Merry Christmas From All At Blacktower… And A Final Word On Recent Pension Changes!

 

Advice

Merry Christmas From All At Blacktower… And A Final Word On Recent Pension Changes!

The recent budget has thrown up some interesting dilemmas within the world of pensions, namely that, as of the 30th November 2021, you no longer have the Statutory right to transfer from your current pension scheme.

What does this mean in reality?  Well, a new system of Red and Amber flags has been introduced, which could mean that your pension company can refuse a transfer request if certain criteria are not met and a “Red Flag” is raised.  This may have dire consequences for non-UK residents, who are, after Brexit, already struggling with some pension companies, to maintain flexible access to their pensions.  However, from our internal analysis there should be very few occasions, if any, when this happens, as long as you are prepared to provide all the necessary information to your adviser and pension company in order to complete the transfer satisfactorily.

If an Amber flag is raised, which is the more likely scenario, as one of these flags concerns proof of overseas residency, then an additional stage of speaking with the Government MoneyHelper service will be necessary. Their key aim is to help avoid pension scams, which can only be a good thing for all, namely the scheme member and the finance industry, as a whole.

Generally, these changes should not have a big effect, other than to potentially extend the time it may take to transfer, but increasingly we are experiencing pension companies penalising their non-UK resident members with loss of flexibility and/or difficulty making adhoc withdrawals.  Add to that the fact that due to increasing costs of PI (Professional Indemnity) cover, that all regulated firms have to have in place to protect their clients, many of the UK pension companies are increasing the minimum amount they will accept in, as a transfer, to £250,000.  Therefore, if you have a smaller pension, or a few smaller pensions, that you wish to transfer the time you may have left to do this could be limited, if others follow suit.

If this is something you have been thinking about, but not yet done anything about, now is the time to take action and advice…..don’t put it off for another year because who knows what changes may occur in the next March budget!

Blacktower will be by your side both now and in the future, we are here to help you. To arrange a professional and impartial consultation please contact me by email [email protected] or call me on 06 38 86 99 70. Website: www.blacktowerfm.com

This article is based on the opinion of the financial adviser and author, and does not reflect the views of Blacktower. The above information is based on current legislation which is subject to change and does not constitute as investment advice, or investment research and you should seek advice from a professional adviser before embarking on any financial planning activity.

Blacktower Insurance Agents & Advisors Ltd is regulated in Cyprus by the Insurance Companies Control Service and registered with ORIAS in France. Blacktower Financial Management (Cyprus) Ltd is regulated in Cyprus by the Cyprus Securities & Exchange Commission and is registered with the AMF in France.

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