What Does The Rate Rise Mean For UK Expats

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The Bank of England has raised interest rates from 0.50% to 0.75%, the second increase in less than a year and its highest level in a decade.

A rate rise usually leads to a reduction in the Cash Equivalent Transfer Values (CETVs) of Defined Benefit pensions. As a result, many expats could see the size of their pot reduce significantly.

Download your FREE e-guide and find out how the interest rate rise may affect the value of your defined benefit pension pot, and:

  • Why transfer values have been so high
  • The benefits of staying in your existing DB scheme
  • What a final salary transfer entails
  • The difference between an annuity and draw-down
  • Who is eligible to transfer
  • The recent changes to expat pensions
  • The difference between SIPPs and QROPS
  • The costs if you did decide to transfer
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Don't get caught out again, act now to preserve the value of your pension pot

With experts predicting more rate rises in the future, it’s likely that you will hear us and other advisers nagging you with uncomfortable urgency to obtain a transfer calculation for your DB pension.

There are many reasons why you might consider transferring your DB pension, however this is not always the best course of action. Once you have that calculation secured, it will be guaranteed for 3 months and another sudden interest rate change can’t affect it, so you’ll have time to review your options properly before making a decision.

Our team of researchers have already compiled thousands of extensive reports on behalf of our clients. With the findings of these reports we are able to make recommendations on the best course of action to ensure you maximise your returns.

(Not So) Great News For Savers…

The rise means expats with savings in the UK should see the interest they earn increase too. However, an interest rate rise of 0.25% on a savings account means that for every £100 the saver has in that account, they will earn an extra 25p per year. With many regular savings accounts offering rates of less than 1%, we are still some way off the heady heights of 2007 when the average savings account rate was 4.05%.

With low rates the norm for savers these days, many expats are contemplating working longer or having to revise their retirement plans. This can often lead them to taking uncomfortable risks chasing higher returns.

Thankfully as an international worker you have access to a wide range of tax-efficient offshore investment vehicles.

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GWM's team of experts are on hand to show you how to use your expat status to safely grow your investments.

You can speak to an Adviser now by calling our Global Helpline on +41 22 710 7864

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The Importance of obtaining professional advice

Such an important decision should never be taken without receiving sound advice that considers all options and eventualities.

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