Pensions, 401(k)s & IRAs

Retirement advice to work as one, across countries

Individuals and families with US UK connections often lead varied and busy lives, working for different companies around the world and accumulating numerous retirement plans in multiple currencies that may be difficult to access from another country. As we focus on our lives and aspirations, it is easy to postpone dealing with pension decisions. At retirement or at the demise of a spouse, the strategy involved in accessing pensions in a tax-efficient manner may be time consuming and confusing.

By engaging Vie International to help with your retirement planning, clients gain clarity and purpose with their financial welfare. We can manage your individual accounts in the US and UK to allow for greater control and customised solutions.  We reach out to your existing providers to review your plans including your current investment allocation and historical growth. We will ease the decision-making by showing you investment strategies that match your risk tolerance. We will write a full and personal suitability report to determine whether it is in your best interest to consolidate your pensions.

As independent financial advisors, we review the US and UK financial markets for solutions to deliver the best tax efficiency and value for your needs. We provide broader financial planning to ensure that your investments and lifestyle planning are coordinated and designed to meet your goals.

As a member of the M Financial Group, we have deep infrastructure in the US to provide Traditional and Roth IRAs, 401(k) Rollovers, Taxable Accounts, UTMA and UGMA and 529 plans. In the UK, we are authorised and regulated to provide Self Invested Personal Pensions [SIPPs], Individual Savings Accounts [ISAs] and General Investment Accounts [GIAs].

Wherever in the world you choose to call home, we have a solution for your UK and US retirement assets.

Cross-border retirement planning for a US expat

John is a US citizen who built a distinguished career with a leading global investment bank, working in New York and London. Over the course of his working life, he accumulated significant wealth exceeding USD 50m. At age 59, he is semi-retired and living back in the US pursuing a second career as an executive coach whilst his children complete their graduate education.

The challenge: managing a UK pension for a US resident

Although the majority of John’s wealth is managed by a US-based wealth manager, he accumulated a substantial UK company pension valued at £2.3m during his time working in London. As the company pension scheme approached its plan end date, John needed specialist cross-border advice on his options; this is advice that his US-based wealth manager was neither knowledgeable nor regulated to provide.

Considerations

A UK retirement plan requires a UK authorised and regulated financial advisor to analyse the plan’s contribution history, charges and growth and to provide regulated financial advice required before moving the pension funds. Structuring and investment strategies are analysed to match the client’s personal situation. When the client is living in the US, cross-border suitability must also be considered to ensure the retirement strategy is tax efficient and accessible and in the currency of choice.

One of the often overlooked consequences of an international life is the effect that relocation can have on existing financial accounts. It is far more prevalent than most clients appreciate: UK pension providers liquidating holdings to cash upon learning that a policyholder has moved to America; US institutions closing accounts entirely when they become aware that their client has moved overseas. In many cases, clients only find out when they receive a letter to say their account is closing or funds are not accessible.

If a client would like to withdraw pension funds, applying knowledge of the US UK tax treaty, the UK’s Pension Commencement Lump Sum [PCLS] rules and other relevant factors are important to ensure that the pension is paid in both a US and US tax efficient manner.

The Vie solution

John now benefits from a unified investment approach for his UK pension pot as Vie International moved his company pension funds into a Self Invested Pension Plan, SIPP. As John is now living in America and plans to remain living there in retirement, Vie International managed the foreign exchange of his account value from sterling to dollars and his money was invested in a US compliant strategy. During the consultation process, further cross-border planning opportunities were identified and John’s 401(k) in the US was moved into a Rollover IRA, which has a mirrored investment portfolio to the SIPP, based on his risk tolerance for his retirement assets.

Are you a US citizen with a UK pension?

If you are an American expat returning from the UK, a US citizen with a UK workplace pension, or a high-net-worth individual managing retirement assets across borders, Vie International can provide the specialist, regulated advice you need.

Contact Vie International today to discuss your cross-border retirement planning needs.