Transfer Pension to India from the UK

Transfer Pension Fund to India from the UK

Transfer Pension to India from the UK

You can transfer your UK pension to India or even transfer a pension to India from Ireland. We can also transfer a pension from Scotland to India, Wales to India or Norther Ireland to India. With many Indians who have worked in the UK as business owners, private employees or government staff such as Indians in the NHS and Indians who have worked for British Transport, the idea of transferring a pension to India in retirement can make a lot of sense. However, there are other options which can give you a higher pension income in retirement rather than transferring your pension to India today. you can move your UK pension to another country offshore and then move your pension to India at a later date, once you have built up a larger pension pot.

The first thing you need to ask yourself is WHEN am I going to retire? Is it next year or in twenty years? For those who want to retire tomorrow, moving a UK pension to India is a good idea as you may want to get your entire pension pot into Indian Rupees. This will give your pension more stability and there are plenty of options of Indian annuity companies who can give you a pension income in retirement in Indian rupees.

However, if you are not reaching retirement age for another twenty or thirty years or even five years, you may want to explore the alternatives. A popular choice amongst young Britons considering retirement in India is to transfer their pension into US Dollars first into an offshore tax efficient jurisdiction such as Gibraltar?

Why? The US Dollar is still the most widely used currency in the world and is very strong at the moment, having climbed 12% against a basket of other currencies. In fact, twice as many people use the USD than the EUR, the next most widely used currency. Furthermore, the US Dollar allows a much wider range of investments than in the Indian markets. You can still invest in India through the US Dollar, but the money is allowed more time to grow rather than buying an annuity in India. This is also a smart choice if you are not sure where you want to retire.

A QROPS helps you to avoid the UK tax net once you have transferred your pension out of the UK and into India or into another offshore jurisdiction.

UK Pension Transfer to India Video

Transferring a UK Pension to Gibraltar for a British Citizen Resident in India

This is often a better options for those who want to move to India, but are under 50 years old and want to make the most of their pension in retirement and want to aim to achieve maximum growth.

Popular pension companies for QROPS in Gibraltar for Indian Residents are:

Sovereign Trustees
Brooklands Pensions
Momentum Trustees

Please ask us for the cheapest QROPS options possible for those wishing to retire in India, but wanting maximum returns from their pension plans.

For those who want a pension plan in India, please see the below QROPS in India list.

Full HMRC India QROPS List for 2015

Exide Life Golden Years Retirement Plan India
Exide Life New Best Years India
HDFC Life Guaranteed Pension Plan India
HDFC Life New Immediate Annuity Plan India
HDFC Life Pension Super Plus India
HDFC Life Personal Pension Plus India
HDFC Life Single Premium Pension Super India
ICICI Pru Immediate Annuity India
Max Life Forever Young Pension Plan India
Max Life Guaranteed Life Time Income Plan India
National Pension System (NPS) India
SBI Life – Annuity Plus India

Performance of Best Pension Plans in India in 2015.

Transferring a defined benefit pension scheme to a QROPS in India

You can transfer a defined benefit pension scheme to India via a QROPS (Qualifying Recognized Overseas Pension Scheme (QROPS). A QROPS will allow you the freedom to choose the retirement pension plan in India that you like.

There are several large pension schemes in India such as SBI India, NPS India (National Pension System) launched by the Government of India,Life Insurance Corporation of India, and HDFC life in India.

Please email us for pension transfer advice for non-Indian residents.

Transferring a Personal Pension Scheme to a QROPS in India

You can transfer a personal pension scheme to India via a QROPS as well. Once you have transferred into a QROPS in India, often it is difficult to transfer out. Often, it may be best to transfer to a QROPS in Gibraltar first or even transfer to a UK Self Invested Personal Pension (SIPP).

Transferring from a personal pension or SIPP into a QROPS in India is an easy process, but it does take time.

Pension Transfer Process in India

The pension transfer process from the UK to India can take 3 – 6 months. Often it is dependent on your local UK pension scheme as many employ delaying tactics and UK pension companies by law don’t have to reply before 3 months although to be fair, most reply within a month. The best way to go about it if you seriously want to do a transfer is to send your UK pension company a letter of authority immediately followed by phoning them to ask for the transfer out papers. This often speeds up the process.

We can put you in touch with QROPS specialists that can speed up the process.

Transfer an NHS Pension to India

transfer-nhs-pension-to-india
NHS pensions can also be transferred to India or transferred to Gibraltar if you wish to retire offshore. NHS pension transfers to India will be closed from April 6th, 2015, so this may be the last week to initiate a pension fund transfer otherwise, you will not be able to transfer out. NHS pension transfers are locked down from April 6th, 2015.

Benefits of a Pension in India vs a UK SIPP

Pension benefits of a QROPS Pension Plan in India vs a UK Retirement Scheme (SIPP)

                                 SIPP (UK Pension Scheme)     QROPS (Indian Pension Scheme)

Cash Lump Sum at 55         25% Tax Free Lump sum    30% Tax Free Lump sum

Pension in retirement                Drawdown                       Immediate annuity

Death benefits before 75               0%   Tax                      0% Tax
Death benefits after 75                  up to 45% Tax             0% Tax
Pay Out After Death   Spouse gets a reduced income    100% of pension pot passes on

QROPS Gibraltar Vs. QROPS India

A QROPS in Gibraltar is different to a QROPS in India as there is NO NEED TO PURCHASE AN ANNUITY. With interest rates so low, it is often better to purchase stocks and bonds rather than purchase an annuity. The annuity rates in India are only slightly above the Indian inflation rate whilst some Indian funds have risen by over 100% in a year.

A QROPS in India purchases an ANNUITY and is set in Indian Rupees
A QROPS in Gibraltar can invest in almost anything and is set in any currency you choose.