UK Pension Transfers (QROPS)

If you have worked in the UK at some stage during your lifetime, you may have accrued a UK pension. If you have no intention of returning to the UK it may be advisable to transfer your UK pension to Ireland to ensure it is being actively managed in line with your overall financial plan.

Opes Financial Planning has many years of experience in advising clients on whether a transfer of a UK pension is advisable taking client's individual circumstances into consideration.

 

To transfer a UK pension to Ireland, you will need to transfer it to a Qualifying Recognised Overseas Pension Scheme (QROPS).

 

Qualifying Recognised Overseas Pension Schemes (QROPS)

QROPS is a pension transfer arrangement that allows transfers between U.K. and Irish pension schemes once they receiving scheme meets certain criteria. The HMRC let people transfer pension entitlements from the U.K. to Ireland without tax consequences in most circumstances once all the conditions have been met.

 

What are the benefits of transferring a QROPS transfer to Ireland?

• Consolidation – By having all your pensions in Ireland, you can then deal with one financial advisor who will be familiar with your financial plan.

 

• Investment Control / Choice- We can establish an Irish Pension scheme which may have much greater investment options than your UK pension has available.

 

• Currency Conversion Option - transferring your UK pension may make sense if you want to convert your pension into euro as this will be the currency you will be relying on in retirement. Please note that we can also facilitate a transfer to Ireland and keep the pension in sterling which can be a good diversifier in your overall wealth portfolio.

 

• Standard Fund Threshold – any pension savings transferred to Ireland are not counted towards the €2 million Irish Standard Fund Threshold. It should be noted that significant adjustments are scheduled to commence from 2026.Planned Increases to the SFT:
  • 2026 to 2029: The SFT will increase by €200,000 annually, reaching €2.8 million by 2029.
  • post-2029: From 2030 onwards, the SFT will adjust annually based on an applicable growth rate to reflect economic conditions.

 

• Estate Planning – if the beneficiaries of your will aren’t living in the UK, leaving your pension there may be more complicated to deal with in the event of death as there may be UK inheritance tax implications that will require UK legal advice.

 

 

Transferring a pension to Ireland may not suit every circumstance and not every UK scheme will permit it, so it is important to take advice. Our financial planners are ideally placed to provide you with the advice you need.

If you're weighing up which Irish structure to transfer into, read our guide on why a QROPS-approved PRSA is worth considering.

Moreover, if you worked in the UK, you may also be entitled to a UK state pension. Reviewing your national insurance record would also form part of any overall financial review.

 

Want to find out more?

Contact us for advice on whether a transfer is the right option for you or to set up a meeting with one of our advisors where we can look at your overall retirement plan to ensure that you have the correct structures in place to reach your desired retirement.

 

The Central Bank does not regulate Tax Advice, Qualified Recognised Overseas Pension Schemes or Estate Planning.

The value of investments and the income derived from them can fall as well as rise. You may not get back what you invest.