In an increasingly globalised world, retirement planning has become more complex for British nationals living abroad. For financial advisers working with expat clients, the International SIPP (Self-Invested Personal Pension) offers a flexible, tax-efficient, and FCA-regulated solution that bridges the gap between UK pension rules and international lifestyles.
What Is an International SIPP?
An International SIPP is a UK-registered pension scheme tailored for non-UK residents. While it follows the same regulatory framework as a standard SIPP, it includes features designed specifically for expats, such as:
- Multi-currency investment and withdrawal options
- Remote access and administration
- NT tax code handling for UK tax exemption
- Portability across jurisdictions
Benefits for Financial Advisers
1. Global Client Reach
Advisers can support clients across borders, offering a UK-regulated pension solution that remains accessible worldwide.
2. Investment Flexibility
International SIPPs allow advisers to build bespoke multi-currency portfolios using a wide range of ETFs, Unit Trusts, OEICs and Investment Trusts.
3. Consolidation Opportunities
Advisers can help clients consolidate multiple UK pensions into one manageable pot, simplifying retirement planning and reporting.
4. Ongoing Advisory Role
SIPPs require active management, giving advisers a long-term role in guiding investment strategy and drawdown planning.
Benefits for Expat Clients
1. Currency Control
Hold and withdraw funds in multiple currencies, reducing foreign exchange costs and volatility.
2. Tax Efficiency
With proper planning and double taxation agreements, clients may benefit from reduced or zero UK tax on withdrawals.
3. Flexible Access
Clients can choose how and when to draw income, including flexi-access drawdown, without being forced into annuities.
4. Regulatory Protection
Funds remain under UK FCA oversight and may be covered by the Financial Services Compensation Scheme (FSCS).
5. Estate Planning Advantages
Pension funds can often be passed to beneficiaries of your choice (subject to future rule changes).
Why Now?
Post-Brexit and following changes to QROPS and the Lifetime Allowance, International SIPPs have emerged as the preferred solution for many expats. They offer the flexibility and control that traditional schemes no longer provide, making them a vital tool in cross-border retirement planning.
