<br /> An Increasing numbers of UK Expats are switching their pensions. The reasons vary, with some looking for better fund performance, reduce tax liability, lower charges, and increase benefits to their family.<br />Whatever the reason, if you're thinking of transferring<br /> a pension, it's important you first take expert advice. Before you do that, here are a few do's and don'ts. <br />WELCOME TO THE AISA GROUP<br />5<br />
  6. 6. WELCOME TO THE AISA GROUP<br />6<br />What you should do<br />
  7. 7. WELCOME TO THE AISA GROUP<br />What you should do<br />• Go to a specially licensed independent financial adviser. <br />7<br />
  8. 8. WELCOME TO THE AISA GROUP<br />What you should do<br />• Go to a specially licensed independent financial adviser. <br /><ul><li>Demand a transfer value analysis. This is a computerised calculation which allows you to compare the benefits of your frozen pension with the alternatives. It also gives a critical yield (usually between 7-11 per cent), which indicates how fast an alternative scheme will have to grow to match the benefits in your old pension. If the critical yield is 8 per cent or less, then a transfer may be worth considering. </li></ul>8<br />
  9. 9. WELCOME TO THE AISA GROUP<br />What you should do<br />• Go to a specially licensed independent financial adviser. <br /><ul><li>Demand a transfer value analysis. This is a computerised calculation which allows you to compare the benefits of your frozen pension with the alternatives. It also gives a critical yield (usually between 7-11 per cent), which indicates how fast an alternative scheme will have to grow to match the benefits in your old pension. If the critical yield is 8 per cent or less, then a transfer may be worth considering. </li></ul>• Consider your retirement options. Are you intending to retire early? Check if the scheme to which you are switching has the flexibility to handle your requirements. <br />9<br />
  10. 10. What you should do<br />• Go to a specially licensed independent financial adviser. <br /><ul><li>Demand a transfer value analysis. This is a computerised calculation which allows you to compare the benefits of your frozen pension with the alternatives. It also gives a critical yield (usually between 7-11 per cent), which indicates how fast an alternative scheme will have to grow to match the benefits in your old pension. If the critical yield is 8 per cent or less, then a transfer may be worth considering. </li></ul>• Consider your retirement options. Are you intending to retire early? Check if the scheme to which you are switching has the flexibility to handle your requirements. <br />• Check on the financial position of your old scheme. If it is in surplus (it has more assets than pension liabilities) it may be advisable to stay with the scheme. <br />WELCOME TO THE AISA GROUP<br />10<br />
  11. 11. WELCOME TO THE AISA GROUP<br />11<br />What you shouldn't do<br />
  12. 12. WELCOME TO THE AISA GROUP<br />12<br />What you shouldn't do<br />• Don't switch from your existing occupational pension scheme into which both you and your employer are currently making contributions. No private pension scheme can match the benefits provided by your employer. A transfer should only be considered if you have left your employer. <br />
  13. 13. WELCOME TO THE AISA GROUP<br />13<br />What you shouldn't do<br />• Don't switch from your existing occupational pension scheme into which both you and your employer are currently making contributions. No private pension scheme can match the benefits provided by your employer. A transfer should only be considered if you have left your employer. <br />• Don't transfer from a public sector pension scheme, such as the nurses' or the teachers' scheme, even if you left their employment several years ago.<br />
  14. 14. What you shouldn't do<br />• Don't switch from your existing occupational pension scheme into which both you and your employer are currently making contributions. No private pension scheme can match the benefits provided by your employer. A transfer should only be considered if you have left your employer. <br />• Don't transfer from a public sector pension scheme, such as the nurses' or the teachers' scheme, even if you left their employment several years ago.<br />WELCOME TO THE AISA GROUP<br />These schemes are guaranteed against inflation no matter how much it rises in future. Unlike other schemes they also allow "linking" of different service years if someone returns to teaching or nursing after several years' absence. Some companies place a blanket ban on accepting transfers from these schemes, in the knowledge that the benefits cannot be matched. <br />14<br />
  15. 15. WELCOME TO THE AISA GROUP<br />15<br />What you shouldn't do<br />
  16. 16. WELCOME TO THE AISA GROUP<br />16<br />What you shouldn't do<br />• Don't transfer from a pseudo-public sector scheme, such as the Mineworkers' or Water schemes. These offer extremely generous <br />range of benefits which are difficult to match elsewhere. <br />
  17. 17. WELCOME TO THE AISA GROUP<br />17<br />What you shouldn't do<br />• Don't transfer from a pseudo-public sector scheme, such as the Mineworkers' or Water schemes. These offer extremely generous <br />range of benefits which are difficult to match elsewhere. <br />• Don't transfer without checking the death benefits of the former scheme, which may not be matched in a personal pension without having to buy a life insurance policy. <br />
  18. 18. What you shouldn't do<br />• Don't transfer from a pseudo-public sector scheme, such as the Mineworkers' or Water schemes. These offer extremely generous <br />range of benefits which are difficult to match elsewhere. <br />• Don't transfer without checking the death benefits of the former scheme, which may not be matched in a personal pension without having to buy a life insurance policy. <br />WELCOME TO THE AISA GROUP<br />• Don't transfer if your previous employer's scheme was money purchase, where your pension depends on the amount in your fund at retirement. These are effectively already a personal pension and a transfer to another personal pension is unlikely to be advisable. <br />18<br />
  19. 19. WELCOME TO THE AISA GROUP<br />19<br />What you shouldn't do<br />
  20. 20. WELCOME TO THE AISA GROUP<br />20<br />What you shouldn't do<br />• Don't transfer if you have just a small amount of money accrued in your former pension. It's only worthwhile considering a transfer if<br /> the amount is worth more than £10,000. The cost of a transfer is usually about 5 per cent of the total pension pot, paid out in <br />commission to the adviser and charges by the pension provider. <br />
  21. 21. What you shouldn't do<br />• Don't transfer if you have just a small amount of money accrued in your former pension. It's only worthwhile considering a transfer if<br /> the amount is worth more than £10,000. The cost of a transfer is usually about 5 per cent of the total pension pot, paid out in <br />commission to the adviser and charges by the pension provider. <br />•Don't switch if you are less than ten years to retirement, unless the benefits of income drawdown (avoiding low annuity rates by keeping your pension pot invested) outweigh the benefits of a secure payout. <br />WELCOME TO THE AISA GROUP<br />21<br />
  22. 22. WELCOME TO THE AISA GROUP<br />22<br />WELCOME TO THE AISA GROUP<br />
  23. 23. WELCOME TO THE AISA GROUP<br />23<br />WELCOME TO THE AISA GROUP<br />AisaInternational<br />The philosophy of business: to assist clients in successfully managing their capital, to safeguard it and to make investments. Aisa International is a financial services company, licensed and regulated in the Czech Republic by the Czech National Bank. It is also a member of AFIZ (Association of Financial Advisers and Mediators of Czech Republic).<br />
  24. 24. WELCOME TO THE AISA GROUP<br />AisaInternational<br />The philosophy of business: to assist clients in successfully managing their capital, to safeguard it and to make investments. Aisa International is a financial services company, licensed and regulated in the Czech Republic by the Czech National Bank. It is also a member of AFIZ (Association of Financial Advisers and Mediators of Czech Republic).<br />It has an office in Prague, and is the sister company of AisaProfessional (UK).The aim of Aisa International is to work throughout Central and Eastern Europe with discerning individuals and companies who require the expertise and knowledge of professional UK trained and qualified financial advisers. Aisa International is able to offer these services to private individuals, businesses and institutional investors such as government and state bodies. <br />WELCOME TO THE AISA GROUP<br />24<br />
  25. 25. WELCOME TO THE AISA GROUP<br />AisaProfessional<br />25<br />
  26. 26. WELCOME TO THE AISA GROUP<br />26<br />AisaProfessional<br />AisaProfessional Is a UK authorised and regulated firm of Independent Financial Advisers established in 1999. Since being established, it has built a reputation for a high quality advice and service to individuals, business owners and institutional investors such as government agencies and pension funds. All advisers work towards achieving the highest qualifications available. The firm advises on many millions of dollars in a wide range of investments and across a wide range of tax jurisdictions.<br />
  27. 27. WELCOME TO THE AISA GROUP<br />27<br />AisaProfessional<br />AisaProfessional Is a UK authorised and regulated firm of Independent Financial Advisers established in 1999. Since being established, it has built a reputation for a high quality advice and service to individuals, business owners and institutional investors such as government agencies and pension funds. All advisers work towards achieving the highest qualifications available. The firm advises on many millions of dollars in a wide range of investments and across a wide range of tax jurisdictions.<br />
  28. 28. Awards – by the Aisa Group<br />WELCOME TO THE AISA GROUP<br />28<br />
  29. 29. WELCOME TO THE AISA GROUP<br />29<br />Customer Charter<br />We provide a customer charter to our clients, and we offer the most competitive terms, bettering any legitimate deal that can be evidenced.<br />The Main Benefit To You<br />The “Aisa Group” deal exclusively with pension providers that comply with both the spirit and the letter of the UK QROPS regulations. We believe this to be in the best interests of our clients and in our own professional best interests. Uniquely we offer the best of the UK IFA spectrum, with our international experience<br />
  30. 30. WELCOME TO THE AISA GROUP<br />30<br />The advice we provide is free and without obligation.<br />Please email us at support@aisainternational.czto request a free no obligation consultation with one of our professionally qualified pensions advisers. <br />If you’re in a hurry, why not call<br />Cornel on: 0420 222 361 850<br />

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