This guide is designed with the latest changes to the UK pensions landscape in mind and aims to highlight the options for those holding a pension pot who are no longer a UK resident for tax purposes.
The new UK pension freedoms, which took effect on 6 April, mean that anyone over 55 with a defined contribution pension no longer has to purchase an annuity in order to obtain an income during retirement and can choose from a wider range of options.
“This is a major change to people’s financial futures and a decision on how to make best long-term use of a pension pot is not something to be taken lightly,” said Alan Morgan-Moodie, AILO’s Chief Executive.
“As well as the options that are being publicised widely, a cross-border investment, or a QROPS, might be appropriate for a proportion of the pension pot in some cases,” he said.
The AILO guide, available for download at www.ailo.org, explains these options in more detail and reminds savers not to overlook the basics of retirement planning, such as how to maintain an income for life, how to manage changing health needs, how to spread the investment risk and how to protect the valuable pension pot from being unnecessarily taxed.
