News & Insights

FCA Publishes Retirement Transfer Data

Back in 2018 the Financial Conduct Authority (FCA) reported that advice was suitable in fewer than 50% of pension transfer cases – a figure that fell significantly short of the 90% mark recorded in other areas of the consumer financial advice sector.*

Pension Transfer Advice Still Lacking

As a result of the 2018 findings the FCA carried out analysis of a significant amount of data to help it comprehend the defined benefit pension transfer advice market more clearly.

The FCA has now published details of pensions advice carried out by 3,015 advisory firms between April 2015 and September 2018 on pensions worth a total of £82.8 billion, with an average of individual pension value of £352,303. Interestingly, the watchdog found that 162,047 individuals – accounting for nearly 70% of clients – were advised to transfer out.*

Curiously this figure includes not only UK expat retirement transfers, but also those that relate to UK residents, a demographic that may be less likely to benefit from a transfer into a QROPS or a SIPP.

“We have said repeatedly that, when advising on DB transfers, advisers should start from the position that a transfer is not suitable,” commented Megan Butler, the executive director of supervision, wholesale and specialists at the FCA.*

Butler added that it is deeply concerning and disappointing to see that transfers are still being recommended at similar levels.

Reliable advice for one of life’s most important financial decisions

Choosing whether to undertake an expat retirement transfer is one of the most important, yet complex, financial decisions you will ever have to make. As such, it is essential that you receive reliable, regulated and impartial advice which takes full account of your cashflow needs, retirement goals, time horizon and cross-border situation.

Blacktower Financial Management provides clients with world class and independent financial advice, to help them determine whether an expat retirement transfer really is in their best interests.

We always work with our clients’ best interests in mind and are committed to providing a transparent, professional and attentive service, whatever your financial advice requirements.

For more information about how we may be able to help you achieve your retirement goals, contact your local Blacktower Financial Management office today.


Other News

Expats Can Take Advantage of Tax Changes in Murcia and Andalucía

Goals for 20182018 has brought good news for many expats tackling the idiosyncrasies of finance in Spain and, especially for those who want to manage their legacy planning successfully.

This is because British and other EU citizen expatriates in Spain have received a boost in relation to succession tax laws.

Under the Spanish regional system, expats in Spain (but not those from outside the EU or EEA) can avoid costly Spanish state succession rules on passing; instead they are able to take advantage of kinder regional laws, such as those just implemented by Murcia and Andalucía.

In these areas, if you have Spanish assets but have not quite yet become a fully-fledged expat or indeed if you have Spanish property but still reside full-time in the UK; your heirs, wherever they may live, are entitled to the full range of succession tax reliefs offered by the region in which your assets are invested. Sometimes this may be as much as 99% succession tax relief or, in some cases, total exemption.

Read More

Changes to the Dutch 30% reimbursement ruling confirmed

Thirty Percent SignRecent news about the 30% tax ruling in the Netherlands could have substantial implications for British expats and their financial planning and wealth management strategies.

The 30% tax ruling for expats in the Netherlands enables employers to offer working expats 30% of their salary tax-free as long as they meet certain requirements. The intended aim is to encourage highly skilled workers from around the globe to bring their expertise to the Netherlands. After all, relocating to the Netherlands is not cheap, and the tax advantage is there to help offset all the expense that comes with relocating. There are approximately 60,000 expats who currently claim the tax break.

As we reported last year, the tax break came under fire in a report published by the Dutch research bureau Dialogic for being far too generous and, therefore, costing the Dutch government too much money for it to be sustainable. When published in June 2017, the report suggested several reforms to the system, including shortening the number of years that expats could claim the tax-relief from eight years to five. This was because research carried out by Dialogic found that the vast majority of expats making use of the benefit (80%) claimed it for fewer than five years; less than 10% actually claimed the benefit for the full eight years.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information:

You are currently viewing the Blacktower Financial Management EU website.

You may be looking for the Blacktower United States website.

Blacktower United States > X Stay on this site

Or choose your country.