By Mike Potts
As an expat, I am always interested in what is happening in the UK. So, when the Labour Party recently elected its new leader, Jeremy Corbyn, I’m not sure the world quite knew how the UK would respond. Corbyn’s shift towards the left for labour has changed the face of the party massively, which now leans more heavily towards a democratic socialist point of view than before.
Corbyn has not come with a soft approach. Straight off the successful election he has taken steps towards getting policy changed around renationalising public utilities as well as the railways, while reversing cuts to the public sector and welfare funding. Plus, he’s keen on removing university fees and bringing back student grants. His radical approach has left many feeling unsettled and a little uncertain.
According to BBC.com, even some MPs are getting hot and bothered, with Lib Dem leader Tim Farron suggesting that disgruntled Labour MPs can join his party – something Mr Watson (Labour’s deputy leader), dismissed out of hand, saying it “would be like leaving the Beatles to join a Bananarama tribute band.”
Expat in RSA
So how does this impact on you? How does the new labour leader’s election affect your pension?
For now, being early days, it is still hard to say what, if any, effect this will have on policy and legislation. With this obvious deviation from what might be considered ‘normal’ politics over the last 10 years it will be very interesting to see what suggestions around legislation are put forward.
What to do
My advice is to continue looking to the long-term goal. The pound continues to hold its own in the financial markets, and has been doing so for the last 20 years. It stands to reason it will continue to do so for the next foreseeable future.
If your pension is still in the UK, perhaps consider moving it to a QROPS in a different jurisdiction. The benefits of moving far outweigh keeping it in the UK.
Contact me today and I’ll help you move your pension into an HMRC-approved QROPS that is safe, stable and secure.