Article 50 countdown sparks surge in overseas pension transfers

deVere says it has seen interest intensify in recent weeks and expects momentum to develop further "the closer we get to ‘trigger day’”.

Nigel Green, founder and CEO of deVere Group, commented: “It’s understandable why so many are considering transferring their UK pensions into an HMRC-recognised overseas pension scheme at the moment. They recognise the golden opportunity right now.
 
Green says there are three factors at play: the economic uncertainty post-Brexit, the reduction of gilt yields which have driven up transfer values, and final salary pension deficits continuing to come under pressure.

He continued: “It has been reported that Britain's pension funding gap almost doubled during 2016 and it could soon reach a trillion.
 
“The size of the gap brings into question the survival of many company pension schemes. Certainly, many will need to make significant changes to the terms of employees’ pension schemes.
 
“No-one knows for sure what a post-Brexit Britain will look like and how the economy will fare. If there is an economic downturn, for example, it would become increasingly difficult to fund pension schemes. Plus, the value of the assets that the schemes invest in would likely depreciate.
 
“All in all, so-called ‘gold-plated’ final salary schemes are, in many cases, looking considerably less golden than they once did. As such, people are, quite sensibly, looking to safeguard and take control of their hard earned retirement income.
 
“Of course, an overseas pension transfer is not suitable for everyone. However, for those who do qualify, with the countdown on to the triggering of Article 50, now might just be the ideal time to do so.”