DWP to consult on overseas pension blockage


The Government plans to act to help thousands of expatriates who are struggling to access their final salary pensions eight months after the launch of the pension freedoms.

Money Marketing understands the Department for Work and Pensions is to launch a consultation to address concerns that people living abroad with UK pensions are having difficulty in transferring their defined benefit funds.

Since April 2015 all DB transfers over £30,000 must be overseen by a pension transfer specialist, meaning that advisers working overseas must link up with UK advisers holding the correct qualifications.

In December Money Marketing revealed how international advisers are failing to link up with UK advice firms.

More than half (56 per cent) of 289 international advisers surveyed by Old Mutual Wealth said they were facing challenges in establishing partnerships, with high fees and the reluctance of UK advisers the main stumbling blocks.

The FCA has also flagged the issue as one of the areas it has had most feedback on.

The DWP is expected to announce what action it will take in line with the FCA’s work on the Financial Advice Market Review.

A DWP spokeswoman says: “The Government will consider how best to take forward this issue following  the FAMR review, which will help any exercise to better align with FAMR’s conclusions.”