How to Transfer and Access Your UK Pension from the UAE

Transferring or accessing a UK pension while living in the UAE is a subject that raises important financial questions for British expatriates. Whether you’re nearing retirement or simply planning ahead, understanding how your UK pension works once you’ve relocated is essential to protecting your income, complying with international regulations and maximising long-term value.

In this blog, Blacktower Financial Management explains the key considerations for British expats in the UAE looking to access or transfer their pension funds, and outlines what to expect from the process.

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Understanding the Basics of UK Pensions Abroad

If you’ve worked in the United Kingdom, chances are you’ve built up pension benefits either through a defined benefit (final salary) scheme or a defined contribution (personal or workplace) plan.

Living in the UAE doesn’t mean you lose access to your pension, but it does mean you need to think more carefully about how and when you draw from it, and whether transferring it to an international structure may offer greater flexibility or tax treatment.

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Can You Transfer Your UK Pension While Living in the UAE?

Yes, in many cases it is possible to transfer a UK pension to an international scheme. The most common structure is a Qualifying Recognised Overseas Pension Scheme (QROPS) or an International SIPP (Self-Invested Personal Pension).

Each has its own rules, benefits and suitability depending on your residency status, the size of your pension pot, and long-term retirement plans.

QROPS:
 QROPS are offshore pension schemes that meet HMRC criteria and allow British expats to consolidate pensions into a vehicle outside the UK. However, following rule changes in recent years, the number of qualifying jurisdictions has narrowed, and additional tax charges may apply depending on your country of residence.

International SIPPs:
 A popular alternative for UAE-based expats, international SIPPs are UK-regulated and may offer more cost-effective and flexible access to your pension without the overseas transfer charge associated with QROPS. They allow you to manage your pension in a more globally accessible format, while retaining UK oversight.

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Key Benefits of Pension Transfers

A pension transfer might offer you:

• Greater control over how your pension is invested
  
• The option to consolidate multiple pension pots into a single account
  
• Access to your pension in retirement without needing to return to the UK
  
• Potential currency flexibility (reducing GBP exchange rate risk)
  
• Tailored succession planning options that reflect your family structure and international lifestyle

Important: Pension transfers are not suitable for everyone and can involve loss of guarantees, charges, and tax implications. You should seek regulated financial advice before making any decisions.

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Important Considerations Before Transferring

Transferring a pension is a significant financial decision that should never be rushed. Factors to review include:

• Tax implications: Transferring a UK pension overseas could trigger tax charges depending on where you live and where the scheme is based.
  
• Loss of guarantees: Final salary (defined benefit) pensions offer guaranteed income for life. Transferring out of these can mean losing valuable benefits.
  
• Scheme stability and fees: Understand the cost structure, underlying investments and regulatory status of any new plan.
  
• Access rules: Each jurisdiction and provider will have its own rules about how and when funds can be withdrawn.
• Pension transfers and overseas schemes may not be suitable for all investors and can carry significant risks, including the loss of valuable guarantees. You should take professional  financial, legal, and tax advice in relation to your circumstances before making any decisions.

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How to Access a UK Pension from the UAE Without Transferring

If you choose to keep your pension in the UK, you can still access it from abroad. Here’s how:

1. Leave the pension where it is:
    Many UK providers allow you to take benefits from overseas, provided your identity is verified and you meet the usual eligibility criteria (currently age 55, rising to 57 in 2028).
   
2. Tax on withdrawals:
    If you are non-UK resident for tax purposes and have been overseas for at least five full tax years, you may not be subject to UK income tax on pension withdrawals. However, the UAE’s position as a no-income-tax jurisdiction does not exempt you from potential UK tax obligations unless your residency status is clearly established.
   
3. Banking and currency:
    Payments can often be made to international bank accounts, but be aware of exchange rate fluctuations and potential fees.
   

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Will HMRC Block Access to My UK Pension?

HMRC does not block access to pensions based on location. However, issues can arise if:

• Your provider cannot verify your identity or residency
  
• You request a transfer to an unrecognised scheme
  
• You fall victim to pension scams or unauthorised schemes
  

Always ensure your pension is held with a regulated provider and that any transfer is completed under professional guidance.

What Happens to My Pension If I Pass Away?

UK pension rules allow for your remaining funds to be passed to your beneficiaries, and in many cases, tax-free if you die before age 75. This becomes an important consideration for estate and succession planning, especially for expats with cross-border families.

Some international pensions offer additional flexibility or privacy in how assets are passed on. Make sure your nominated beneficiaries are up to date, and review your will and estate documents in both the UK and UAE.

Should You Transfer or Keep It in the UK?

There’s no one-size-fits-all answer. Whether it’s better to transfer or retain your pension in the UK depends on:

• The type and value of your existing pension(s)
  
• Your long-term residency plans
  
• The role your pension plays in your overall retirement income strategy
  
• Your appetite for investment control versus income certainty
  

A financial adviser at Blacktower Financial Management (DIFC) can help assess your options, explain the risks, and make sure any recommendation reflects your personal goals.

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Final Thoughts

Your UK pension is one of your most important financial assets, and understanding how to manage it while living in the UAE can make a significant difference to your future.

Whether you’re considering a transfer or planning to access your pension directly, professional guidance ensures you avoid costly errors and build a strategy that supports your long-term objectives.

At Blacktower Financial Management (DIFC), we help British expats across the UAE review their pensions and make informed decisions. If you’re ready to take a closer look at your options, speak to one of our advisers today.