What’s Your Retirement Income Outlook?
The pension freedoms of 2014 radically altered the way many expats are now able to access their retirement funds. The changes, which came into force in April 2015, ended the age of annuity-by-default and allowed people to take multiple tax-free sums, have flexible options regarding income drawdown and provided more scope for expat pensions and transfers into schemes such as SIPPs and QROPS.
However, although these changes have been empowering, they do place a greater emphasis on the need for trusted expat financial advice, particularly for those who wish to maintain the same standard of living they have enjoyed while working once they are retired and have to live entirely of the retirement income generated by their pensions and other assets.
PM Johnson Could Halt the Threat of No-Deal Litigation
Boris Johnson's elevation to Prime Minister of the United Kingdom has again raised the spectre of a potential no-deal Brexit.
Against this background, it is looking increasingly plausible that predictions of legal action against the UK government by British expats in the EU could become a reality unless the PM takes action. Even in the days before Johnson's win over Jeremy Hunt in the Conservative Party leadership election, it was warned that expats in Europe could take legal action and sue for loss of rights.
Conservative MP Alberto Costa warned Boris Johnson in a letter dated 20th July 2019*, that unless he was able to tackle the many issues facing expats, his government could be overwhelmed by legal action.
Blacktower’s Nexus Fund Reaches £100m Milestone
London – July 2019: Leading wealth management provider, Blacktower Financial Management Group has announced value of £100m under its Nexus Global Solutions Portfolio. Launched in 2013 and managed by industry heavyweight, Quilter Cheviot, the funds, Nexus Global Dynamic Portfolio and Nexus Global Solutions Portfolio, were originally conceived by Blacktower Group as means to provide its clients with access to award-winning investment DFM solutions. The Nexus Solutions Portfolio is managed by David Miller, Investment Director of Quilter Cheviot.
Self-Employed Neglecting Their Retirement Plans
If you work for yourself and do not take sufficient steps to invest for later life, you risk an uncertain financial future and may even court the possibility of running out of money at some point in your retirement.
Increasing numbers of successful individuals are forging their own path in life and forsaking conventional career routes, along with conventional pension payment schemes, in favour of the freedoms and innovations of self-employment.
Unfortunately, some freelancers and business owners are so focused on their work at hand that they neglect the necessity of pension planning – an approach that may prove detrimental in the long-run.
Financial Advice or Financial Information?
Regulation is essential in the financial services sector. Not only does it help you ensure that you are receiving financial advice from a professional with a minimum level of expertise, it also enables you to have confidence that you are dealing with someone who is legitimate, rather than a fraudster
Sadly, the cases in which people have lost their money are proof positive that some people are not what they seem.
Regulation is crucial because it provides a framework for outlining the kind of services and advice you might receive; bringing a level of consistency, predictability and reliability to the financial services sector.
FCA Publishes Retirement Transfer Data
There are few, if any, financial decisions as important as deciding what to do with your pension. Nowadays there are so many choices, but the factors that influence the path you choose are complex and should only ever be undertaken in full knowledge of the various options available as well as their many implications.
For example, significant numbers of UK citizens abroad are likely to benefit from an expat retirement transfer, but converting a defined benefit (DB) scheme into a QROPS or SIPP should never be undertaken without reliable and impartial advice that takes full account of the retirement saver's circumstances.
Unfortunately, it can be difficult to find an expat financial adviser who understands all the regulatory and cross-border wealth planning issues at stake.
Rise in Red Flag Activity Not as Simple as Stats Suggest
UK pensions consultancy, XPS Pensions Group (XPS), has reported a concerning rise in "red flag" pension transfer scam activity. It says that the number of red flag incidents rose from 13% in June 2018 to 34% in June 2019 and calculated the total value of the pensions savings placed at risk during the 12-month period at £73,000,000*.
It is possible that the rise in red flags could be a by-product of the enhanced reporting processes that came into effect with the June 2018 revisions to the Pension Scams Industry Group (PSIG) Code of Good Practice (originally published in 2015). These served to highlight pension scam warning signs, to encourage greater awareness of fee and charging structures, and to improve communication between pension schemes and their members.
PRR Proposals Could Place Unfair Burden on New Expats
HMRC proposals to dispense with private residence relief (PRR) could be a stumbling block for expat's wealth management plans as significant amounts of capital gains tax relief could be lost if the proposals become law. But what is PRR, and what does PRR mean for new expats?