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The funds can be transferred directly into a regular Canadian RRSP.
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You’ll have full control of your funds and won’t be forced to deal with your present pension provider half-way around the world.
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You won’t need to worry about your overseas pension company – is it healthy, merging, collapsing or disappearing altogether?
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Exchange rate fluctuations and transaction charges won’t erode your pension payouts when you retire (current charges on regular pension payments from Britain can be as high as £19.00 per payment).
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If you were to die, the full value of this regular Canadian RRSP could be rolled over into your spouses RRSP with no tax consequences. (Spousal Rollover). If left in a UK pension scheme usually a maximum 50% spousal pension is paid or in some cases all benefits cease.
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Pension funds transferred to
qualifying schemes exit the UK without a claw back
of tax incentives gained whilst saving in the United
Kingdom. This means you are not only transferring
your physical savings and tax free gains, but the
accumulated tax relief as well.
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You will have the option in Canada
at retirement of purchasing an annuity (the only
option you have in the UK) or leaving your funds to
grow tax deferred in your RRSP (which would convert
to a RRIF
at age 71) until you need to draw some out. |
