UK Pension Transfer To International SIPP | Lowest Cost
If you're a UK expat thinking about transferring your pension abroad, the cost of doing so can make an enormous difference to your retirement pot, far more than most people realise.
The good news is that understanding how fees work, and choosing the right adviser, can save you tens of thousands of pounds over the course of your retirement.
What Is a UK Pension Transfer Abroad?
A UK pension transfer abroad typically involves moving your existing pension - whether that's a defined contribution scheme, a personal pension, or a workplace pension - into an internationally recognised structure that is designed for people living outside the UK.
The most common route for expats is an International SIPP (Self-Invested Personal Pension). This is a pension wrapper regulated and recognised under UK rules, but structured to accommodate cross-border living, foreign residency, and global investment options.
For some expats, particularly those permanently leaving the UK, a QROPS (Qualifying Recognised Overseas Pension Scheme) may also be worth exploring. However, for most people, an International SIPP offers simplicity, flexibility, and lower ongoing tax risk.
The Real Cost of a UK Pension Transfer - What Most People Don't See
Here's where many expats come unstuck. The process of transferring a pension sounds straightforward enough. But the fees involved, if you're not careful, can quietly erode a significant portion of your lifetime savings.
Percentage-Based Transfer Fees: A Hidden Cost
The majority of advisory firms charge a transfer fee based on a percentage of the pension value. This typically ranges from 1% to 5% of the total fund.
On the surface, that might not sound alarming. But when you do the maths, the numbers become striking:
A £300,000 pension transfer at 2% = £6,000 upfront
A £500,000 pension transfer at 3% = £15,000 upfront
A £1,000,000 pension transfer at 2% = £20,000 upfront
That's money removed from your pension at the very point you're trying to put it to work. And because it reduces your invested capital from day one, the long-term impact - through lost compounding - is substantially greater than the headline number suggests.
Annual Management Fees and DFM Charges
Beyond the initial transfer fee, you also need to scrutinise the annual management fee (AMF) and any Discretionary Fund Manager (DFM) charges. These are the ongoing costs that are deducted each year - usually as a percentage of your fund - in exchange for managing your investments.
Many providers bundle DFM charges into the AMF, or apply them separately. Combined totals of 1.5% to 2.5% per year are common across the industry.
Over a 20-year retirement, even a 0.5% difference in annual charges can translate to hundreds of thousands of pounds in lost growth on a sizeable fund. This is not a minor administrative detail - it is one of the most important financial decisions you will make.
How The Wealth Genesis Is Different
The Wealth Genesis is an independent, whole-of-market financial planning firm specialising in UK expats and internationally mobile individuals. We exist to provide straightforward, transparent, and cost-effective financial planning for people who have left the UK - without the conflicts of interest that come from tied or commission-based advice.
Our Flat Fee of £3,000 for All Pension Transfers
Unlike most advisory firms, we charge a single flat fee of £3,000 for all UK pension transfers, regardless of the value of the pension.
Whether your pension is worth £100,000 or £2,000,000, our transfer advice fee does not change. This is a significant structural difference that consistently saves our clients thousands of pounds compared to the percentage-based model.
There are no hidden charges, no tiered pricing based on fund size, and no ambiguity. You know exactly what you're paying from the outset.
You can view our full, transparent fee structure on our fees page.
Industry-Leading Annual Management Fees
Our annual management fee starts at 0.85%, which is among the most competitive rates available for fully advised international pension management. For clients with pension values exceeding £1,000,000, our fees reduce further -rewarding those with larger portfolios and ensuring that the cost of ongoing advice remains proportionate.
Combined with access to institutional-grade investment solutions, this means more of your money stays invested and working for you, year after year.
Whole-of-Market, Independent Advice
Because we are independent and whole-of-market, we are not tied to any single pension provider or investment platform. We assess the full range of options available and recommend the most suitable solution for each client's individual circumstances.
We work with leading international pension providers including:
Novia Global — a leading UK-regulated international SIPP platform trusted by thousands of expat clients
Alltrust — a specialist and international pension administrator
Morningstar — a globally recognised investment research and portfolio management firm
This means you benefit from our independent relationships and negotiated terms, rather than being directed towards a provider because of commercial incentives.
You can learn more about our team and approach on our about us page.
Who Should Consider an International SIPP Transfer?
An international SIPP transfer is worth exploring if you are:
A UK expat who is no longer resident in the UK
Planning to remain abroad for the medium to long term
Holding a UK defined contribution pension, personal pension, or workplace scheme
Concerned about currency risk, UK tax exposure, or the accessibility of your pension from overseas
Looking for greater investment flexibility and international fund access
It is generally not suitable if you hold a defined benefit (final salary) pension valued above £30,000, as independent advice is a legal requirement and the decision requires careful consideration of guaranteed benefits.
For more detail on how an International SIPP works and whether it's right for your situation, visit our International SIPP page.
Common Mistakes to Avoid
Focusing only on the transfer fee and ignoring annual charges. A low or zero transfer fee can still cost you far more over time if the ongoing AMF and DFM charges are high. Always calculate the total cost of ownership over 10 to 20 years.
Transferring without independent advice. Many expats proceed through a single provider's in-house process without ever comparing alternatives. A whole-of-market adviser can identify better terms, lower charges, and more appropriate solutions.
Assuming your existing UK pension is fine where it is. UK pensions can expose non-residents to unnecessary currency risk, limited investment options, and complications when taking benefits from overseas. A review costs nothing — inaction can cost a great deal.
Not considering currency. If you're living in the EU, Middle East, or Asia, receiving pension income in sterling introduces exchange rate risk. An internationally structured pension can offer more flexibility in this regard.
A Quick Example
John is a 55-year-old British engineer living in France. He has a UK personal pension worth £450,000 and wants to consolidate it into a structure that's easier to manage from overseas, with more flexible investment options.
At a typical advisory firm charging 2% as a transfer fee, John would pay £9,000 upfront before any investment growth has been achieved — plus ongoing annual charges of around 1.5%.
With The Wealth Genesis, John pays a flat £3,000 transfer fee and an annual management fee of 0.85%. Over a 20-year horizon, the difference in retained capital, compounded - runs well into six figures.
What Should You Do Next?
If you're considering a UK pension transfer abroad, here are some practical steps to take:
Gather your pension details. Locate your latest pension statement and confirm whether it is a defined contribution or defined benefit scheme.
Understand the total cost of any proposed transfer. Ask for a clear breakdown of the initial fee, annual management fee, and any DFM charges.
Compare providers independently. Don't rely solely on the recommendation of your current pension provider or a single-platform adviser.
Speak to a specialist. UK pension transfers for expats involve regulatory, tax, and cross-border considerations that require qualified advice.
The Wealth Genesis offers an initial consultation to help you understand your options clearly, with no obligation to proceed. Our fixed-fee model means we are incentivised to give you the right advice - not the most expensive one.
International SIPP Transfer | Key Takeaways
Most firms charge between 1% and 5% as a percentage-based transfer fee, which can significantly erode your pension before investment even begins
Annual management and DFM charges compound this effect over time — always assess the total cost of ownership
The Wealth Genesis charges a flat £3,000 transfer fee for all pension transfers, regardless of fund value
Our annual management fee starts at 0.85% — reduced further for portfolios over £1,000,000
We are independent and whole-of-market, working with providers including Novia Global, Alltrust, and Morningstar to secure the best terms for our clients
If you're unsure whether an international SIPP transfer is right for you, or you'd simply like a second opinion on the fees you've been quoted, we'd be glad to help. View our fees or learn more about us to get started.
Frequently Asked Questions
What is an International SIPP and how does it differ from a standard UK pension? An International SIPP is a UK-regulated pension designed for people who live outside the UK. It works in the same way as a standard SIPP but is structured to accommodate non-UK residency, global investment options, and cross-border income needs. It remains subject to UK pension rules, including HMRC oversight.
How much does it cost to transfer a UK pension abroad? Costs vary widely. Most advisers charge a percentage-based fee of between 1% and 5% of the pension value, plus ongoing annual management and DFM charges. The Wealth Genesis charges a flat fee of £3,000 for all pension transfers, regardless of fund size, with an annual management fee starting at 0.85%.
Is it safe to transfer a UK pension to an international structure? Yes, provided you use a regulated adviser and transfer into a compliant, HMRC-recognised structure. Transfers into unregulated or non-QROPS-compliant schemes can trigger significant tax penalties. Always seek independent, qualified advice.
Can I transfer a defined benefit (final salary) pension abroad? You can, but pensions above £30,000 in value require regulated financial advice before any transfer can proceed. This is a legal requirement. Defined benefit transfers are complex and must be assessed carefully against the value of guaranteed benefits.
What happens to my pension if I move countries again after transferring? An International SIPP remains a UK-regulated structure, so it is generally portable regardless of where you live. Your tax treatment on contributions and withdrawals will depend on your country of residence and any applicable double tax agreements.
Why are annual management fees so important to understand? Because they compound over time. A difference of just 0.5% per year on a £500,000 pension can result in tens of thousands of pounds less in your pot over a 15 to 20-year retirement. Always ask for a full cost illustration, not just the headline transfer fee.
