Contact

News & Insights

Your Foreign Spouse and Your Pension

For example, whether your spouse inherits all, part or none of your private pension will hinge on the nature of the pension fund of which you are a member. As a general rule, the most common types of pension scheme operate in the following way:

  • Defined contribution schemes: the ability for you to pass on a defined contribution pension will depend on how you invested it. For example, if you die before you reach 75 and have it invested in a drawdown scheme, the fund could be inherited by your spouse tax-free if you have nominated it to be received in this way.
  • Defined benefit schemes: in most cases these pension schemes should allow your foreign spouse to receive your entitlement on your behalf – whether as a lump sum or regular payment. However, there are no guarantees in this regard, so you should check with your wealth manager to ensure that everything is in order.
  • Annuities: annuities often seem like a great idea in principle and sometimes they can be – after all they represent a guaranteed income for life. However, annuities are not actually a type of pension but are essentially a type of insurance policy you might decide to purchase with your retirement savings. Whether you are able to pass on an annuity to your spouse will depend on specific terms and conditions.
  • SIPPs: A self-invested personal pension fund can be passed on to nominated beneficiaries on your death, including foreign spouses, who then have the freedom to take the fund as a lump sum, as income or as an annuity. In other cases, your spouse might decide to leave it invested in the fund. Furthermore, if your spouse does not exhaust the fund before their death, they can pass it on again to their chosen recipients.
  • QROPS: A Qualifying Recognised Overseas Pension Scheme should allow you to pass on the full value of your pension fund to your foreign spouse on death if you die after you reach 75.

The above are purely guidelines and you should always seek advice about your particular chosen scheme either through the provider or by way of your international financial adviser, who will be able to ensure your plans for the future of your retirement savings are structured to suit your specific circumstances and wishes.

Blacktower, for Expat Pension Planning

As a leading wealth management firm with offices across Europe and the globe, Blacktower can help you with all aspects of your finances, including expat pension and financial planning such as SIPPs and QROPS. If you would like help planning your pension and shoring up your inheritance planning, speak to us sooner rather than later to ensure that everything is in order.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

TOP TIPS: Moving to Spain

Map of SpainAre you on the brink of becoming a British expat in Spain or perhaps you recently moved to Spain and are now trying to get your finances in order? With four branches across Spain, Blacktower Financial Management is ideally placed to support you.

Here we share our Top Tips to assist you on your journey with some cross-border specific financial information.

Read More

Expat financial services could help arrest income decline

New research has indicated that the income of British expats has fallen by 11% since 2005, meaning that there is now extra imperative for Brits abroad to benefit from the advice of the providers of expat financial services.

According to the study, the majority of expat pensioners live in countries within the Eurozone. As such it is possible that, for some, living and financial arrangements could be at risk in the event of Brexit, particularly as the value of their pensions has fallen by more than 4% over the past year.

Read More

Select your country

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