# Article 50 countdown drives rush to transfer UK pensions overseas
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-01-05
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Brexit Influencing Rush to Transfer UK Pensions Overseas
Meta Description: The triggering of Article 50 has fuelled a 21% increase in enquiries for transferring UK pensions to overseas schemes. Find out why now might be the ideal time
URL: https://financedigest.com/article-50-countdown-drives-rush-to-transfer-uk-pensions-overseashtml

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The imminent triggering of Article 50 – the official start of the UK’s divorce proceedings from the EU – is helping to drive the current rush to transfer UK final salary pensions into overseas schemes.

deVere Group, one of the world’s largest independent financial advisory organisations, affirms enquiries have increased by 21 per cent since the beginning of December and pinpoints Brexit as the main influencer of this trend.

Nigel Green, founder and CEO of deVere Group, comments: “Since the Brexit vote last June, there has been a groundswell of interest in overseas pension transfers. This has intensified in recent [weeks as we begin the final countdown to the triggering of Article 50 by the end](https://www.financedigest.com/spain-expects-to-agree-with-banks-mortgage-relief-measures-by-end-of-week.html "Spain expects to agree with banks mortgage relief measures by end of week") of March, when Britain will start negotiations with the EU over its exit.

“I expect the momentum to develop further, the closer we get to ‘trigger day’.”

He explains:  “It’s understandable why so many are considering transferring their UK pensions into an HMRC-recognised overseas [pension scheme](https://www.financedigest.com/how-britains-pension-scheme-hedge-became-a-trillion-pound-gamble.html "How Britain’s pension scheme hedge became a trillion pound gamble") at the moment.  They recognise the golden opportunity right now.

“There [are three key factors](https://www.financedigest.com/automotive-air-vent-assembly-market-size-key-players-growth-factors-regions-and-applications-industry-forecast-by-2027.html "Automotive Air Vent Assembly Market Size, Key Players, Growth Factors, Regions and Applications, Industry Forecast by 2027") at play here.

“First, since the Brexit vote, gilt yields have reduced considerably and this has driven up transfer values. Indeed, they have reached record highs.  It is perhaps unlikely that the transfer values will [remain](https://www.financedigest.com/phenolic-resins-market-is-expected-to-remain-steady-and-grow-with-a-cagr-value-of-4-in-the-forecast-period.html "Phenolic Resins Market is expected to remain steady and grow with a CAGR value of ~4% in the forecast period") at this level post-Brexit and people seeking to transfer are looking to take advantage of these possibly once-in-a-lifetime values.

“Second, final salary pension deficits continue to come under pressure, and they are being exacerbated by the Brexit-induced [falling of gilt yields](https://www.financedigest.com/euro-zone-yields-fall-as-us-payrolls-seen-easing-rate-hike-pressure.html "Euro zone yields fall as US payrolls seen easing rate-hike pressure").

“It has been reported that Britain’s [pension funding](https://www.financedigest.com/cash-crunch-for-british-funds-puts-regulators-under-pensions-lens.html "Cash crunch for British funds puts regulators under pensions lens") 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](https://www.financedigest.com/multigrain-bread-mix-market-size-share-top-leading-companies-consumption-drivers-trends-forces-analysis-revenue-challenges-and-global-forecast-2029.html "Multigrain Bread Mix Market: Size, Share, Top Leading Companies, Consumption, Drivers, Trends, Forces Analysis, Revenue, Challenges And Global Forecast 2029") pension schemes. Certainly, many will need to make significant changes to the terms of employees’ [pension schemes](https://www.financedigest.com/how-can-pension-schemes-align-with-esg-goals.html "How can pension schemes align with ESG goals?").

“And third, no-one knows for sure what a [post-Brexit Britain](https://www.financedigest.com/britain-delays-full-post-brexit-import-checks-until-late-2023-2.html "Britain delays full post-Brexit import checks until late 2023") will look like and how the economy will fare.  If there is an [economic downturn](https://www.financedigest.com/logitech-q4-sales-plunge-22-as-economic-downturn-worries-weigh.html "Logitech Q4 sales plunge 22% as economic downturn worries weigh"), for example, it would become increasingly difficult to fund pension schemes. Plus, the value of the assets that the [schemes invest](https://www.financedigest.com/unregulated-investment-schemes-remain-a-threat-to-investors.html "Unregulated Investment Schemes Remain a Threat to Investors") 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](https://www.financedigest.com/financial-independence-through-passive-income-leads-to-a-happier-retirement.html "Financial Independence Through Passive Income Leads to a Happier Retirement") income.”

QROPS also offer a [host of other associated benefits](https://www.financedigest.com/france-to-host-pro-nuclear-meet-to-push-for-eu-recognition-of-climate-benefits.html "France to host pro-nuclear meet to push for EU recognition of climate benefits").  For instance, funds can be fully passed on to heirs after death, there is greater investment flexibility, and the pension can be paid out in most currencies. Thede Vere CEO concludes: “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.”


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