You are now leaving the Alexander Peter Wealth Management Global website and being redirected to the Alexander Peter Wealth UK website. The Alexander Peter Wealth UK website is designed for UK residents only and may include products and services that are not covered in your region.

How to transfer your UK pension to the US — and what to consider before you do

If you have a UK pension and now live in the United States, you have options — but the rules are more complex than they were even five years ago.

An international SIPP (Self-Invested Personal Pension) is often the most effective vehicle for UK expats in the US. It allows your pension to be held in US dollars, invested across a wide range of assets, and paid directly into a US bank account when you retire.

Consolidating multiple UK pensions into a single international SIPP can also significantly reduce the fees you are paying. However, a pension transfer is not right for everyone. There are costs involved, tax implications on both sides of the Atlantic to consider, and defined benefit (final salary) schemes require especially careful analysis.

We will always give you an honest assessment of whether a transfer makes sense for your specific situation.

Couple in their sixties reviewing their retirement plans on a laptop at the kitchen table

FAQs

Can I transfer my UK pension to the US?

Yes, but you cannot transfer a UK pension directly into a US 401(k) or IRA. The most common route for UK expats in the US is to transfer into an international SIPP, which operates under UK pension rules but can hold multiple currencies and pay directly to a US bank account.

What is the difference between a SIPP and a QROPS for US residents?

Since 2017, transferring a UK pension to a QROPS located outside your country of residence has triggered an Overseas Transfer Charge of 25%. For most US residents, an international SIPP is therefore a more tax-efficient structure than a QROPS in Malta or another offshore jurisdiction.

I already have a QROPS from when I moved abroad. What should I do?

We see many clients in this situation. If your QROPS is in Malta or another offshore jurisdiction and you now live in the US, you may be paying higher fees than necessary and your original adviser may no longer be licensed to operate in the United States. We offer a complimentary review — get in touch and we will assess whether your current arrangement is still appropriate.

Do I need to transfer my UK pension at all?

Not necessarily. Depending on the size of your pension, your retirement timeline, and your tax situation, leaving your UK pension in place may be the right decision. We will always give you an unbiased comparison of your options.

How are UK pension withdrawals taxed in the US?

UK pension income is generally taxable in the US under the US-UK tax treaty. The specific treatment depends on the type of pension and your individual circumstances. We work alongside US tax advisers to ensure our clients understand the full picture before making any decisions.

There are advantages as well as disadvantages to transferring a pension that must be considered. A pension transfer is not suitable for everyone and will involve additional costs. No promises or guarantees of investment performance are offered.