News & Insights

Good news on pension exit fees

There is already the facility in place for the FCA to cap excessive penalties, but following the recent announcement commentators are suggesting that the rate could be set to zero which is excellent news for ex-pats considering taking advantage of transferring to a QROPS. 

Some providers are moving to scrap the fees before the FCA intervenes, preferring a form of self-regulation rather than official intervention.  An interesting side effect of this is that, potentially, the net could be widened to halt exit penalties on life insurance and endowment products.  Such exit penalties were written into millions of pension and other policies sold in the 70s, 80s and 90s. 

Meanwhile, evidence is also mounting that insurers’ record-keeping is so poor that savers’ exit charges will have to be wiped because they cannot be calculated accurately. Experts are now warning pension savers in their 50s and early 60s to check the value of their pensions as widespread erroneous records mean there is a high chance of miscalculation.

If any of the above strikes a note with you, given that you will be relying on your pension for long term provision, you should seek advice from a reputable Independent Financial Adviser before taking any action.  An hour’s discussion could significantly alter your future lifestyle for the better. Fill in a contact form to get in touch with Blacktower today.


Other News

Keeping the NHR Tax Regime Could Be Good for Portugal in 2018

Cave on beach in PortugalIn September 2017, it was announced that the Portuguese Government, following pressure from Sweden and a number of other European countries, was looking to water down the country’s non-habitual residency (NHR) tax regime, potentially bringing to an end a programme that has worked in the interests of expats since 2009. The uncertainty this proposed move provoked certainly threatened to put a dampener on the financial plans of quite a number of expats and would-be expats as they moved into 2018.

However, the budget proposal presented by the Portuguese government in November seemed to allay these fears. There was not a single mention of the scheme, which would have seen the introduction of a flat rate of tax of either 5% or 10% on income drawn from the pensions of NHRs.

In all probability any such move would have seen the pensions of existing expat NHRs unaffected; however, it would have presented a significant stumbling block to the retirement plans of many looking to move both their wealth and their residence status to the country.

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Life Assurance – an Investment Tool for the Expat in Portugal

Life assurance is an important, although sometimes overlooked, wealth management tool for the expat retirement investor living in Portugal.

There are many potential advantages to life assurance products in Portugal, not least the fact that financial assents under contract do not attract capital gains or income taxes provided that no surrender occurs.

Read More

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