For many Americans with UK pensions, managing retirement savings across borders can feel complicated. Between tax rules, fees, and limited investment flexibility, finding the right solution matters. That is where a new low cost SIPP (Self-Invested Personal Pension) comes in — offering flexibility, transparency, and access for US residents with UK pensions.
What is a SIPP?
A Self-Invested Personal Pension (SIPP) is a UK pension structure that allows individuals to take full control of how their retirement savings are invested. Unlike traditional pension schemes, a SIPP gives you the freedom to choose from a wide range of funds, ETFs, and other investment options.
For US residents who have previously worked in the UK, a SIPP can be an ideal way to consolidate old UK pensions into one manageable, globally accessible account.
Can US Residents or Citizens Have a SIPP?
Yes, US citizens and residents can hold a SIPP, provided the provider is authorized and equipped to handle clients subject to US tax reporting and FATCA regulations. While not all UK pension providers accept US-based clients, international SIPP platforms such as those supported by Harrison Brook USA are specifically designed for cross-border investors.
This means you can retain the benefits of a UK pension while residing in the United States — without having to transfer to an unrecognized offshore plan.
Why Choose a Low Cost International SIPP?
Many expats and returning Americans are frustrated by hidden fees, currency conversion costs, or limited investment access in their existing UK pension schemes.
A low cost SIPP solves these challenges by offering:
- Transparent pricing with clear annual fees
- Full online access to monitor and manage your pension
- Multi-currency investment options (GBP, USD, EUR)
- Compliance with both UK and US regulations
- Professional financial advice tailored to expats
The combination of flexibility and cost efficiency makes this structure particularly appealing for US residents managing UK pensions.
Can a Non-UK Resident Have a SIPP?
Yes. A non-UK resident can open and hold a SIPP. The key requirement is that contributions made while abroad may not receive UK tax relief unless you have qualifying UK earnings. However, you can still transfer existing pensions from previous UK employment into your new SIPP and manage them without restriction.
For example, if you worked in the UK before moving to the US, you can consolidate your former workplace pensions into an international SIPP. This simplifies management, improves visibility, and reduces overall fees.
Taxation: How UK and US Rules Interact
Understanding tax implications is essential. The UK-US tax treaty ensures that pensions are not taxed twice. Generally:
- Pension growth within the SIPP is tax-deferred.
- Withdrawals may be taxable in your country of residence — in this case, the United States.
- The UK will typically not tax pension distributions made to a US resident if they are tax-resident in the United States.
It is important to work with an adviser experienced in cross-border taxation to avoid unnecessary withholding or reporting issues. Harrison Brook USA partners with US-licensed professionals to ensure your plan remains fully compliant.
How Does a Low Cost SIPP Compare to Traditional Pensions?
Traditional employer pensions often come with limited investment choice and higher annual management fees. By contrast, a low cost SIPP provides:
| Feature | Traditional Pension | Low Cost SIPP |
|---|---|---|
| Investment Choice | Limited | Wide global range |
| Accessibility | Restricted | Online platform |
| Currency Options | GBP only | Multi-currency |
| Fees | Often 1.5%+ | Typically under 1% |
| Portability | Complex | Global, flexible |
This flexibility is particularly valuable for Americans living abroad or planning future moves.
Which SIPP Has the Lowest Fees?
Fee structures vary, but international SIPP platforms designed for US residents are generally far more competitive than legacy pension schemes. Look for providers that:
- Publish all fees clearly on their website
- Offer flat-rate annual administration fees
- Provide low-cost passive fund options (like S&P 500 ETFs)
- Avoid unnecessary exit penalties
Harrison Brook USA works with regulated SIPP providers that specialize in cost-efficient, transparent international pensions.
How Do You Avoid the UK 60% Tax Trap?
Many high earners risk entering the so-called “60 percent tax trap” when income exceeds £100,000, as the personal allowance tapers. While this primarily affects UK residents, cross-border clients can mitigate exposure by managing pension contributions strategically. An adviser can help plan contributions or withdrawals to remain within optimal thresholds.
Can You Hold Both a UK and US Pension?
Yes. It is entirely possible to hold both UK and US retirement accounts, such as a SIPP and an IRA or 401(k). The key is understanding how withdrawals are taxed in each system and how to report them under IRS rules. With professional advice, you can structure your retirement income efficiently across both jurisdictions.
The Benefits of an International SIPP for Americans
An International SIPP is specifically designed for clients living outside the UK. Key benefits include:
- Ability to consolidate multiple UK pensions into one account
- Freedom to invest globally, including in USD funds
- Full online management and reporting
- Lower costs than most legacy UK pensions
- Regulatory protection under UK Financial Conduct Authority (FCA) rules
For US residents, this structure provides global flexibility without losing UK tax advantages.
FAQs – New Low Cost SIPP for USA and US Residents
Can I get my UK pension if I live in the USA?
Yes. You can retain and access your UK pension while living in the US. Transferring it to an International SIPP allows easier management and tax efficiency.
Is a SIPP taxable in the USA?
Withdrawals are typically taxable under US income tax rules. Pension growth inside the plan remains tax-deferred.
Can I contribute to my SIPP while living in the US?
You can, but UK tax relief applies only if you have relevant UK income. Most expats use their SIPP to hold and manage existing UK pensions rather than make new contributions.
What happens to my SIPP if I move again?
Your SIPP remains portable. You can live anywhere globally and still access and manage your plan online.
Take Control of Your UK Pension Today
If you are a US resident with UK pension savings, an International SIPP offers a powerful, low-cost way to take control of your retirement planning. Harrison Brook USA specializes in helping Americans and dual nationals manage cross-border wealth efficiently, ensuring full compliance with both UK and US regulations.
Speak to a regulated adviser today to explore your options and receive a free initial consultation.
