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Did You Know?

When your pension plan starts paying out, the amounts received will be taxable in Canada whether you leave the pension in the UK or have it transferred to Canada.

Pension payments are subject to tax in Canada. It doesn’t matter if the source is in Canada or the UK.

If you transfer your UK pension to Canada, it may qualify to go into a special type of RRSP.  There is no tax on the lump sum transfer and you would only pay tax when you take some money out for retirement expenses. If you don’t transfer it, when you retire, the pension will pay out in pounds and there is all the hassle and expense of converting them to dollars each time. The amount you receive in Canadian dollars would fluctuate with exchange rates – experts recommend that your income and expenses should be in the same currency.  Fewer surprises!

Give us a call or e-mail and we would be happy to explore if you are eligible to transfer a UK pension and whether or not it makes sense for you.

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Did You Know?

Not every UK pension is eligible for transfer.

There are two major exceptions: The first is the old age or state pension and the second is any unfunded pension plan (often provided by the Public Sector e.g. National Health Service, Teachers, Civil Service, Police, Military).
Did You Know?

If you are going to retire in Canada and you have a Defined Contribution Pension in the UK, life might be better if you transfer the funds to Canada.

If you leave your plan in the UK and it comes into payment, you will normally be paid in British pounds. You will have all the hassle and expense of converting every payment to dollars.
Did You Know?

If you live in Canada and intend to retire there too, there is little value of having a UK pension that allows you to take a tax free lump sum.

Many UK pension plans allow the beneficiaries to make a withdrawal of 25% on reaching the retirement age. In the UK that 25% lump sum is not taxed. Unfortunately, most withdrawals from a pension plan are taxable for Canadian residents.