If you have been with the same pension trustee, investment provider or SIPP/QROPS for more than five years, it may be time to ask a simple question:

Am I still getting good value for the fees I am paying?

The pension you selected several years ago may have been perfectly suitable at the time. But the international pension market has changed significantly, with newer platforms and pension products offering different charging structures, investment options and levels of flexibility.

For some expats, reviewing an older pension arrangement and moving to a more modern solution can result in significant savings in ongoing charges.

That doesn’t mean transferring your pension is always the right answer. But if you haven’t reviewed your arrangement for five years or more, it is certainly worth investigating.

Many people set up an international SIPP or QROPS when they first moved abroad and then simply left it in place.

Five, seven or even ten years later, the pension is still there—but the costs may have gone largely unnoticed.

You could be paying several layers of charges, including:

• Pension or trustee administration fees
• Platform or custody charges
• Investment fund charges
• Adviser or ongoing management fees
• Dealing and transaction costs
• Currency or foreign exchange charges
• Additional charges for accessing or managing your pension

Individually, some of these charges may look relatively small.

Together, they can make a significant difference to your retirement wealth.

And because many pension charges are deducted automatically, you may not even realise how much you are paying each year.

For an expat, there may also be changes in:

• Your country of residence
• Your tax position
• Your retirement plans
• Your investment objectives
• Your preferred currency
• Your pension income requirements
• Your estate-planning objectives

A pension that was appropriate when you were 45 and newly living overseas may not be the most suitable arrangement when you are 52 and approaching retirement.

This is the question many people struggle to answer.

You may know that you have an international SIPP or QROPS, but do you know the total annual cost?

For example, imagine a pension worth £500,000 with total charges of 2% per year.

That’s £10,000 a year in costs.

If a comparable arrangement could provide the required investment and pension services for 1% per year, the difference would be £5,000 annually.

Over many years, that difference can become substantial because money that is paid in charges is no longer available to remain invested.

This is why looking at the total cost of your pension is much more useful than looking at one individual fee.

The international pension market has changed considerably over recent years.

Modern International SIPPs can provide expats with a flexible pension structure while offering access to a broad range of investments and greater transparency around costs.

You can learn more about how an International SIPP works on our International SIPP page.

For certain individuals living overseas, a QROPS (Qualifying Recognised Overseas Pension Scheme) may also be appropriate. However, QROPS arrangements have specific rules and potential tax implications, so they should never be considered purely on the basis of charges.

Our QROPS guide explains the key considerations.

The important point is this: Don’t assume that the pension you have today is still the most cost-effective option simply because it was suitable when you set it up.

 This is particularly important with QROPS. HMRC rules provide for a 25% Overseas Transfer Charge in certain circumstances, and whether the charge applies depends on factors including the individual’s circumstances, the receiving scheme and the nature of the transfer.

HMRC also confirms that an overseas pension scheme must meet the relevant requirements to qualify as a QROPS for UK tax purposes.

So the right question isn’t simply: “Can I find a cheaper pension?”

It is: “Can I achieve a better overall outcome without giving up valuable benefits or creating unnecessary tax or transfer costs?”

Your pension provider isn’t necessarily the biggest source of cost.

The underlying investments can also have a significant impact.

For example, you could have:

Pension administration fee + platform fee + adviser fee + fund charges + transaction costs

This is why a proper pension review should look at the total cost of ownership, rather than focusing on a single headline charge.

A newer pension with a lower administration fee isn’t necessarily cheaper if the underlying investment costs are higher.

Conversely, a slightly higher platform fee could potentially be justified if it provides better investment access, administration or service.

The objective should always be value—not simply the lowest possible fee.

We regularly speak to clients who have held their international pension arrangements for many years without a detailed review of their total charges.

In some cases, comparing the existing arrangement with modern alternatives has identified opportunities to reduce ongoing costs.

But every situation is different.

The only way to know whether you could potentially save money is to compare your existing arrangement with suitable alternatives.

That means looking at your current provider, pension value, investment portfolio, charges, benefits and personal circumstances before making a recommendation.

A Simple Five-Year Pension Check

If you have had the same SIPP, QROPS, trustee or investment provider for more than five years, ask yourself:

1. Do I know exactly how much I’m paying each year?

Not just the obvious administration fee—look at the total cost, including investment and advice charges.

2. Has my pension been properly reviewed recently?

A pension review should consider your current circumstances, objectives, investment strategy and retirement plans.

3. Are there newer alternatives that could provide better value?

The market changes. It is worth comparing your existing arrangement with what’s available today.

4. Would transferring create any costs or tax implications?

Never assume a transfer is straightforward, particularly with an overseas pension or QROPS.

5. Is my pension still appropriate for where I live today?

Your country of residence can be an important consideration when reviewing an international pension.

If you don’t know the answers to these questions, it may be time for a review.

Your pension could be one of the largest assets you own.

Yet many people spend more time comparing the cost of their mobile phone contract than they do reviewing the charges on a pension worth hundreds of thousands of pounds.

If your SIPP or QROPS was established more than five years ago, don’t automatically assume you’re paying too much—but don’t assume you’re getting the best deal either.

A professional review can establish what you’re currently paying, whether your existing arrangement remains suitable and whether newer alternatives could potentially offer better value.

At Galileo Wealth, we specialise in financial planning and pension advice for expats. We can review your existing pension arrangements and help you understand the costs, options and potential benefits of making a change.

Is it time to review your pension?

If you’ve had the same SIPP, QROPS or investment provider for more than five years, book a free, no-obligation consultation with Galileo Wealth to discuss your situation.

A review doesn’t mean you have to transfer.

It simply means finding out whether your current pension is still working as hard as it should—and whether you’re paying more than you need to.

Book your free consultation or learn more about our International SIPP advice and QROPS advice.

Important: Pension and QROPS transfers are not suitable for everyone. Transferring can involve costs, tax implications and the loss of valuable benefits or guarantees. Any decision to transfer should be based on a full assessment of your individual circumstances and objectives. The information in this article is for general information only and does not constitute personal financial advice.