Over the years, Ireland and the UK have a strong history of people moving between our two countries for work and also for retirement. If you have a pension from your time in the UK, our expert Financial Advisors here at Gallagher would be happy to discuss your options regarding moving your pension to Ireland.
There are a number of advantages for Transferring your UK Pension to Ireland:
Uncertainty Surrounding Brexit
Brexit has dominated the headlines since 2016 when the UK voted to leave the EU. Since then, there has been plenty negotiations between London and the UK however little has been agreed upon. There has been little or no guidance issued as to how someone accessing pension benefits in the UK might be affected by the UK’s departure from the EU.
Another factor to consider for someone now based in Ireland in the currency risk attaching to pensions in the UK. The Sterling to Euro rate fluctuates daily and it is almost impossible to predict what will happen in the figure. If you’re living in Ireland, moving the funds here and so converting them to euro will make it much easier to plan your retirement or to budget your income.
Convenience – Advice and Administration
Pensions are complicated and over the course of your lifetime it’s likely you will require financial advice in relation to your retirement fund – both before and after your retirement. If you’re living in Ireland, knowing that your financial advisor is an expert in Irish pensions makes a strong case for moving your British pension over. Not to mention the added ease of administration of the retirement pot.
A UK Transfer Doesn’t Affect Your Revenue Limits
In Ireland, Revenue have imposed a pension fund limit of €2,000,000 per individual, called the Standard Fund Threshold. If your total pension pot exceeds this then you are liable for tax at the higher rate, at the time of accessing benefits.
If this is something that you’re concerned about, moving your UK pension to Ireland will not affect your Standard Fund Threshold. Revenue have stated that only pensions funded by Irish earnings are taken into account for this threshold.
Sorting out estates can be complicated and a hassle at the best of times. Trying to move a deceased’s persons pension from the UK is almost guaranteed to cause additional stress to those left behind.
When considering what inheritance you will leave when you pass away, it’s worthwhile to bear in mind where the beneficiaries are residing. If you have a UK pension that you want to leave to your children, who live in Ireland, on your death matters will be much more straightforward for them if the pension is here.