For many people who have worked in the UK and are now living or planning to retire in Ireland, one key financial question looms: “Can I transfer my UK work or private pension to Ireland?” Please note this does not apply to the UK state pension.
The answer is mostly yes — and it can often be a very smart financial move.
This guide explores how transferring your UK pension to Ireland works, using a Qualifying Recognised Overseas Pension Scheme (QROPS), and what you need to consider before making the leap.
What Is a QROPS?
QROPS stands for Qualifying Recognised Overseas Pension Scheme. It’s a type of pension scheme that meets requirements set by HM Revenue & Customs (HMRC) in the UK, allowing UK pension benefits to be transferred internationally without incurring UK tax penalties. Essentially, it’s HMRC’s “approved list” of foreign pension schemes.
In Ireland, certain pension providers products are recognised as QROPS. This means that if you’re living in Ireland and have a UK pension (or will have one in the future), you may be eligible to transfer it here via a QROPS.
Why Transfer Your UK Pension to Ireland?
There are several compelling reasons for moving your pension from the UK to Ireland, especially if you’re a long-term resident or planning retirement here:
1. Avoid Currency Risk
Most UK pensions are paid in sterling. If you live in Ireland and spend in euros, you are exposed to exchange rate fluctuations which could impact your pension income. By transferring to an Irish scheme, your pension assets and income can be denominated in euro.
2. Simplify Your Retirement Planning
Managing pensions in multiple countries can be administratively complex. A QROPS transfer consolidates your retirement savings into a single, local pension plan — making it easier to manage, draw down, and understand your benefits.
3. Inheritance Planning
Some UK pension schemes may have restrictions or tax liabilities upon death, especially if benefits are taken. QROPS schemes can sometimes offer more flexibility and better estate planning options, though this depends on the scheme type and your age at death.
4. Tax Efficiency
UK tax rules on pensions are subject to change — and there have been significant reforms in recent years. Transferring your pension to Ireland may offer more certainty around tax treatment, especially once you become fully tax-resident here.
Am I Eligible to Transfer My UK Pension?
To transfer your UK pension to Ireland, you must meet several conditions:
- Your pension must be a UK registered pension scheme, such as a defined contribution (DC) or defined benefit (DB) occupational scheme or a personal pension.
- You must transfer to a QROPS-approved Irish pension provider — typically a PRSA, Buy-Out Bond.
- You must not have started drawing down your pension benefits in the UK.
Defined Benefit Pensions: If you’re in a DB scheme, you’ll need to request certificate of benefit comparison. This can be hard to get, so make sure to seek professional financial advice before you proceed to far down the this path.
Tax Considerations
Transferring a UK pension to Ireland is a major financial decision with several tax implications.
UK Tax Rules:
- If you transfer to a QROPS within 10 years of leaving the UK, and draw benefits within 5 years, UK tax rules may still apply.
- Transfers over the UK Lifetime Allowance (£1,073,100 as of 2025) may be subject to charges if not structured correctly.
Irish Tax Rules:
- PRSAs and Buy-Out Bonds are subject to Irish rules on drawdown age (usually from 60) and tax on pension income.
- 25% tax-free lump sum up to €200,000 typically available.
- Remaining benefits are taxed at your marginal income tax rate with potential PRSI and USC charges.
A financial advisor will help you navigate double taxation agreements (DTAs) between the UK and Ireland to ensure you don’t pay tax twice on your pension income.
Key Factors to Consider Before Transferring
When deciding whether to move your UK pension to Ireland, ask yourself:
- Where will you retire? If your long-term home is Ireland, aligning your pension makes sense.
- How big is your pension? Larger funds may need careful tax planning.
- Do you value flexibility or security? Irish PRSAs offer flexibility, while UK pensions may provide more structured benefits.
- What about tax relief? Both systems offer tax advantages, but they apply differently depending on your residency.
Potential Drawbacks of Moving a UK Pension to Ireland
Transferring isn’t the right option for everyone. There are some risks and downsides to consider:
- Loss of UK Protections – UK pensions are protected by the Financial Services Compensation Scheme (FSCS). If you transfer to Ireland, you may lose this safety net.
- Exit Fees – Some UK pension providers charge high exit penalties when transferring.
- Currency Risk During Transfer – If sterling is weak when you transfer, you could lose out on exchange rates.
- Transfer Fees – There are administrative and advisory costs involved in moving your pension.
- HMRC Tax Charges – If you have lived in the UK within the past 10 years and withdraw benefits, HMRC may apply a tax charge of 25%–40%. Careful timing can help you avoid or minimise this.
What’s the Process For A QROPS Transfer?
Transferring your UK pension to Ireland is not something you do overnight and can take a substantial amount of time. Here’s a step-by-step guide:
Step 1. Eligibility Check
You must transfer your pension before you begin drawing benefits (before “benefit crystallisation”).
Step 2: Get Advice.
Irish regulations (as per the QFA framework) recommend getting regulated financial advice. You will have to get advice from a financial advisor in the Republic of Ireland and a financial advisor in the UK.
Step 3: Identify a Suitable Irish QROPS.
Your adviser will help you choose a QROPS-eligible product. In Ireland, these include:
- Buy-Out Bonds (Personal Retirement Bonds)
- PRSAs (Personal Retirement Savings Accounts)
- Occupational Pension Schemes
Each has pros and cons depending on your age, employment status, and retirement goals.
Step 4: Request a Transfer Value.
You’ll need to ask your UK pension provider for a transfer value quote, which is usually guaranteed for 3 months.
Step 5: Complete Transfer Paperwork.
This includes QROPS transfer forms for both the UK and Irish providers. Expect anti-money laundering (AML) checks and ID verification.
Step 6: Transfer Execution.
Once all documents are in place, the UK provider sends funds directly to the Irish QROPS, where they will be invested as per your chosen investment strategy.
Final Thoughts
Transferring a UK pension to Ireland is a big decision that can have long-term benefits for your retirement planning. The move can simplify your finances, reduce currency risk, and provide better estate planning options—but it also involves fees, potential tax traps, and the loss of UK pension protections.
The key is timing and planning. With expert advice, you can decide whether moving your pension is the right choice and, if so, ensure the transfer is completed efficiently and tax-effectively.
👉 If you’re considering moving your pension, speak to a qualified financial adviser who understands both UK and Irish pension rules.
Can I cash out my UK pension in Ireland?
No. You have to transfer the pension to Ireland through a QROPS before you can access the funds in retirement.
You can typically take up to 25% as a tax-free lump sum (up to €200,000 in Ireland). The rest must go into an ARF or annuity.
Otherwise you have to take the income from the UK which could cause more complicated tax returns.
Is a QROPS required for moving a UK pension to Ireland?
Yes, most transfers use a QROPS structure (Qualifying Recognised Overseas Pension Scheme), such as an Irish PRSA or PRB.
Will I pay tax when transferring my UK pension to Ireland?
Not directly on the transfer, but if you withdraw funds within 10 years of leaving the UK, HMRC may apply a tax charge.
Can I leave my pension in the UK and still live in Ireland?
Yes, but you’ll face exchange rate risk, possible dual taxation issues, and may have limited access to UK advisory services.
Do I lose UK pension protections if I transfer?
Yes, you lose FSCS protection once your pension is outside the UK, however if you move to and Irish QROPS PRSA, or PRB Irish protections will apply.
Is it worth moving my UK pension to Ireland?
It depends on your retirement plans, pension size, and tax situation. For many retirees in Ireland, transferring is the better option—but it’s not always the case.
