INTERNATIONAL RETIREMENT SOLUTIONS. Helping you plan for a comfortable retirement overseas

Transcription

1 INTERNATIONAL RETIREMENT SOLUTIONS Helping you plan for a comfortable retirement overseas

2 Choosing the most appropriate way to invest or manage your money can help you enjoy the retirement you ve always dreamed of. If you ve left the UK to work or retire overseas, this brochure helps to explain some of the retirement solutions available to you. You may already have one, or more UK pensions and are considering if you should keep them in the UK or transfer them to another scheme. Or you may just be starting to think about your investment options to fund your retirement. Please read this brochure in consultation with your financial adviser to find out more. 2

3 CONTENTS JARGON BUSTER 4 BEFORE YOU LOOK AT YOUR RETIREMENT OPTIONS - THREE KEY CONSIDERATIONS 5 YOUR OPTIONS AT A GLANCE 6 CAN I TRANSFER MY PENSION SAVINGS? 7 WHY TRANSFER YOUR PENSION? 8 YOUR OPTIONS IN MORE DETAIL 9 HOW TO TRANSFER YOUR UK PENSION TO A SIPP OR QROPS HOW DO THE SCHEMES COMPARE? WHAT RISKS MIGHT APPLY IF YOU TRANSFER TO A QROPS? 14 WHAT RISKS MIGHT APPLY IF YOU TRANSFER TO A SIPP OR QROPS? 15 WHO IS OLD MUTUAL INTERNATIONAL? 16 WHERE ARE WE LOCATED? 17 NEXT STEPS 18 3

4 JARGON BUSTER In this brochure you will find the following terms: QUALIFYING RECOGNISED OVERSEAS PENSION SCHEME (QROPS) A QROPS is a pension scheme established outside of the UK which can receive transfers from UK registered pensions, as it meets certain rules set by the UK s HM Revenue & Customs (HMRC). You can normally start withdrawing savings from your QROPS from the age of 55. QROPS offer a wide choice of investments including company shares and collective investment bonds. Generally you can invest in most currencies and then have the flexibility to receive payments in the local currency when you retire. They are typically attractive to individuals who have emigrated and are retiring abroad, mainly due to tax efficiencies. QROPS are set up under a trust deed and you, as the member of the scheme, are the beneficiary of the trust. An overseas transfer charge of 25% may apply to some transfers into the QROPS. SELF-INVESTED PERSONAL PENSION (SIPP) A SIPP is a type of UK pension scheme, registered with HMRC, which benefits from preferential tax treatment. It s established inside the UK and holds your investments until you start to take withdrawals, which cannot be before age 55. Investments are typically held, and benefits paid, in pounds sterling. Working with your financial adviser, you can select and manage your own investment portfolio from a wide range of assets (e.g., government bonds, shares, unit trusts and funds), giving your investment the potential to grow over time. OFFSHORE BOND An offshore bond is a 'wrapper' set up in an offshore location (such as the Isle of Man, Dublin or the Channel Islands) which enables tax efficient growth on investments held within it. SIPP OR QROPS PROVIDER A SIPP or QROPS provider is responsible for holding assets (pension investments) in trust on behalf of you, the beneficiary. They will help ensure that the pension scheme is managed efficiently and securely. TRANSFER VALUE ANALYSIS (TVA) The process of comparing the financial benefits of a defined benefit (final salary) pension scheme, with those that might be offered in a personal pension scheme. The TVA will be discussed by you and your financial adviser, together with your own personal circumstances, to decide if a transfer is right for you. A TVA does not apply to defined contribution pension schemes. DOUBLE TAXATION AGREEMENT Many countries have entered into tax treaties called Double Taxation Agreements (DTAs) to prevent income being taxed twice by the country where you re resident and the country where your pension is located. PENSION TRANSFER SPECIALIST (PTS) The role of the PTS is to check advice given by a financial adviser on pension transfers to ensure that a decision to transfer is right for your own personal circumstances. The PTS is an individual appointed by an advice firm who has attained certain qualifications specified by the UK s Financial Conduct Authority (FCA). CURRENCY EXCHANGE RATE RISK As expats earn an income in the currency of their new expat location (e.g., UAE dirhams), they may find that they are subject to exchange rate risk if they send money to another country or convert it to pounds sterling. Investing in an offshore bond, which gives a choice of many currencies, can help avoid this risk. LIFETIME ALLOWANCE (LIMIT) UK pensions are subject to a lifetime limit ( 1m in the 2017/18 tax year which will increase to 1.03m in 2018/19). Any savings in the pension above this limit may be taxable at a rate of up to 55%. ANNUITY When a defined contribution pension matures, you can use the money to buy an insurance policy that gives you a guaranteed income for the rest of your life. This is called an annuity. DRAWDOWN You can use an income arrangement called drawdown to withdraw amounts from your pension pot, as and when required. 4

5 BEFORE YOU LOOK AT YOUR RETIREMENT OPTIONS THREE KEY CONSIDERATIONS People s attitudes to retirement have changed. It s no longer about what we stop doing, it s about what we re going to start doing. Working part-time, exploring, discovering, developing - there is nothing retiring about how we re intending to live our lives anymore. If you ve left the UK to work or retire overseas, it s important to understand the most appropriate way to invest or manage your money to help ensure you enjoy the retirement you ve always dreamed of. You may already have one or more UK pensions and are considering if you should keep them in the UK or transfer them to another scheme. Or you may just be starting to think about your investment options to fund your retirement. BEFORE YOU LOOK INTO THE DETAIL, HERE ARE SOME IMPORTANT FACTORS TO CONSIDER: 1. Invest wisely, so that your hard earned funds grow to allow you to enjoy your retirement. 2. Consider where you are today. Do you already have pension savings which you ve built up whilst working in the UK either in a defined benefit (final salary) or defined contribution pension scheme? Alternatively, are you just starting to think about how to fund your retirement? 3. Seek professional financial advice before you start your retirement planning, or if you want to know what to do with your existing UK pension. PLEASE NOTE: While Old Mutual International itself doesn t provide a Self-Invested Personal Pension (SIPP) or a Qualifying Recognised Overseas Pension Scheme (QROPS), our offshore bonds can be held within a SIPP or QROPS. Holding an offshore bond can increase investment choice and can simplify the administration of investments, cost effectively and conveniently. The value of investments can fall as well as rise and you may not get back what you invest. See page 12 for more details on how a SIPP and QROPS compare. 5

6 YOUR OPTIONS AT A GLANCE DO YOU ALREADY HAVE A UK PENSION? If you already have a pension, your key decision will be whether it makes sense for you to keep it where it is or to transfer it and potentially simplify your tax affairs. LEAVE YOUR UK PENSION WHERE IT IS Having considered the transfer options available and taken advice, you may decide it s best to leave your UK pension(s) with your existing UK pension provider(s), for example if there are guarantees on the future income that the scheme will pay. TRANSFER INTO A SELF-INVESTED PERSONAL PENSION (SIPP) A SIPP may be worth considering if you d prefer to keep your assets in the UK (even though you ve moved overseas) and you require the ability to invest in a wide range of investments. A SIPP is a type of UK pension scheme, registered with HM Revenue & Customs (HMRC), which benefits from preferential tax treatment. It s established inside the UK and holds your investments until you start to make withdrawals, which generally cannot be before age 55. Investments are typically held and benefits paid, in pounds sterling. Working with your financial adviser, you can select and manage your own investment portfolio from a wide range of assets (e.g., government bonds, shares, unit trusts and funds) giving your investment the potential to grow over time. TRANSFER TO A QUALIFYING RECOGNISED OVERSEAS PENSION SCHEME (QROPS) A QROPS is a pension scheme established outside of the UK which can receive transfers from UK registered pensions, as it meets certain rules set by HMRC. You can start withdrawing savings from your QROPS from the age of 55. QROPS offer a wide choice of investments including shares and mutual funds. You can invest in most currencies and then have the flexibility to receive payments in the local currency when you retire. They are typically attractive to individuals who have emigrated and are retiring abroad, mainly due to tax efficiencies. An overseas transfer charge of 25% may apply to some transfers (see page 14 for more details). OR ARE YOU STARTING TO SAVE FOR RETIREMENT WHILST OVERSEAS? Alternatively, you may just be thinking about how to build up your retirement savings in your new country of residence. If so, you should consider: 1. joining your workplace pension scheme, if there is one. Talk to your employer to find out about any pension arrangements they offer. 2. re-assessing your debts and outgoings, to determine how much you can afford to invest towards your retirement. 3. thinking long-term about your investments. Old Mutual International has a range of options which might help you, including investing in an offshore bond either with a lump sum or regular savings. More detail is provided on page 16 and in our product brochures, which can be obtained from your financial adviser. 6

7 CAN I TRANSFER MY PENSION SAVINGS? Generally, you have the option of transferring your UK pension savings to another scheme, unless you have either started to receive income from a defined benefit scheme, or used a defined contribution scheme to buy an annuity. If you are taking withdrawals from a defined contribution scheme in the form of drawdown, you may still have the option to transfer. IF YOU HAVE A DEFINED BENEFIT PENSION SCHEME (DB OR FINAL SALARY SCHEME) If you have worked for a number of companies over the years, you may have one or more defined benefit pension schemes. These are also known as final salary schemes and pay the scheme member a secure income for life. Most defined benefit schemes have a normal retirement age of 65, when a member can take their pension. The amount of pension is usually based on the number of years they have been in the scheme and their salary. A defined benefit scheme will send members a pension statement periodically that will show how much their pension income might be. If you re in a private sector or funded public sector defined benefit scheme, you may be able to transfer your pension rights to a UK registered defined contribution pension scheme or a QROPS. Some schemes may allow you to access your pension savings flexibly from the age of 55 (see Pension Freedoms on page 8), which may be an attractive option. You should bear in mind. If you transfer from a defined benefit scheme you are giving up a secure retirement income, so a transfer may not be in your best interest. It is important to take financial advice before you decide to go ahead. If your defined benefit pension savings are worth 30,000 or more, you will only be able to transfer if you have obtained advice from a financial adviser firm who has the UK FCA s permission to advise on such transfers. IF YOU HAVE A DEFINED CONTRIBUTION PENSION SCHEME (DC SCHEME) With a defined contribution scheme, you build up a pot of money that you can use to provide an income in retirement. Unlike defined benefit schemes, which provide a specific income, the retirement income you receive with a defined contribution scheme will depend upon the amount of contributions paid in, the investment performance of your pension fund, and the choices you make at retirement. For example, anytime from the age of 55 (see Pension Freedoms on page 8), you can use the pension pot to purchase an annuity that provides a guaranteed income for life, or you can use an income arrangement called drawdown to withdraw amounts from your pension fund as and when required. You can transfer this type of scheme to another UK registered pension scheme, including a SIPP, or to a QROPS. 7

8 WHY TRANSFER YOUR PENSION? The decision to transfer will be based on an assessment of your needs, objectives and priorities. This is a complex decision which requires careful consideration and we believe seeking professional financial advice is critical to making the right decision. Please also refer to page 14, which details the risks involved with a pension transfer. A FINANCIAL ADVISER WILL HELP YOU TO UNDERSTAND: your existing pension(s) and whether you need to change anything your tax position in the country you reside in how your savings can meet your priorities your attitude and capacity to take investment risk how to plan your overall financial wealth and the role that your pension savings will play LIVING OVERSEAS If you are living overseas, in employment or retirement, you will need to consider local tax rules, currencies, and possibly the benefit of consolidating your pensions into one to simplify your affairs. ATTRACTIVE TRANSFER VALUES FOR DEFINED BENEFIT SCHEMES Recent economic conditions have led to companies with defined benefit schemes offering attractive transfer values. These provide tempting incentives to transfer to a defined contribution pension scheme (like a SIPP or a QROPS). Some defined benefit schemes are currently offering all-time high transfer values. However, it s important to take into account a range of other factors and not just the transfer value. Defined benefit schemes offer a guaranteed income for life that is inflation protected and the current high transfer values reflect how expensive it is to purchase these guarantees. So you should consider how important a guaranteed income would be to you in retirement, before you make any decision to transfer your scheme. As this is a complex decision, you should seek the help of your financial adviser to assess your situation. If the scheme does get into financial difficulties, the UK Pension Protection Fund (PPF) pays compensation to scheme members. Details of the compensation available from the PPF are available on: PENSION FREEDOMS FOR DEFINED CONTRIBUTION SCHEMES You may wish to take advantage of the UK pensions freedom legislation introduced in 2015, which now offers pension savers greater benefits including: the option to take your full pension pot as a lump sum from the age of 55, paying no tax on the first 25%, with the rest taxed as income removal of the 55% rate of tax on pension savings (payable by pension beneficiaries) when the pension holder dies. 8

9 YOUR OPTIONS IN MORE DETAIL MOVE TO A SELF-INVESTED PERSONAL PENSION (SIPP) MOVE TO A QUALIFYING RECOGNISED OVERSEAS PENSION SCHEME (QROPS) KEEP YOUR PENSION IN ITS EXISTING SCHEME If you would like to consolidate your pension plans and would prefer more control over your investment assets that sit within your pension, then a SIPP that holds your choice of assets may be a solution to consider. A SIPP offers the following benefits: a wide range of investment options held in a tax efficient manner the ability to personally manage your investment greater investment flexibility than if you kept your pension in its existing scheme reduction of the currency exchange rate risk if investments can be held in different currencies consolidation of pension schemes into one, providing administrative simplicity and easier investment management the opportunity to pass on your pension to your loved ones when you die. If you decide you d like to transfer your UK pension overseas, the transfer can be made to a QROPS. A QROPS may be suitable for you if want to simplify your affairs and: are living and working abroad already and want to consolidate your pension arrangements and continue saving for your retirement, or have retired abroad and you do not intend to return to the UK. A QROPS offers the following benefits: a wider choice of investment opportunities than is available from many UK registered pension schemes flexible currency options, as QROPS assets can be held and distributed in any major currency as well as in pounds sterling the ability to pass on your remaining pension funds to your family when you die no lifetime limit (see panel, right) on the amount of savings that can be accrued once your pension has been transferred to a QROPS consolidation of pension schemes into one, providing administrative simplicity and easier investment management in some cases, the option to contribute to the QROPS once it is set up. If you have a defined benefit pension, keeping it may be a good solution for you if you prefer a secure income stream over your lifetime. If you transfer your pension rights from a defined benefit scheme, your retirement income will depend upon the performance of the investments within your pension fund. This is a complex decision and not one to take lightly. For the majority of people, keeping their defined benefit pension will be the right thing to do. LIFETIME ALLOWANCE (LIMIT) The amount you can build up in all your UK registered pensions is subject to a limit known as the lifetime allowance ( 1m in the 2017/18 tax year which will increase to 1.03m in 2018/19). Any savings in the pension above this limit will be taxable at a rate of up to 55%. If you decide to transfer your pension into a QROPS, at the point of transfer its value will be tested against the lifetime allowance - to determine if you need to pay tax. However, any future growth of the pension, once transferred into a QROPS and taken outside of the UK pension rules, will no longer be subject to lifetime allowance limits. 9

10 HOW TO TRANSFER YOUR UK PENSION TO A SIPP OR QROPS Here you can see how the transfer takes place. If you decide to transfer your pension into a SIPP or QROPS, you ll have access to a wide choice of investments. One investment option includes a packaged product called an offshore bond. The bond sits within the SIPP or QROPS (see pages 11 and 16 for more detail on an Old Mutual International offshore bond). BE REASSURED Transferring your pension is an important decision, so the UK regulator, the FCA, has ensured that if your defined benefit pension savings are worth 30,000 or more, you will only be able to transfer if you have obtained advice from a financial adviser firm who has the FCA s permission to advise on such transfers. Once you ve made your decision, you can sit back and let your financial adviser co-ordinate the parties involved in the transfer. TRANSFER STAGES A COMPARISON (KNOWN AS A TRANSFER VALUE ANALYSIS) IS MADE BETWEEN THE DEFINED BENEFIT SCHEME AND THE ALTERNATIVE SCHEME YOUR FINANCIAL ADVISER MAKES A PERSONAL RECOMMENDATION BASED ON YOUR CIRCUMSTANCES. THE ADVICE IS GIVEN IN CONJUNCTION WITH YOUR PTS YOU SIGN A LETTER OF AUTHORITY SO YOUR FINANCIAL ADVISER CAN ACCESS YOUR PENSION SCHEME DETAILS YOUR FINANCIAL ADVISER OBTAINS INFORMATION ABOUT YOU, YOUR FINANCIAL HEALTH AND PLANS (KNOWN AS A FACT FIND) KEY WHO S INVOLVED? Financial Adviser and Client Pension Transfer Specialist (PTS) Financial Adviser SIPP or QROPS Provider 10

11 SIPP OR QROPS PROVIDER APPLIES FOR AN OLD MUTUAL INTERNATIONAL OFFSHORE BOND AND INVESTS THE PENSION FUNDS FUNDS TRANSFERRED TO SIPP OR QROPS PROVIDER IN SOME CASES, THE FINANCIAL ADVISER WILL RECOMMEND TRANSFER TO A SIPP OR QROPS IF THE FINANCIAL ADVISER RECOMMENDS A TRANSFER AND YOU AGREE, INSTRUCTION IS GIVEN TO THE CURRENT SCHEME TO TRANSFER TO THE NEW PENSION SCHEME If your financial adviser recommends that you transfer your UK pension savings to an Old Mutual International offshore bond (sitting within a SIPP or QROPS) this is how it works. SIPP OR QROPS OLD MUTUAL INTERNATIONAL OFFSHORE BOND COMPANY SHARES UK PENSION SAVINGS CASH COLLECTIVE INVESTMENT FUNDS CORPORATE AND GOVERNMENT BONDS INVESTMENT ASSETS 11

12 HOW DO THE SCHEMES COMPARE? Description DEFINED BENEFIT PENSION SCHEME (FINAL SALARY SCHEME) This is also sometimes known as a final salary scheme, as the scheme will pay their scheme member a secure income for life. Most defined benefit schemes have a normal retirement age of 65, when a member can take their pension. The amount of pension is usually based on the number of years they have been in the scheme and their salary. A defined benefit scheme will send members a pension statement periodically that will show how much their pension income might be. For the majority of people, keeping their defined benefit pension will be the right thing to do. Does the scheme offer any guarantees? Residency The scheme aims to provide a defined pension. If the employer becomes insolvent and the scheme does not have enough funds to pay benefits, members will receive compensation from the Pension Protection Fund (PPF). If the member is already receiving a pension from the scheme when the employer becomes insolvent, the PPF will generally pay 100% compensation. If the member has yet to retire when the employer becomes insolvent, then compensation will be based on 90% of their pension to date (subject to a limit). Details of the compensation available from the PPF are available on: Available to UK and overseas residents. What are the currency options? There are no currency options. Pension income is paid in pounds sterling. Are there any age limits or restrictions for withdrawing funds? Can I transfer into this type of scheme from another pension scheme? Can I make additional contributions? This is subject to the scheme s rules. Some schemes may allow members to take their pension before the normal age, although the pension may be reduced in value because it is starting early. This depends upon the scheme. This depends upon the scheme - many defined benefit schemes are closed to future contributions. Where can I invest my money? The Trustees of the scheme make the investment decisions. Can I take lump sum withdrawals? Ordinarily, a lump sum (free of UK tax) is available on retirement. What income will the scheme pay on my retirement? An amount of income determined by the scheme rules. The income will be subject to UK income tax, but it is possible for non UK residents to receive it paid without deduction of UK tax, subject to the provisions of any Double Taxation Agreement (DTA). What are the charges? The charges for administering the scheme are paid by the employer. What happens to the scheme s assets when I die? The benefits payable to beneficiaries depend on the rules of the scheme. Typically, the pension scheme will pay your dependants a pension when you die. How are the scheme investments managed? The pension scheme investments are managed by the trustees. The approach taken will vary from scheme to scheme. 12

13 SELF-INVESTED PERSONAL PENSION (SIPP)/ DEFINED CONTRIBUTION PENSION SCHEMES A SIPP is a type of UK pension scheme, registered with HMRC, which benefits from preferential tax treatment. It s established inside the UK and holds your investments until you start using them to provide an income from the age of 55 onwards. Investments are ordinarily held and benefits paid, in pounds sterling. They are designed for people who want to manage their own pension savings, typically giving them access to a wide range of investments. QUALIFYING RECOGNISED OVERSEAS PENSION SCHEME (QROPS) A QROPS is a pension scheme established outside of the UK which can receive transfers from UK registered pensions, as it meets certain rules set by HMRC. You can start withdrawing savings from your QROPS from the age of 55. They are typically attractive to people who have emigrated and are retiring abroad, mainly due to tax efficiencies. QROPS are set up under a trust deed and you, as the member, are the beneficiary of the trust. No No Available to UK and overseas residents. Ordinarily, investments are held and benefits paid in pounds sterling. Some schemes may allow investments to be held in different currencies. This is subject to the scheme s rules. Generally, members can start to take benefits from age 55 onwards.* Most schemes will accept transfers from other UK schemes. Designed for people permanently leaving the UK and taking their pension savings with them. You can invest in assets in most currencies and choose to receive payments in your local currency. The earliest age is 55 in respect of funds transferred from UK schemes. The jurisdiction of the QROPS may apply other restrictions. Yes, it can accept transfers from UK pension schemes. Yes, but subject to an annual allowance of 40,000 per year. Contributions by non UK residents can be made in limited circumstances. This will depend on the scheme. Some allow members to invest in a wide range of investments including funds, shares and bonds. Ordinarily up to 25% of the fund can be paid free of UK tax as a lump sum on retirement. The amount of income you will receive is not guaranteed. It will depend on the value of your pension savings at retirement. The income will be subject to UK income tax, but it is possible for non UK residents to receive it paid without deduction of UK tax, subject to the provisions of any Double Taxation Agreement (DTA). There will be a charge relating to the administration of the scheme and charges on the investments held within it. Your pension savings will be available to provide benefits to your beneficiaries. Lump sums paid on death before age 75 are normally paid free of any UK taxation. Lump sums paid for deaths after age 75 are generally subject to UK income tax at the recipient s marginal rate. A non-uk resident beneficiary could be subject to taxes in their country of residence. The scheme member must decide what assets to invest in and determine how much risk to take. Alternatively, a professional investment manager can be appointed to do this. It may be possible, subject to the scheme rules and any restrictions in the jurisdiction where the QROPS is based. Typically, these schemes offer a wide choice of investments including funds, shares and bonds. Ordinarily up to 25% of the fund can be paid as a tax free lump sum, subject to local rules. The amount of income you will receive is not guaranteed. It will depend on the value of your pension savings at retirement. There will be a charge relating to the administration of the scheme and charges on the investments held within it. A 25% transfer charge may apply to some QROPS transfers. Your pension savings will be available to provide benefits to your beneficiaries. Lump sums paid to UK beneficiaries generally receive the same tax treatment as lump sums under a UK based scheme. Taxation for non UK resident beneficiaries is complex and depends on a number of factors. Your financial adviser will confirm the position, based on your circumstances. The scheme member must decide what assets to invest in and determine how much risk to take. Alternatively, a professional investment manager can be appointed to do this. * See Pension Freedoms on page 8 for more detail. 13

14 WHAT RISKS MIGHT APPLY IF YOU TRANSFER TO A QROPS? QROPS TAXATION AND TRANSFER CHARGES It is important to understand the taxation of retirement and death benefits in the QROPS jurisdiction and the country in which you reside. Your personal circumstances will determine whether or not a transfer from a UK registered pension scheme to a QROPS can be made free from charges in the UK. Your financial adviser can help you determine whether or not you could be affected by these charges. Overseas Transfer Tax Charge An overseas transfer tax charge of 25% applies to some QROPS. A transfer from a UK registered pension scheme to a QROPS will not incur the overseas transfer charge if the QROPS (which receives the transfer) meets one of the following conditions: It is established in the same country in which you live. It is established in any European Economic Area (EEA) state (if you live in an EEA state). It is a public sector scheme in which your employer participates. However, if the transfer does not incur the overseas transfer charge, but your circumstances change in the tax year in which the transfer was made, or in any of the following five tax years, then the charge may become due at the point your circumstances change. Lifetime allowance excess charge A transfer from a UK registered pension scheme to a QROPS causes the transfer value to be checked against your available lifetime allowance (see page 9 for definition). If the transfer value exceeds your available lifetime allowance a tax of 25% on the excess amount is deducted before the transfer is made. LOCAL REGULATIONS AND RISKS Not all jurisdictions are the same, so it is important to appreciate that local regulations and the levels of expertise and experience among QROPS providers may differ between countries. It is a pension scheme established by your employer. 14

15 WHAT RISKS MIGHT APPLY IF YOU TRANSFER TO A SIPP OR QROPS? CURRENCY EXCHANGE RATE RISK If you live, or plan to retire, in a country whose currency is different to that in which your investment is held, you may be affected by exchange rate fluctuations. INVESTMENT RISK INVESTOR PROTECTION If things go wrong, SIPP members may, in some situations, benefit from investor protection through the UK s Financial Services Compensation Scheme (FSCS). Please be aware that this protection would not cover poor investment decisions by the investor. However, for QROPS, the investor protection available is dependent on the jurisdiction in which the QROPS is based. A SIPP or QROPS can give you access to a wide variety of investments, the value of which may fall as well as rise. This means that the value of your pension or the amount of income you may receive in retirement cannot be guaranteed. You may get back less than you paid in. 15

16 WHO IS OLD MUTUAL INTERNATIONAL? WHO IS OLD MUTUAL INTERNATIONAL? It s vital for you to have confidence in the company to which you are entrusting your savings and pension investments. Part of that confidence comes from knowing it s a strong, established company. Old Mutual International is the collective name for the companies that provide offshore and cross-border investment solutions within Old Mutual Wealth Limited. Old Mutual Wealth is a leading wealth management business in the UK and internationally with billion in assets under management (as at 30 September 2017). Their offering includes platform-based investments and protection, asset management solutions and discretionary management, as well as financial advice services in the UK and Singapore. BENEFITS OF AN OLD MUTUAL INTERNATIONAL OFFSHORE BOND With an Old Mutual International offshore bond, there is the convenience of amalgamating a variety of existing or new investments into one product. Most of our offshore bonds have the flexibility to hold a wide range of different investments including cash, unit trusts, investment trusts, open ended investment companies, exchange traded funds and shares. Holding multiple assets in one wrapper can offer simplified, consolidated reporting, removing individual asset paperwork, dividend receipts and tax certificates. This could result in cost savings as well as reduced time and effort. The value of investments can fall as well as rise in value and you may not get back what you paid in. WINNER BEST INTERNATIONAL LIFE GROUP (UK) WINNER BEST INTERNATIONAL TRUST AND ESTATE PLANNING PRODUCT Please speak to your financial adviser to find out more about Old Mutual International s offshore bonds. 16

17 WHERE ARE WE LOCATED? OLD MUTUAL INTERNATIONAL ISLE OF MAN LIMITED has operated from the Isle of Man since 1984 and manages more than 130,000 policies in tax-efficient investment and savings products. It also provides access to Old Mutual International Trust Company. OLD MUTUAL WEALTH is a leading retail investment business, with billion funds under management*. OLD MUTUAL INTERNATIONAL IRELAND dac was formed in 2003 to provide cross-border solutions for European investors. It also provides access to Old Mutual International Trust Company. Company figures are as at: *30 September 2017

18 NEXT STEPS Firstly contact your financial adviser to discuss all your retirement options and for further information on SIPPs and QROPS. TAKE ADVICE FROM A QUALIFIED FINANCIAL ADVISER Your financial adviser should provide you with an assessment of your existing pension arrangements, helping you make a plan to meet your needs, objectives and priorities. IS A SIPP RIGHT FOR YOU? If you decide to transfer your UK pension to a SIPP, you should ensure that your chosen provider has a good relationship with HMRC, is reputable with a proven track record in providing these pension schemes, delivers a professional efficient service, and has sufficient staff and adequate resources. IS A QROPS RIGHT FOR YOU? If you decide to transfer your UK pension to a QROPS, you should choose the most appropriate jurisdiction for your needs, ensure that your QROPS provider has a good relationship with the local regulator and is reputable, with a proven track record in providing these pension schemes. The QROPS provider should also deliver a professional, efficient service and have sufficient staff and adequate resources. Finally, check the provider s fees to understand what is included and what might incur extra cost. 18

19 This document is based on Old Mutual International s interpretation of the UK law governing UK pensions as at March While we believe this interpretation is correct, we cannot guarantee it. Whilst every effort has been made to ensure the accuracy of this document, we do not give pension or legal advice and can accept no responsibility for any act or failure to act based upon its content. 19

20 Calls may be monitored and recorded for training purposes and to avoid misunderstandings. Old Mutual International Isle of Man Limited is registered in the Isle of Man under number 24916C. Registered and Head Office: King Edward Bay House, King Edward Road, Onchan, Isle of Man, IM99 1NU, British Isles. Phone: +44 (0) Fax: +44 (0) Licensed by the Isle of Man Financial Services Authority. Old Mutual International Isle of Man Limited is a member of the Association of International Life Offices. Old Mutual International is registered in the Isle of Man as a business name of Old Mutual International Isle of Man Limited. Old Mutual International is the registered business name of Old Mutual International Isle of Man Limited Singapore Branch. Old Mutual International Isle of Man Limited Singapore Branch, 50 Collyer Quay, OUE Bayfront, #05-07, Singapore, Phone: Fax: Registered in Singapore Number T08FC7158E. Authorised by the Monetary Authority of Singapore to conduct life assurance business in Singapore. Member of the Life Insurance Association of Singapore. Member of the Singapore Finance Dispute Resolution Scheme. Old Mutual International Ireland dac is regulated by the Central Bank of Ireland. Registered No Administration Centre for correspondence: King Edward Bay House, King Edward Road, Onchan, Isle of Man, IM99 1NU. Tel: +353(0) Fax: +353(0) Registered and Head Office address: Hambleden House, Lower Pembroke Street, Dublin 2, Ireland. VAT number for Old Mutual International Ireland dac is S. Old Mutual International is registered in Ireland as a business name of Old Mutual International Ireland dac. SK14661/INT /March 2018