European Union Retirement Benefits Scheme (EURBS)

Transcription

1 European Union Retirement Benefits Scheme (EURBS) 1

2 AMA EURBS Contents Introduction...2 About EURBS...3 Advantages of EURBS Eligibility Criteria Major advantages of transferring your pension into a EURBS programme EURBS vs EU Based Pension Scheme...4 EURBS Transfer Procedure in 7 steps...5 Principle Benefits now that your pension is based overseas EURBS Considerations...6 How to Calculate your Pension Funds Different Policies and Norms in Europe Payment Instructions Why work with Austen Morris Associates?...7 Our Global Reach...8 Introduction Living as an international citizen has many challenges which impact one s lifestyle. It also offers great opportunities when planning your financial future. Today there are new options to ensure your pension is secure and yielding growth. Through the European Union Retirement Benefits Scheme (EURBS), most European citizens living overseas may now transfer their accumulated pension savings into a more tax-efficient jurisdiction. According to the results of our latest study, over 2.2 million emigrants have left Europe in the last two years alone, looking to invest their employment and future aspirations abroad and this figure is only going to increase over time. This trend is due to the ongoing economic instability faced by many European nations and consequently the potential for people to create a better future abroad. With the European economy becoming increasingly unstable, working abroad presents many significant advantages, and it may soon become the only option for some who want to invest in a specific area or provide themselves more constant and diverse growth. With over 20 years experience of assisting international clients, Austen Morris Associates has established strong partnerships with many leading investment houses. This allows us to provide expert advice when it comes to navigating the wide range of products available, and to recommend the best strategy specifically for international investors seeking to invest their pension scheme globally. In this guide you ll find strategies and tools to ensure that you have the most effective retirement plan possible with regard to your specific situation. Read on to learn about the benefits of EURBS and how transferring your pension can advantageously contribute to your future prosperity. Since everyone s financial situation is different, we always recommend that you meet one-on-one with an Austen Morris Associates Consultant to discuss the most suitable path for you. 2

3 About EURBS Advantages of EURBS It is becoming increasingly common for European investors to place their pension schemes in more tax-efficient and trustworthy jurisdictions. This is due not only to the enforced legislation principles and retirement eligibility requirements, which differ from country to country, but also because the diversity of investment opportunities offered abroad is far more widespread than those offered strictly within Europe. Due to recent European Union legislation changes, we have reached a financial era of unprecedented freedom in which individuals are able to manage their own substantial pension funds. Transferring your existing pension into a EURBS scheme, if formulated correctly, will not only provide a myriad of benefits, but also enable you to claim a considerable lump sum, exempt from taxes. Furthermore, you will have the ability to pass on your residual pension funds to your chosen beneficiaries in your Will.Depending on your nationality and country of residence, one of the most highly recommended European nations to transfer your pension is Malta. It has extremely low taxes and over 57 double taxation treaties, which is more than is held by many other countries. Other recommended locations include Croatia, Denmark, Estonia, Greece, Italy, Latvia, The Netherlands, and Poland. In accordance with the Schengen Agreement passed in 1985, it is now possible to transfer goods, services or capital stocks to another country without additional charges. As such, if you choose to apply for EURBS, you will gain access to numerous benefits and worthwhile investments that will help enrich your retirement years. EURBS offer the advantages of flexibility and freedom of investment choices. Importantly, they will save you hidden tax expenses when recouping your income by exclusively enabling you to pass on the entirety of your savings to your chosen beneficiaries, excluding any unnecessary third parties, such as a government, from getting involved and claiming a considerable portion of your estate. Eligibility Criteria Major advantages of transferring your pension into a EURBS programme include: To be eligible to register for the EURBS, you must be between 18 and 75 years old, have accumulated a minimum amount of 50,000 in your pension plan and be aiming to retire abroad. If you already live abroad as an expatriate, and have accumulated a minimum amount of 50,000 in your pension, then you will have automatically qualified. If you meet all of the above criteria, then EURBS is a very good option for you. To register for EURBS, we encourage you to speak directly with one of our experienced Austen Morris Associates Financial Consultants today. There is no charge for our expert advice. Far greater investment freedom Tax efficient investing in a wider range of funds Withdraw up to 30% of the fund in a lump sum, exempt from taxes Ability to pass on retirement funds to your desired beneficiaries upon your death Tax reductions upon death or passed on to an heir (IHT) Increased incomes in drawdown Liberty and flexibility to decide on currency of transactions Tax planning opportunities 3

4 EURBS vs EU Based Pension Scheme EURBS EU Based Pension Scheme EURBS is designed for a more transient population and international advisers are more familiar with their requirements. EU-based pension schemes are designed for Europeans, and it can be very challenging to liaise and seek for European pension advice when outside of Europe. You may invest in assets in most currencies, and choose to receive payments in your local currency, allowing the privilege you to eliminate multi-currency risk. The majority of transferred investments are processed in Euros ( ); therefore payments are influenced by currency conversion rates. EURBS gives you the option to choose the year of your employment resignation. EU civilians have no or restricted access to workforce pensions, and are therefore obliged to abide by each country s designated retirement age. EURBS allows you to withdraw up to 30% of the fund as a lump sum. Most of the EU schemes entitle you to apply for a maximum lump sum of 25%. The existence of The Double Taxation Agreement with the EURBS jurisdiction eliminates the risk of being taxed twice. Your pension income will be surcharged, according to European legislations, and any claim will invoke additional charges, differing from region to region. The EURBS is tax efficient, and tailored to the arrangements of your pension fund. EURBS gives you the ability to decide to whom and the proportion of pension funds you wish to pass on your beneficiaries or heirs. EURBS supplies you with a better and far less regulated tax jurisdiction compared to an EU based pension scheme. It also offers more benefits in terms of return on investment value, which will enhance your overall experience. If you possess a robust history of employment in numerous European nations, your accumulated savings will not be reflected in the pension savings you receive back, as each EU nation will have taxed their respective portion differently in accordance with their individual tax regulations. In the event of death, any lump sum withdrawal by the beneficiaries will be subject to 45% tax. This excludes additional inheritance taxes (IHT), at an additional 40%, if it is not absolutely clear whom of your beneficiaries shall claim the remaining amount. With a regular EU pension you are constrained and limited by your scheme s capabilities that can be challenging to manage. With EURBS you are neither obliged nor enforced to submit a fixed annual income payment. Hence funds are secure indefinitely and flexible, according to your needs. There is no need to purchase an annuity at any age in EU, nevertheless the funds can be withdrawn directly, but are subject to limitations (income drawdown). 4

5 EURBS Transfer Procedure in 7 steps Principle Benefits now that your pension is based overseas 1. Contact Austen Morris Associates enquiries@austenmorris.com. 1. You may now increase your monthly income from your current pension plans without having to worry about the risks associated with currency and tax fluctuations 2. An Austen Morris Associates consultant will assess your enquiry and verify you qualify by meeting all the Eligibility Criteria. 2. You are in complete control of your retirement assets, with the option to select your beneficiaries 3. You are not required to purchase or subscribe to any annuity fees 3. Variations: a. Upon success, Austen Morris Associates will send you a Letter of Authority (LOA) allowing them to act on your request. b. If you do not either hold any employment contracts or qualify for this scheme, then the Consultant will advise you on other options accordingly. 4. Potential for augmented growth of your fixed retirement assets and reduced administration fees 4. You will be asked to acknowledge the terms and conditions on the form by signing and returning the LOA to Austen Morris Associates office either via or fax. 5. Austen Morris Associates will contact the existing European region provider(s), based on the country(ies) where you have previously worked. 6. Austen Morris Associates will confirm that the request can be accommodated and ascertain that the pension funds have been transferred out to EURBS. 7. Following steps: a. Discharge forms will be sent to the existing provider(s) and tax authority(ies). b. The Application transfer form is sent to the EURBS Pension Funds Trustees, to initiate and approve that the EU pension plan assets to go to the destined EURBS Offshore Division. 5

6 EURBS Considerations If you formerly worked in several European countries, there is a high probability you have accumulated relevant pension rights in each of them. In this case you are advised to apply for a pension authority claim form in the country where you currently reside or formerly worked. Nonetheless, if you have never worked in the country in which you are now living, then your new country of residence can forward your claim to the previous country you worked in, as it is responsible for consolidating all your past invested contributions. Requests to obtain access to your retirement funds can often be a lengthy procedure, and as such should be made roughly 6 months in advance. In regard to the provision of documents, you will be required to provide bank details and some government issued identification, including your passport. How to Calculate your Pension Funds For the European equivalent rate, the pension authority legislation body will add all the financial contributions you have made within the various countries and estimate the retirement funds that should normally be attributed to you, over the entire time, known as the Theoretical Amount. This amount will be then adjusted to reflect the realistic period of time you were insured in that country, known as the Pro-rata Benefit. On the other hand, for the national rate, the indicated body can only evaluate it, if the conditions of the national pension entitlement are successfully met, known as the Independent Benefit. Finally,, the national authority will compare both the pro-rata and independent benefits, and will bestow upon you whichever possesses the highest value from the given European region. You will then receive an informative P1 document, explaining explicitly your grant status. Different Policies and Norms in Europe Depending on the country where you currently reside, you will need to abide by the legal retirement age of each nation, given the fact that you have been granted pension rights. However, if you decide to resign earlier for any reason, it may impact the amount you to which are entitled through your pension. Therefore, you should seek our professional advice to avoid any potential risks. With most European nations, you must have met the minimum required employment period specific to your region before claiming any employment benefits. However, each pension authority legislation body will assess your eligibility standards, and confirm if you have met successfully all of their criteria. Please contact one of our Austen Morris Associates Consultants for additional assistance if you have any problems. Payment Instructions Each nation submits the corresponding savings into the client s valid bank account, given the fact that you still reside within Europe. If you do not, you may still open a European bank account under your name s jurisdiction in order to access them.if you attempt to claim an invalid retirement fund, the action may raise suspicions and could escalate the severity of the situation. Moreover, several European nations may not indemnify you with a survivor pension, for instance, if your spouse works abroad and you are relying on their income. Your Austen Morris Associates Consultant will be there to help and guide you through all these processes. 6

7 Why work with Austen Morris Associates? EURBS will provide you with a wide range of potential routes and alternative solutions, one of which will fit your needs To understand and select an option it is vital to fully acknowledge and comprehend which jurisdiction is best suited for your needs. With over 20 years experience of assisting international clients, Austen Morris Associates has established strong partnerships with many leading investment houses. This allows us to provide expert advice when it comes to navigating the wide range of products available and to recommend the best strategy specifically for international investors seeking to invest their pension scheme globally. Therefore, if you are an existing EURBS client or aim to alter your retirement funding plans to a EURBS, we recommend that you speak with one of our experienced Austen Morris Associates Consultants, who will evaluate and determine the best possible solution for you, taking into account the nature of the ever-changing market. Contact Austen Morris Associates to better understand how we can help you with asset investment planning at enquiries@austenmorris.com. 7

8 Our Global Reach AMA website: In the countries we call home, our purpose will always remain the same: Austen Morris Associates is committed to rewarding partnerships. WeChat official account: After you have read the Education Fee Planning guide, please contact us through our Live Chat, at one of our Office Addresses below or us one of the addresses below. Enquiries: Client Services: Careers: Marketing: China Office 19th Floor, Guangfa Bank Tower 555 Xujiahui Lu, (near Luban Rd) Shanghai, , China Tel + 86 (21) Fax +86 (21) South Africa Office 1st Floor Stemcor House, The Braes, 193 Bryanston Drive, Bryanston, Sandton, Johannesburg SA, 2191 Tel +27 (0) GPS , Philippines Office 20th Floor, Picadilly Star Building 4th Avenue corner 27th Street Bonifacio Global City, Taguig Manila, Philippines 1634 Tel Cape Town Office Suite 323, 3rd Floor, The Business Centre No 1 Bridgeway Road, Bridgeways Precinct Century City, 7441 Tel +27 (0) GPS ,