Move your pension
without
losing out
"The stakes with pension transfers are high — the right advice at the right time makes all the difference."
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If you have a pension and are considering transferring your benefits, the options available to you as an expat living in Sweden are more varied — and more complex — than most people realise. Getting this wrong can be expensive and irreversible.
There are two main types of pension arrangement you may be dealing with: Defined Benefit (final salary) schemes and Defined Contribution (money purchase) schemes. Each comes with different transfer rules, risks, and opportunities.
Understanding your
pension scheme
Final Salary Schemes
Often described as 'gold-plated' because they offer guaranteed benefits at retirement — a pension based on your final salary and years of service. However, they have faced many challenges as employers struggle to fund them adequately.
You can carry out an overseas pension transfer into a QROPS or transfer utilising a UK SIPP.
- Guaranteed income based on final salary
- Employer bears the investment risk
- Transfer values can be significant — specialist advice essential
Money Purchase Schemes
The pension at retirement relies upon three factors — the level of contributions paid, the investment return earned, and the rate at which the fund is converted into income (the annuity rate).
Many expats retiring abroad find a mixture of both arrangement types. Two main transfer options exist:
- Self-Invested Pension Plan (SIPP)
- Qualifying Recognised Overseas Pension Scheme (QROPS)
Cutting through
the jargon
Self-Invested Personal Pension
A SIPP is simply a personal pension — but with wider investment powers. It's an option for those living abroad, as well as those based in the UK, to proceed with a pension transfer.
If you transfer your benefits to a SIPP, those benefits will still be subject to UK pension regulations.
Qualifying Recognised Overseas Pension Scheme
A QROPS is an international pension plan — often the preferred vehicle for international pension transfers. If you transfer to a QROPS, the benefits broadly cease to be governed by UK pension regulations, although certain reporting requirements remain.
In addition to SIPP and QROPS, there is also the option of a Qualified Non-UK Pension Scheme (QNUPS).
Qualified Non-UK Pension Scheme
A QNUPS is not a specific scheme or product — it is a term given to schemes that comply with the International Organisations Act 1968. It offers a degree of flexibility and is free from UK inheritance tax.
Anyone is eligible to invest in a QNUPS, provided their country of residence allows it. These schemes can hold assets across property, investments, fine wines, and art.
Curious about your
pension and how to transfer it?
Book a free call. Jiten will assess your specific situation and walk you through the options that actually apply to you — honestly and without obligation.
Book A Free Call