Advantages of Transferring Pension
There are definitely a number of reasons why it is advantageous to transfer your pension from the UK to Canada. We highly advise you to speak with one of our advisors to fully understand your needs and financial goals to see if it is beneficial for you to take advantage of this opportunity.
Please keep in mind that you currently have to be age 55 or older to qualify to transfer your pension from the UK to Canada.
Currency Risk / Exchange / Fluctuations
Your pension will be held in Canadian dollars if you transfer it to Canada. This eliminates the risk of currency fluctuations of the pound sterling and provides you with more control on your retirement income. Withdrawals in retirement will be in Canadian funds.
Tax Free Spousal Roll Over
Upon death, your UK pension in Canada will roll over to your spouse TAX FREE. This is because your pension will be a RRSP account in Canada which the CRA allows to be transferred to a spouse tax free at death. If left in the UK, you could be subject to tax at death and/or lose a large portion of your pension.
No Tax Liability to the UK
You will not be subject to any taxation in the UK when withdrawing your pension funds in Canada. You will only be subject to tax in Canada which is dependent on your total income in the tax year that you withdraw from your pension (RRSP).
Choosing Your Beneficiary
You have the ability to name a beneficiary on your pension to ensure that the balance of your pension goes to person(s) of your wish at death. Your beneficiaries will receive the full remaining amount of your investment because your investment has the ability to bypass probate and estate fees.
Retirement Income Options
You have full control of your retirement income options when it is in Canada. Choose between regular scheduled withdrawals or lump sums. You have the ability to decide how and when to take income from your retirement account. This provides the potential for a higher income in retirement.
Guarantee Your Principle
Currently Industrial Alliance is an eligible investment provider accepting UK pensions in Canada. They offer a product which can guarantee up to 100% of the initial transfer value of your pension when it arrives in Canada. This adds another layer of protection on top of your hard-earned money.
Lifetime Allowance (LTA) Limits
Transferring your pension from the UK helps solve the tax issue on excess Lifetime Allowance LTA) Limits. Currently, the LTA Limit is at £1,073,100 and frozen until 2026 (according to 2021 UK Budget). Consult with us for more information regarding LTA Limit.
At death, your estate will be much easier to handle for your heirs if your investments are not scattered across multiple countries in different currencies and investment accounts.
Did You Know?
Strata Wealth does not charge an out-of-pocket fee to complete a pension transfer from the UK to Canada. We are compensated by the investment company who you choose to invest your funds with once the money has arrived in Canada.
Why Choose Us?
Our clients mean everything to us and we’ve worked hard over the years to build a team focused business that is tailored to their needs.
We are excited to say that one of our advisors, Simon Huften specializes in working with expats who want to transfer their pension assets from the UK to Canada. Simon brings many years of experience in the financial industry and is supported by the entire Strata Wealth team. He manages existing QROPS RRSP/RRIF accounts in Canada as well as assists new clients with transferring their pension assets to Canada.
Whether it be assisting with your UK pension transfer, financial planning, mortgage or taxes, The Strata Wealth Team has specialists in all areas in the wealth sector.
- Over 10 years experience
- $100+ million in managed assets
- Personalized service either in person or virtually
- No out of pocket fee charged by us for pension transfers
- No load options for investments to ensure no penalties or fees for withrawing money
- Variety of retirement income and saving options
- Complete transparency in all aspects