Pension Transfers: A Critical Decision for Expats 

For many internationally mobile individuals, pensions are among the most valuable assets in their wealth portfolio. If you’re living abroad or planning to move, you may be considering whether to transfer your UK pension - or consolidate pensions held in multiple jurisdictions - into a more flexible or internationally accessible arrangement. 

But pension transfers are not decisions to be taken lightly. The UK’s Financial Conduct Authority (FCA) regulates this area closely, recognising the long-term impact of moving retirement benefits. For expats, the added layers of currency, taxation, and cross-border rules make professional advice essential. 

At Hoxton Wealth, we specialise in helping expatriates evaluate whether a pension transfer is in their best interests, ensuring all decisions are informed, compliant, and aligned with long-term goals. 

Quick Comparison Table 

Important update on QROPS and the Overseas Transfer Charge (OTC)

From 30 October 2024, the rules for the Overseas Transfer Charge changed significantly: 

• Transfers to QROPS in the EEA or Gibraltar no longer benefit from the previous exemption. They are now subject to the 25% OTC unless you are resident in the same country as the QROPS, or another specific exemption applies. 

• Transitional protection applies if the transfer was requested before 30 October 2024 and completed by 30 April 2025. 

• The Overseas Transfer Allowance (OTA) now also applies to transfers above this allowance may trigger the 25% OTC on the excess. 

Exemptions to the OTC include (but are not limited to): 

1. You are resident in the same country as the QROPS receiving the transfer. 

1. The QROPS is an occupational scheme, and you are employed by the sponsoring employer. 

1. The QROPS is an overseas public service scheme, and you are employed by an eligible employer. 

1. The QROPS is established by an international organisation for its employees. 

Because these rules affect whether a 25% charge applies, obtaining professional advice is essential before transferring to QROPS. 

The Pension Transfer Process: Step by Step 

1. Initial Consultation – Assess objectives, retirement plans, and current pension benefits. 
2. Information Gathering – Request details from pension trustees, providers, and administrators. 
3. Transfer Value Analysis (TVA) – Review pension valuations, projections, and benefits. 
4. TVC Disclosure – If transferring from a Defined Benefit scheme, an FCA-mandated TVC report is provided, showing the cash value being given up. 
5. Suitability Report – A personalised recommendation assessing whether transfer is in your best interest. 
6. Implementation – If suitable, complete transfer paperwork and establish receiving scheme. 
7. Ongoing Review – Regular monitoring to ensure the pension strategy continues to meet needs. 

Key Risks and Considerations 

Transferring a pension - especially for expats - requires balancing opportunity and risk: 

• Loss of Guarantees – DB pensions offer security that cannot be replicated. 

• Investment Risk – Future pension value depends on market performance. 

• Fees and Charges – High costs in some overseas schemes can erode value. 

• Currency Risk – Pound sterling exposure may not align with your retirement currency. 

• Tax Implications – Cross-border taxation can lead to unexpected liabilities. 

• Access Restrictions – Some overseas schemes may restrict or delay withdrawals. 

• Regulatory Protections – Moving out of the UK system may reduce FCA oversight. 

FCA Rules and Required Disclosures 

The FCA requires strict safeguards around pension transfers: 

• Mandatory Advice: If your DB transfer value exceeds £30,000, FCA-authorised advice is required. 

• TVC Disclosure: A Transfer Value Comparator must be provided to show the relative value of safeguarded benefits being given up. 

• APTA Requirement: An Appropriate Pension Transfer Analysis must also be carried out as part of the assessment. 

• Suitability Requirement: Advisers must clearly demonstrate why a transfer is (or is not) suitable for you. 

• Consumer Duty: Advisers must act in your best interests, ensuring clarity, transparency, and fair value. 

⚠️ FCA Warning: Transferring out of a Defined Benefit pension scheme is unlikely to be in the best interests of most people. 

Suitability: When a Transfer May Not Be Appropriate 

Transferring a pension may not suit everyone. Situations where transfer is usually not suitable include: 

• If you rely on guaranteed income for retirement security 

• If you have limited investment knowledge or risk tolerance 

• If your long-term plans remain UK-based 

• If the costs of transferring outweigh potential benefits 

Transfers may be appropriate where: 

• You require multi-currency income for retirement abroad. 

• You seek greater control and flexibility over withdrawals. 

• You have multiple pensions and want to consolidate. 

• You have other guaranteed income sources (e.g., State Pension, annuities) 

Why Work with Hoxton Wealth 

• Cross-Border Specialists – Deep expertise in UK, EU, Middle East, Asia, and beyond. 

• FCA-Authorised – Fully compliant with UK pension transfer rules. 

• Personalised Advice – Focused on suitability, not product sales. 

• Tech-Enabled – Use our Wealth App to track pensions and investments globally. 

📞 Book a complimentary consultation today to explore your pension transfer options with a Hoxton Wealth specialist. 

⚠️ Disclaimer: This content is for informational purposes only and does not constitute financial advice. Pension transfers are complex and may not be suitable for everyone. Always seek regulated advice before making decisions.