For years Expats who were residing in Canada were allowed to transfer their UK pensions to Canada into a QROPS (Qualified Recognized Pension Scheme) within certain limits. In February of 2017, HMRC stopped allowing the transfer of pensions from the UK to Canada.
Unexpectedly on September 15 2019, HMRC started allowing the transfer of UK pensions to Canada into a QROPS. They have added an age requirement which states that you must be age 55 or older to be able to transfer a UK pension to Canada. If you are age 55 or older we recommend that you reach out to us for a personalized one on one consultation.
If you are eligible and decide to transfer your pension to Canada, there are currently two investment providers that can accept pension transfers.
- Mutual Funds – iA Clarington
- Segregated Funds – Industrial Alliance
iA Clarington and Industrial Alliance are both owned by the same company. You have the option of investing in mutual funds or segregated funds. Your investment selection should be discussed with Simon as every individual has different tolerances for investment risk, time horizon for accessing funds, etc.
QROPS – stands for Qualified Recognized Overseas Pension Scheme.
Benefits of transferring your pension
There are many different reasons why to consider transferring your UK pension to Canada. Some of the benefits are,
- Tax free spousal roll over
- No tax liability to the United Kingdom
- Currency risk / fluctuations / exchange
- Choose your own beneficiary
- Retirement income options
- Ability to guarantee your principle
- Accessibility / control of your investment
- Investment options