If you’ve moved abroad but still hold a UK pension, you’re not alone. Many British expats find themselves stuck between UK pension rules, local tax laws, and Brexit-related restrictions. This guide explains why UK providers often can’t deal directly with overseas clients, what your realistic options are, and how to find safe, compliant, and cost-effective advice wherever you live.

---

The Situation

Problem: You live outside the UK, but your pension is still in the UK.

So why is your UK pension provider refusing to deal with you directly?

---

Why Won’t My UK Pension Company Deal with Me?

It mostly comes down to regulation, compliance, and Brexit.

When you start taking benefits from your pension, you’re usually doing one of two things:

• Buying an annuity, or

• Going into drawdown (taking an income directly from your pension).

Both are what’s called a benefit crystallisation event — meaning you’re moving from a personal (accumulation) pension to a drawdown (retirement) pension.

That’s a regulated event, which UK providers believe should only happen under advice that complies with UK FCA rules.

If you’re living abroad, they can’t easily confirm that you’re taking advice under an appropriate regulatory regime — so many simply refuse to proceed.

Result: you’re told they can’t help you while you’re overseas.

So what can you do?

---

I Don’t Need to Access It — I Just Want to Look After It

Good news: you don’t have to move your pension just because you’ve moved abroad.

If you’re only away for a few years, it may make sense to leave it where it is.

You can usually still review and adjust your investments online.

However, if you expect to be abroad long-term, or you want more flexibility, you may want to explore an alternative strategy — such as moving your pension to an international SIPP.

---

Do You Actually Need to Access It?

If you’re over 55 and need to draw income or take your tax-free cash, your UK provider may tell you to seek advice elsewhere.

This is where you’ll need an advisor with both UK and local regulatory permissions — ideally, someone who can advise you under the UK FCA and also in your country of residence.

Also remember:

• Tax treatment varies by country. “Tax-free cash” in the UK may not be tax-free in Europe.

• You may not have the same personal allowance abroad.

• Each country has its own rules on pension income.

So, it’s essential to combine regulated financial advice with local tax advice.

---

Who Can Provide This Advice?

Look for an advisor who:

• Is UK-regulated, and

• Also has permissions in your country of tax residence.

Many UK advisors will tell you they can’t advise non-UK residents — because they’d breach regulatory rules.

That said, if you can find a firm (like ours) that is UK-regulated but also works cross-border, you’ll get continuity of advice and regulatory protection.

If you go fully “offshore”, do extra due diligence — unfortunately, not every offshore adviser operates to UK standards.

---

How Do You Know If the Advice Is Good?

It’s all about fair, transparent outcomes.

You should expect:

• Simple, transparent costs

• No hidden commissions

• Clear reasoning for the recommendation

A good example of a sound outcome might be:

“An International SIPP with Novia Global, invested in low-cost index funds such as Vanguard.”

Expect:

• Ongoing advice fees: around 0.5–1% per year

• Initial advice fees: vary based on complexity and provider

• Optional extras: cash-flow modelling, tax coordination, or multi-currency reporting

---

What Does Bad Advice Look Like?

Do your research. Always.

Ask:

• What are you being charged — flat fee or commission?

• How many companies are involved?

• Who actually gets paid?

Red flags include:

• Complex QROPS structures linked to offshore bonds (e.g. RL360, Utmost).

• High upfront commissions disguised as “no fees”.

• Lock-in periods of 5–6 years with exit penalties.

• Limited investment choice or poor transparency.

If your pension is transferred into a bond that pays advisers 8–10% commission, that cost is coming from your money — often without you realising it.

Bonds can be suitable in some cases, but you should always understand the charges, the exit terms, and how your adviser is being paid.

Rule of thumb: “No upfront fee” usually means hidden commission somewhere else.

---

The Bottom Line

If you’ve moved abroad and still have a UK pension:

• Don’t panic. You don’t have to move it right away.

• Do your homework. Regulation and tax rules differ everywhere.

• Get advice from a firm that understands both the UK and your country of residence.

At Arthur Browns Wealth Management, we specialise in cross-border pension advice for UK expats — helping you make informed, compliant, and tax-efficient decisions.

Contact us Here

 

1. UK Government – Pension and Retirement Planning

   • URL: https://www.gov.uk/pension-types

2. HMRC – Tax on Overseas Pensions

   • URL: https://www.gov.uk/tax-uk-income-live-abroad/pensions

3. FCA – Checking Adviser Authorisation

   • URL: https://register.fca.org.uk

4. MoneyHelper – Pension Advice for Expats

   • URL: https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-basics/living-abroad-and-your-pension

5. OECD – International Pension Portability Report 

   • URL: https://www.oecd.org/finance/private-pensions/portability.htm

Contact us