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    • Home • Advice • Common questions

    Can I draw down from a UK pension if I live abroad?

    03 July 2024

    Question by Kirti

    Hi,

    I have a small pension pot from an old employer worth £10,300. It’s managed by Aegon. I asked if I can drawdown from this as don’t want to go through the trouble of transfer to another provider. I have reached the age of 60 as per the scheme rules and should be able to start drawing a pension. Their response was they cannot offer me a drawdown as I live abroad. I must transfer it to a foreign pension provider. Is this really the case that the regulations prevent me from drawdown if I reside abroad?

    Thanks.

    Answered by Boring Money

    There is no regulation that explicitly states you cannot draw down from a UK pension if you live abroad, as long as your nominated bank account is also registered in the UK. Not all pension providers will send money to a non-UK bank account. If they do, they may charge extra for it.

    In this case, the reason could be that Aegon is not allowing you to draw down because your current nominated bank account is not UK-registered. Therefore, it is recommending that you transfer your pot into a new, non-UK pension in order to facilitate drawdown.

    It's a good idea to contact Aegon directly to find out if this is the case. If so, and you decide to transfer to a new, non-UK pension, you'll need to make sure it's classed as a qualifying recognised overseas pension scheme (or QROPS).

    Alternatively, you may be able to open a new UK bank account (or nominate an existing one) for Aegon to deposit your drawdown funds into.

    Either way, this process could get quite complex, so it's probably a good idea to check in with both 1) Aegon directly and 2) a financial adviser, who can guide you and make sure you're making the right decision for your money.

    Answered by

    Boring Money

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    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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