Five tips to consider when using an overseas pension
28 Apr 17
Given the recent dramatic changes to rules governing overseas pension transfers, Martin Hall, the director of Isle of Man-based pension provider Optimus, gives his tips on what to consider when using an international pension scheme.
As is clear from its title – an overseas pension will fall outside of your country’s local regulation. It is therefore important that the regulation and financial stability of the pension’s jurisdiction is robust, stable and will ultimately support your client’s retirement.
In some jurisdictions the pension regulations are covered under the umbrella of their main financial services regulation and overseas pensions are usually covered under the relevant local Income Tax Act. That said, there are some jurisdictions that offer more protection with the addition of a specific retirement benefit act which creates an extra layer of robustness and comfort for both adviser and client.
A good resource to ensure your client’s pension is in the right jurisdiction is www.OECD.org
