Qualified Recognised Overseas Pension Scheme
If you are a Canadian resident with British roots , over 55 and have a UK pension you may be able to transfer that pension to a Canadian RRSP through the QROPS process which restarted in 2019. Trailane Financial will guide you through the process and our pension specialists will help structure your retirement funds to give you the retirement you deserve.
Freedom from exchange rate changes
The exchange rate between the British Pound and Canadian Dollar varies wildly, in the last 5 years it has gone between the extremes of $1.57 and $1.93 to the Pound, this could have a huge impact on your pension income if your pension remains with a UK provider.
Potential for increased income.
There are many benefits for growing your pension pot in an RRSP rather than leaving it with a UK insurance provider. Returns have been sluggish for with-profits funds for some time, lagging well behind the markets, you will have the flexibility to invest in prudent equity investment funds allowing you the potential for higher returns, and with that a higher pension.
Protection from legislative changes
The UK government could, at any time change the rules on pensions, leaving you with a potentially reduced pension income, they could even stop pension transfers altogether.
Ease of estate planning
By transferring your UK pension to a Canadian RRSP, on death, the full value of your pension fund is rolled over to your surviving spouse tax free with the remainder available to your beneficiaries.
In the UK, depending on the company pension scheme, on death, they may only pay 50% of the original pension to your spouse. Once your spouse passes on there is nothing left to leave for your beneficiaries.
Most pension funds provide little choice on how funds are invested, by working with us, we can create a portfolio that suits your needs.
In the UK, most pension withdrawals start at age 55 onward, in Canada you have different options that will give you flexibility on the amount of income you receive in retirement.
Lock in the exchange rate
Lock in your exchange rate and have your pension income be paid out in Canadian dollars and avoid a fluctuating exchange rate.
Who is it for?
Anyone that has a UK pension plan
Exceptions apply, unfunded pensions such as NHS, civil service and military pensions can not be transferred, almost all other pensions, private and company, both defined contribution and defined benefit with a transfer value under £30000 can be transferred.
Age 55 or over
You have to be over 55 to utilize the QROPS process.
Defined benefit pensions greater than £30000
If your defined benefit plan has a valuation of over £30000 then it has to be assessed by a UK FCA approved financial advisor and they have to complete an analysis of your pension and provide you with a certificate of advice, which is required by the UK pension provider to release the funds. This FCA process can be expensive, prices have gone up to in excess of £3000 for this certificate.
We receive compensation from the Canadian QROPS provider who will hold your RRSP so there is no cost to you for this process unless the pension is, as stated above a Defied Benefit plan with a valuation over £30000.
We will guide you through the process either in person or through virtual meetings. There will be forms that must have a physical signature so these would be mailed or couriered to you.
On your behalf, we will send the “request for a Transfer Value Quotation” to your UK Pension Arrangement.
After the valuation has been received, we will arrange a meeting to discuss your options and complete the final transfer forms.
When the forms have been submitted you will receive regular updates if we are able to establish proper communication with your UK pension provider.