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Expats a Factor in Huge Pension Withdrawals

The high level of withdrawals highlights just how bold and innovative savers can be once they are granted the freedom and flexibility to do as they wish with their pensions rather than being saddled with the passive and sometimes disempowering pension rules of a few years ago.

Many are not simply withdrawing their money and spending it or indeed investing it in the stock market. Instead, they are choosing other methods of taking their pension, including expat pension transfers such as QROPS and SIPPs.

The figures are also further proof of the moribund state of final salary schemes; many savers are taking the option of receiving a lump sum payment in exchange for the cancellation of their final salary scheme. This is an arrangement that seems to be suiting both savers and the administrators of final salary schemes.

However, there are some concerns that the level of pension withdrawals could be a sign that some savers are making irresponsible or ill-informed decisions that could place their future financial security in jeopardy. As such, every saver should consider that the freedoms afforded by the pension reforms place an additional emphasis on the need for trusted professional advice when making decisions about how to transfer or invest pensions. Any desire to scrimp in this regard is likely to prove a false economy.

Good advice can help savers make solid plans and contingencies that align with their strategies, goals and projected timescales. This is hard enough for most investment professionals to achieve, let alone the lay investor.

Interestingly, the FCA figures reveal that close to 40% of the withdrawals were made by savers between the ages of 55 and 65, with the majority taken as a lump sum; it is clear that today’s savers are seeking to do things are on their own terms, but do so successfully good advice is critical.

Speak to Blacktower today for expat pension planning advice and information on the full gamut of wealth management and investing opportunities available to you as an expat.

Other News

AROUND THE BRANCHES – Portugal Still Reliant on Foreign Investment

Election 2019This week we look at what the recent re-election of the Socialists in Portugal means for expats and foreign visitors.

While Prime Minister Antonio Costa may be jubilant, it is likely that he will continue to rely on the investment and economic stimulation generated by foreign citizens and expats if he is to help the country keep its spiralling debt under control.

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Client Bulletin

Blacktower LogoThe health and safety of our clients and all associated with our company is of paramount importance and as such we would like to share some information about the steps we have taken to ensure the welfare of all those concerned. Our response takes account of WHO and local Governmental guidance in addition to our existing business continuity and scenario planning.
 

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