Last Updated on 24th September 2025
Transferring a pension fund, or several schemes, as part of an international relocation can be complex. Much will, of course, depend on the value of your retirement wealth, the nature of the pensions you hold, and the tax regulations in the country you’re moving to.
Chase Buchanan’s experienced pension advisers and wealth management experts have collated all of the questions we most often receive about pension transfers and compiled the answers in this concise guide.
Should you require more personalised advice about handling a pension transfer, or have a query we’ve not covered here, you are very welcome to contact your nearest team to arrange a convenient time to talk.
The Basics of Transferring a UK Pension as a British Expat
What Are Pension Transfers and Do All UK Expats Need to Do This?
Transferring your pension means just that, removing the funds from the current scheme and shifting them into an alternative, usually based in your new country of residence.
Pension transfers are not mandatory and are not beneficial for everyone. However, for many expats, they represent the best way to maximise their retirement wealth, manage their tax obligations, and benefit from freedoms, such as withdrawing a more generous tax-free lump sum on retirement.
Why Should I Consider Transferring My Pension Scheme Abroad?
It is perfectly possible to leave your pension as-is within the UK, but this can pose complexities such as currency exchange rate fluctuations and difficulties accessing the fund from another country.
What Is a Recognised Overseas Pension Scheme (ROPS)?
A ROPS is a type of pension fund that HMRC has approved, and that can accept pension transfers from UK schemes. Note that the tax office updates its list of recognised ROPS regularly, and this can and does change.
How Does a ROPS Differ From Keeping My Pension in the UK?
Transferring your fund to a ROPS can provide tax benefits, especially if you’re moving to a country with lower pension taxation than in the UK. It also ensures that your pension income will be received in the same currency as that used in your place of residence.
What Is a SIPP, and Is it a Better Option Than a ROPS?
A self-invested personal pension (SIPP) has similar tax advantages to a ROPS transfer but can remain situated in the UK. This means that this alternative type of pension transfer doesn’t carry the potentially significant tax burden that some UK pension holders will need to pay if they choose to transfer their pension fund to another country.
UK Pension Transfer Taxes and Regulations
Will I Need to Pay Tax if I Opt to Transfer a UK Pension Overseas?
Sometimes, yes, although that depends on whether you are a resident in the country you’re transferring your pension to. The Overseas Transfer Charge is levied at 25% on international pension transfers, including those to ROPS schemes, but typically doesn’t apply if you are already a resident.
One issue is that there are several countries with no currently approved ROPS funds, which means you might not be able to avoid paying the OTC by simply waiting until you have relocated to transfer your pension.
Will My UK Pension Income Be Taxed in a New Country of Residence?
Yes, if you become a tax resident in another country, you’ll normally pay tax on pension income at the prevailing rates. In most cases, pensions are taxable wherever you are a tax resident, rather than being taxed at source, even if you decide to leave your pension in the UK.
Are There Tax Benefits Linked to Transferring a British Pension Abroad?
There can be, with many countries offering considerably lower and sometimes flat-rate taxation for pension benefits.
How Do Double Taxation Agreements Affect My Pension?
Double taxation agreements ensure you don’t pay tax twice on the same income or event. Therefore, if your pension was technically taxable in both the UK and overseas, you could apply the tax treaty to offset the second tax charge.
Risks and Factors to Consider When Deciding How to Manage a British Pension Transfer
What Are the Main Risks of Transferring a Pension Abroad?
Risks can relate to the costs of the transfer, including taxation and administration costs, changes to the performance of your pension fund depending on how it is invested, and losing any guarantees associated with your current pension products.
Could I Lose Access to Retirement Benefits if I Transfer My Pension?
Yes, if you transfer a pension with a guaranteed income, such as a final salary pension, you will usually find that those guarantees cease to apply.
Are Pension Savings Protected Under Overseas Schemes Like They Are in the UK?
In the UK, pensions are protected by the Financial Services Compensation Scheme (FSCS). There are comparable schemes in some countries, although not all, which is why it’s always worth checking which consumer safeguards exist depending on where you are relocating.
What Does a Pension Transfer Cost?
Costs vary considerably, based on elements like the value and type of pension you hold, and the complexity of the transfer.
In general, costs range from around 1% of the total pension value up to 5%, and we recommend seeking professional advice to ensure you understand all of the costs and ongoing management fees.
Are There Ongoing Fees Linked to a Pension Transfer to a ROPS or SIPP?
Yes, like almost all pension funds, you can expect to pay fees for the administration and management of your pension, although these can also vary by a significant margin. The average fees are 1% to 2% but this is indicative only.
How Can I Compare the Costs Between Different Pension Transfer Options?
We’d suggest speaking to an experienced, independent pension adviser with knowledge of the regulations, transfer rules and tax regimes applicable both in the UK and your planned country of residence.
Chase Buchanan Private Wealth Management advisers can assist with comparing all of the fees, from transfer taxes to annual management charges, to ensure you make an informed choice about the right options for you and your retirement wealth.
All investments carry risk, including the potential loss of capital. You should carefully consider whether investing is suitable for you, taking into account your personal circumstances, financial situation, and risk tolerance.
*Information correct as at September 2025
