Ask James – How could I protect my pension against a weakening pound

Q. How could I protect my pension against a weakening pound in the future?

A. Clearly with sterling having a terrible time, particularly in the last few months, this can be a very big worry, not only for holidaymakers but more so for those expatriates that receive income from a UK pension, which invariably is always paid in sterling. Such individuals may wish to consider transferring any UK pension that they have yet to draw from or if in a defined contribution scheme and still in drawdown into a Qualifying Recognized Overseas Pension Scheme which can usually make payments in most freely available currencies. There are other considerations, not just currency, when considering a pension transfer but protection against exchange rate swings is one of them.

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