Hi all,
I'm about to retire early next year at 55 and thought I had all my options sorted - not so. I have several work related pensions which should give me a decent, index-linked base income. Regarding my private pension with Royal London - two financial advisors told me I was unlikely to find a provider that would pay an annuity abroad and they suggested the Novia Global SIPP and SIPPs in general as the only real viable option for overseas residents. This led me to take a look at MyExpatSIPP to self manage.
Based on the advice and my subsequent research I feel that, for now and the immediate future, moving to a global SIPP is probably the best idea, drawing enough each year as a top-up to live comfortably but keeping within the lower Japanese tax bands where possible. I could supplement income for larger expenses from savings if necessary or take the hit with higher pension income.
I'll quit my Japanese PT job next year but continue a UK based online job that gets me around £4000pa for at least a few more years. In 10-12 years time I'll have a full UK pension at 67, my wife half a UK pension. I'll have a quarter of a Japanese pension at 65, my wife about half at 60. We've both got a bit invested in iDeco - mostly done for tax deduction and to convert some sterling to yen.
My questions then:-
1) Am I overlooking anything from a Japan perspective? I am aware "earning" more means paying more tax - I have no problem with that. I just want to be tax efficient.
2) Do I need a financial advisor to do this for me? My gut instinct says no - I'm not that wealthy. My skillset (lack of) says yes although I notice MyExpatSIPP has premade investment strategies based on risk so I think this could be the answer.
3) Should I talk to a Japanese tax consultant to discuss tax efficiency? As in 2 above though, it seems excessive.
4) Any issues with MyExpatSIPP and global SIPPs in general? As far as I can see they are private pensions just like any other in the UK with relatively low charges (in fact lower than my current pension).
Thanks in advance for any help.
MyExpatSIPP thoughts (and general UK/Japan pensions)?
Re: MyExpatSIPP thoughts (and general UK/Japan pensions)?
Another large UK Financial Services group told me a few years ago that Brexit complexities were the main reason why the only option now available to their non-UK tax resident clients was 100% payout (of a private pension plan).
Who are MES (MyExpatSIPP) competing with to attract clients?
MES accounts for the year ended 30 Nov 2023 state: "The average number of employees during the year was 4 (2022-2)." - Companies House info.
One concern I'd have is their small size. Would they survive a market downturn and/or client reduction?
Another concern I'd have is what would be covered if they went out of business:
"If this firm goes out of business owing you money you may be able to claim compensation from the Financial Services Compensation Scheme (FSCS)."
https://register.fca.org.uk/s/firm?id=0 ... 049L2u7QAC
Who are MES (MyExpatSIPP) competing with to attract clients?
MES accounts for the year ended 30 Nov 2023 state: "The average number of employees during the year was 4 (2022-2)." - Companies House info.
One concern I'd have is their small size. Would they survive a market downturn and/or client reduction?
Another concern I'd have is what would be covered if they went out of business:
"If this firm goes out of business owing you money you may be able to claim compensation from the Financial Services Compensation Scheme (FSCS)."
https://register.fca.org.uk/s/firm?id=0 ... 049L2u7QAC