Many expats’ retirement plans are being ruined by financial planners overcharging for UK pension transfers and ongoing management.
And often the fees being charged are hidden or not fully disclosed. Large chunks of savers’ pension pots are taken as commission without their knowledge.
As a consequence, by the time some savers have retired and are ready to start drawing down on their pension money, the assets have grown little or not at all.
There is concern at the apparent ease at which some overseas financial planning firms can take as much as 20% in commission from the pension’s value. Often clients are not given all the facts as firms solely focus on tax breaks. However, the high commissions being taken are, in some cases, eroding any tax benefit.
If you think you have been mis-sold an expensive pension solution by unscrupulous financial planners there are steps you can take.
What can people do to ensure their pension is being appropriately managed?
Firstly, if you already have (or are considering) an overseas pension transfer you should check what financial regulation your firm has. Many countries such as Australia, the USA and Hong Kong have similar regulators to the UK’s FCA (Financial Conduct Authority) and some companies use these local solutions. If a firm is regulated it ensures it has qualified people who adhere to the rules and principle of treating customers fairly.
Secondly, find out what fees you are paying with a pension review. These are usually free and without obligation. A review will also disclose how your pension is performing and what the likely outcome is when you retire.
If a review shows a large proportion of your pension assets have or are being taken in high charges you can easily transfer to a lower cost plan.
Get a free pension review
If you would like a free UK pension review please contact Brite who offer a regulated service, low fees and full performance transparency so you can keep control of your retirement goals.