If you worked in the UK and left behind a pension plan when you took up residence in another country, the pension proceeds can usually be transferred to your new home. There are two major exceptions: The first is the old age or state pension and the second is any unfunded pension plan (often provided by the Public Sector e.g. National Health Service, Teachers, Civil Service, Police, Military). If you qualify, these pensions can be paid to you in Canada but cannot be transferred out of the UK as a lump sum.
Related Posts
You might need advice before you are allowed to transfer a UK Defined Benefit pension plan.
To protect you from fraud the UK’s tax authority – HMRC – will not allow trustees to transfer a DB pension with a value of £30,000 or more without the advice of a consultant regulated by the FCA.
If you are going to retire in Canada and you have a Defined Contribution Pension in the UK, life might be better if you transfer the funds to Canada.
If you leave your plan in the UK and it comes into payment, you will normally be paid in British pounds. You will have all the hassle and expense of converting every payment to dollars.
