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How to Manage Your Retirement Savings Effectively
In an increasingly globalised world, it’s becoming more common for professionals to live, work, and retire across multiple countries. One of the most frequent examples of this is Dutch nationals who have lived or worked in the UK, contributing to UK pension schemes before returning to the Netherlands or relocating elsewhere in Europe.
While holding a UK pension can provide a valuable source of income in retirement, managing it effectively from the Netherlands can be complex. Factors such as taxation, exchange rates, and differing pension regulations must all be carefully considered.
At Blacktower Financial Management, we’ve been advising international clients on cross-border pension and wealth management since 1986. Here, we explain what Dutch nationals with UK pensions need to know — and how professional financial advice can help you protect, grow, and access your retirement savings efficiently.
Understanding Your UK Pension Options
If you’ve worked in the UK, you may hold one or more of the following pension types:
1️⃣ The UK State Pension
Dutch nationals who have lived and worked in the UK for a sufficient period (at least 10 qualifying years of National Insurance contributions) may be eligible for a UK State Pension.
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The full new State Pension is currently £221.20 per week (2024–2025 rates).
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Payments can be made to residents of the Netherlands under the UK–Netherlands Social Security Agreement.
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You can apply to receive your UK State Pension while living abroad, paid directly into a Dutch bank account in euros.
It’s important to check your National Insurance record to understand your entitlement and whether voluntary contributions could boost your pension.
2️⃣ Workplace Pensions
Many Dutch nationals who have worked in the UK will also hold a defined contribution (DC) or defined benefit (DB/final salary) workplace pension.
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Defined Contribution (DC) pensions – Your retirement income depends on contributions and investment performance.
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Defined Benefit (DB) pensions – Provide a guaranteed income based on your salary and length of service.
3️⃣ Private Pensions
You may also have a personal pension or Self-Invested Personal Pension (SIPP) established independently while working in the UK.
Challenges of Holding a UK Pension from the Netherlands
While UK pensions can be maintained from abroad, several challenges can impact their long-term value and accessibility.
Currency Risk
UK pensions are held in pounds sterling (GBP), meaning your pension income and value will fluctuate with the GBP/EUR exchange rate. For retirees spending euros in the Netherlands, this can lead to unpredictable income and reduced purchasing power during periods of currency volatility.
Taxation
Although the UK and the Netherlands have a Double Taxation Agreement (DTA), tax rules differ depending on the type of pension and residency status.
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The UK–Netherlands tax treaty generally allows pension income to be taxed in the Netherlands, not the UK.
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Lump-sum withdrawals and investment income may still be taxable, depending on the pension structure.
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Dutch residents must declare their global income, including foreign pensions, in their annual Dutch tax return.
Without careful planning, you could end up paying more tax than necessary — or failing to take advantage of available reliefs.
Limited Investment Flexibility
For Dutch nationals no longer living in the UK, accessing or changing investment options within certain UK pension plans can be difficult. Some UK providers also place restrictions on overseas residents, limiting account management or withdrawals.
What Are Your Options as a Dutch National with a UK Pension?
You don’t necessarily have to leave your UK pension where it is. Depending on your circumstances, you may have several options:
1️⃣ Leave Your Pension in the UK
For some, keeping their pension in the UK can be the simplest choice — particularly if the pension is well-performing or has valuable benefits, such as guaranteed income.
However, this approach may not be ideal if:
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You want to draw income in euros.
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You wish to avoid exchange-rate risk.
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You prefer more flexibility or control over investments.
2️⃣ Transfer to a QROPS (Qualifying Recognised Overseas Pension Scheme)
A QROPS can be a highly effective solution for Dutch nationals who want to consolidate and manage their UK pensions internationally.
Approved by HM Revenue & Customs (HMRC), a QROPS allows you to transfer your UK pension overseas into a scheme recognised for tax and regulatory compliance.
Benefits of a QROPS include:
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Tax efficiency – Pensions can be structured to match your Dutch tax residency.
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Multi-currency flexibility – Hold your pension in euros, pounds, or US dollars.
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Freedom and control – Choose how your pension is invested and how benefits are drawn.
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Estate planning advantages – Avoid UK inheritance tax (IHT) on pension funds.
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Future mobility – If you move again within the EU or abroad, your QROPS can move with you.
For Dutch residents, suitable QROPS jurisdictions typically include Malta or Gibraltar, both offering strong regulation and EU-based protections.
3️⃣ Consider a SIPP (Self-Invested Personal Pension)
If you prefer to keep your pension in the UK but want more flexibility, a SIPP might be a good alternative.
A SIPP allows:
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Access to a wider range of global investments.
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Greater transparency in how funds are managed.
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Tailored income strategies for tax efficiency.
A financial adviser can help determine whether a QROPS or SIPP is more suitable based on your total pension value, residency plans, and long-term goals.
Tax and Estate Planning Considerations
Even if your pension income is taxed in the Netherlands, you’ll need to consider how your overall assets are treated under Dutch tax law.
Key Points for Dutch Residents
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Box 1 income tax applies to pensions and employment income.
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Box 3 wealth tax applies to savings and investments above an exempt allowance.
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No inheritance tax relief exists for foreign pension funds — but UK IHT may still apply if you retain UK domicile.
Cross-border estate planning is therefore essential to avoid unnecessary taxation or administrative difficulties for your beneficiaries.
Why Professional Advice Is Essential
Managing a UK pension from the Netherlands can be highly rewarding — but also risky without proper guidance. Mistakes such as transferring to an unrecognised scheme, misreporting tax, or mismanaging withdrawals can lead to heavy penalties or losses.
Working with an experienced international financial adviser ensures that every decision you make — from pension transfers to investment choices — aligns with both UK and Dutch regulations.
How Blacktower Can Help
At Blacktower Financial Management, we specialise in cross-border pension advice for Dutch residents with UK pensions.
Our services include:
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Reviewing your existing pension schemes and options.
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Advising on QROPS and SIPP suitability.
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Coordinating with Dutch tax specialists to ensure compliance.
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Developing a retirement income strategy that maximises value and reduces tax exposure.
With offices across Europe and nearly 40 years of experience helping expatriates and returning nationals, we’re perfectly placed to guide you through every stage of your pension journey.
Take Control of Your UK Pension from the Netherlands
If you’re a Dutch national with a UK pension, your retirement savings deserve the same care and attention as your career once did.
With the right structure, advice, and planning, your UK pension can become a cornerstone of your financial security — wherever life takes you.
📞 Book your complimentary consultation today
Speak with one of Blacktower’s international pension specialists and discover how to make the most of your UK pension while living in the Netherlands.