Going to live abroad is a major decision to take, especially if you are going to be claiming your pension there. You have no doubt worked hard for many years and you need to make sure before you leave the UK that all will go well with your monthly pension payments. It makes sense to do your homework in advance to help you plan and make sure the move runs smoothly.

Before you go, you should be clear about your financial situation, preferably with the help of an Independent Financial Advisor (IFA). Find out about your tax liability in the UK, your social security benefits and National Insurance or IKA contributions in advance and get a pension forecast. There are many websites on the Internet that can help you do this too: they include the Department for Work and Pensions; HM Revenue and Customs; and Directgov (under 'Britons living abroad’). You can also find out whether offshore banking is appropriate. 

You will need to open a local bank account in Greece. There are banks in the UK with branches in Greece that can facilitate this or you could make contact with a branch nearby where you are planning to live and open an account with them. You will need to inform the authorities such as HM Revenue and Customs, National Insurance and the Department for Work and Pensions that you are moving and provide them with an address and also your Greek bank account number so that you can receive pension payments.

To enable a pension to be paid directly into a Greek bank account a form must be obtained from the Pensions Service. This needs to be completed by the pensioner giving Greek bank account details and sent back to the Pensions Service who will then make the necessary arrangements. For more information you can contact The Pensions Service, Medical Benefits, Tyneview Park, Newcastle NE98 1BA, Tel (0044) 191 218 1999 – website: www.thepensionservice.gov.uk

Once you arrive in Greece you need to register with the local authorities and get a residence permit. You can also register with the local British embassy. If you pay into the Greek social security system then your contributions there (or residence) may help you to meet the contribution conditions for a UK state pension. In addition, you may be entitled to a state pension from your country of residence if you are contributing to its state pension scheme.

Living in Greece will entitle you to the annual increase to your state pension rates.

It may interest you to know that from 2006 you have been able to use the QROPS (pronounced Crops) or Qualifying Recognised Overseas Pension Scheme instead of leaving your pension in the UK. Many people are not happy with the performance of British pension schemes and this option enables you to increase the amount of overall income received and to leave all unused pension funds to their partner and/or children. However, the UK authorities will only allow you to transfer a pension abroad if the scheme meets certain criteria. 

Firstly you need to be living, or going to live, abroad and secondly you must remain living abroad. Whilst you don’t have to reside in the same country, the scheme needs to be registered with an authorised trustee within the legal jurisdiction of the country it’s based in. Also, it must be a true pension scheme, not a vehicle that simply allows pension holders to access all their funds immediately, tax free. 

The benefits of a QROPS can be extremely advantageous and would be well worthwhile looking into if you are moving abroad on a permanent basis. The not-so-good news is that it takes 5 years of being a non-resident and moving the pension for a QROPS to show real benefits. 

After your pension scheme has been transferred and you’ve been non-resident outside the UK for 5 years the QROPS Trustee no longer has to report any withdrawals or payments to the HMRC. This is when the relevant overseas jurisdiction takes over and UK laws such as the requirement to buy an annuity by age 75 (or be faced with an 82 per cent tax charge) no longer apply. This means more flexibility, greater income potential and more investment potential than a UK pension. 

And finally, an often overlooked aspect: you must make sure that you transfer your funds through a reputable currency exchange company such as Smart Currency Exchange. This will ensure that you get a far better exchange rate – in other words, far more money in your bank account abroad.

Please make sure that you check with an IFA or the relevant pension departments – this is just an outline and by no means a comprehensive pension advisory plan.

Start your hunt for a home in Greece here…
If you’re searching for a Greek property, a good place to start is the Greece Buying Guide’s new property search facility. To start your search now visit
http://www.greecebuyingguide.com/content/greece-properties