International Pension Plan | International Pension Plan
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international pension planning

THE NEED

Globally mobile employees require an international pension plan (IPP), which is recognised as a genuine pension by Revenue Authorities world-wide, provides tax freedom on investment growth, at retirement and on death; and is available to anyone of any nationality, wherever they work, whatever their occupation.

THE PROBLEM

The more commonly available IPPs are little more than regular premium savings plans, as they are not tax-recognised to be Occupational Retirement Schemes by Revenue Authorities and Double Taxation Agreements globally, which exposes them to Capital Gains Tax, Income Tax and Inheritance Tax.

THE SOLUTION

The International Pension Plan from Legacy Trust Company Limited is a globally accessible, internationally tax-recognised pension, available to anyone, living anywhere, working in any occupation. The IPP offers income tax freedom at retirement for residents of 27 countries, with no inheritance tax anywhere.

What is the IPP?

The International Pension Plan is based on the Legacy Trust Company Limited’s Legacy Superannuation Trust, which is a registered, tax-recognised, non-vested Occupational Retirement Scheme domiciled in Hong Kong.
The Trust is established for the purpose of providing globally-mobile employees with income in retirement.

Tax Freedoms

Hong Kong has agreed Double Taxation Agreements (DTAs) with 35 countries, 27 of these treaties assign Hong Kong the sole right to tax pension income arising in Hong Kong. As Hong Kong does not apply Capital Gains Tax, Income Tax, or Estate Duty to its pensions the IPP provides tax freedom for residents of those countries.

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The 27 countries below have agreed not to tax Hong Kong pension payments made to their residents:

Austria

Belgium

Brunei

Canada

China

Czech Republic

France

Guernsey

Hungary

Indonesia

Ireland

Jersey

Korea

Kuwait

Liechtenstein

Luxembourg

Malaysia

Malta

Mexico

Netherlands

Qatar

South Africa

Switzerland

Thailand

United Arab Emirates

United Kingdom

Vietnam

Why Hong Kong?

Hong Kong is the world’s third largest Financial Centre (Global Financial Centre Index – GFCI) after London and New York, is one of the most stable, and is the most competitive (Swiss International Institute for Management Development – IMD).
Hong Kong’s generous Occupational Retirement Schemes Ordinance (ORSO) tax regime, favourable Double Taxation Agreements, and perpetual trust laws, provide for globally-accessible, internationally tax-recognised pensions.
This means that the IPP is available to anyone of any nationality, wherever you currently reside for tax purposes—now or in the future, and working in any occupation.

What’s the Minimum Contribution?

USD500 per contribution (or Sterling/Euro equivalent).
There is no Contract Term, so you may stop and start contributions whenever you like without penalties.
Contributions may be monthly, quarterly, semi-annually, or annually.
You may make additional lump sum contributions (min USD500) at any time and without limit.
Regular contributions are deducted from your debit card or credit card.

What Does It Cost?

One-time IPP Trust Account Establishment Fee

USD250

Year 1 up-front Trust Administration Fee

USD250

Year 2 onward Trust Administration Fee (of the Assets Under Administration—whichever the higher)

USD250 or 1%

Annual Investment Platform Fee (of the Assets Under Management)

0.6%

IPP Sales Charge

1% of contributions

investment funds

Member contributions to the IPP are invested in a choice of five risk-rated international Discretionary Fund Management (DFM) portfolio’s, selected according to your risk tolerance and currency preference (USD/GBP/EUR).

Cautious

Apollo Athena IV

Factsheet
Conservative

Apollo Athena VI

Factsheet
Balanced

Apollo Athena VII

Factsheet
Growth

Apollo Athena VIII

Factsheet
Adventurous

Apollo Athena X

Factsheet

pension savings calculator

Creating a realistic estimate of where you stand today can help you get where you want to be tomorrow. Use these results as a starting point and work with your local financial advisor to determine if you’re on track. Together, you can to estimate how much you’ll need and find practical ways to reach your retirement goals.

Total$

Important Information:

This calculator is for illustrative purposes only and does not reflect the performance of any specific investment. It does not take into effect the deduction of any fees or taxes. There is no guarantee that the rate of return selected can actually be achieved. Investments offering the potential for higher rates of return also involve a higher degree of risk.

*Source: LIMRA, Across Generations: Retirement Savings, Attitudes and Engagement, 2015

Sign up to the International Pension Plan