International money transfer guide for pensions

Whether you are living abroad and receiving a pension from your home country or are thinking of moving your pension pot to a new country, money transfer providers can help make this movement of funds internationally significantly easier and also save you money in the process.

How to receive your overseas pension payments regularly

If you receive overseas pension payments regularly, then it likely makes sense to set up a regular overseas payment plan as this will be the easiest and cheapest way to continue to receive the payments in your new country. There will likely be some quick savings for fees and also depending on the amounts being sent, savings to be made in terms of the exchange rate offered.

Transferring your pension to a new jurisdiction

If you are looking to move your entire pension to a new jurisdiction and change the currency it is held in, then there is a great opportunity to increase the amount received by working with a money transfer provider. You could be moving a significant sum of money and obtaining a better exchange rate than what your bank could offer.

What to look for when moving your pension overseas

What form does the new pension scheme take

If you are planning to move your pension overseas, be sure to check what the new type of pension or retirement plan is. Your existing pension may be of the form of a defined benefit scheme and if you move it to a defined contribution scheme, you may be worse off.

What transfer value does your pension have

If you choose to transfer out of your existing defined benefit pension, then the trustees of this pension will need to calculate the benefits you have built up into a cash amount known as the transfer value or cash equivalent transfer value. You then have to decide whether this will be invested in a pension scheme with a new employer, a buy-out contract or a stakeholder or individual pension. Not all pension or retirement schemes you look to move to will accept a transfer. Be especially careful when this is being done overseas and take professional advice before making such a move.

Are there any tax implications for moving your pension overseas

If you decide to move your pension, it may trigger a tax payment if the transfer does not meet certain criteria. This will depend on what pension you have and what country you are transferring the pension out of. This is something you should discuss with your accountant.