When you move abroad, any pension plans you have in the UK may not be able to provide the pension solution you expect. Depending on your residency and the specific product you hold, your retirement options will be impacted. Annuities are often a no. Taking flexi drawdown may be unavailable as the remaining 75% cannot be put into a new scheme (often older pension schemes pay out the tax free 25% and then invest the 75% into a new modern scheme). Taking all the money will result in a big tax bill. Get advice on transfer options. Given the volume of pensions that Phoenix Life and Reassure hold, they are common institutions that expat clients come to us to talk about.
Retirees with old schemes in the UK are likely to find that the provider they used previously is now known as Phoenix Life or Reassure.
Consolidation of old pensions into a few large organisations
The largest closed-book life companies in the UK are typically consolidators that specialise in acquiring and managing legacy insurance and pension funds. The most prominent and largest player in this market is Phoenix Group. The main consolidators of closed-book life policies are:
- Phoenix Group: The market leader in the UK and Europe for managing closed life and pension funds. Through strategic acquisitions, including ReAssure in 2019, the group has amassed a massive portfolio of legacy policies. Their brands include Standard Life and ReAssure.
- ReAssure: This company was a major consolidator of closed-book life and pension policies, with over 4 million policies in its portfolio before being acquired by the Phoenix Group. ReAssure is now a subsidiary of Phoenix Group.
Why So Many Old Pensions Ended Up with Phoenix Life
Phoenix Life is not a brand that has sold new pensions to the public in recent decades. Instead, it’s a consolidator — a company that has bought and merged the back-books (old policies) of dozens of other life insurance and pension providers over time.
Phoenix Life specialises in “closed book” pensions
- A closed book means policies that are no longer being sold, but still have customers and ongoing obligations.
- Rather than shutting these down, insurance companies often sell them to a specialist like Phoenix Life that focuses purely on managing and administering them efficiently.
- Phoenix earns income by investing the assets, managing the policies, and meeting the long-term commitments.
The Chain of Ownership — How It Happens
Over the years, the UK pension and insurance market has gone through waves of mergers, takeovers and withdrawals. Phoenix Life (and its parent, Phoenix Group) systematically acquired many of those businesses. Below are some of the well-known names whose policies are now part of Phoenix Life:
| Original Provider | What Happened | Now Managed By |
|---|---|---|
| Albany Life | Merged into Phoenix | Phoenix Life |
| Allchurch Life | Acquired by Britannic, then Phoenix | Phoenix Life |
| Allied Dunbar | Became part of Zurich, some books later sold to Phoenix | Phoenix Life |
| AXA Sun Life | AXA sold parts of its UK life business to Phoenix (2011) | Phoenix Life |
| Britannic Assurance | Merged into Phoenix (2005) | Phoenix Life |
| Colonial Mutual / Winterthur Life | Bought by Abbey Life, later moved to Phoenix | Phoenix Life |
| Cornhill / General Accident / London Life | Through Aviva and others, legacy books ended with Phoenix | Phoenix Life |
| Friends Provident / Friends Life | Acquired by Aviva; older policies managed under Phoenix | Phoenix Life |
| Pearl Assurance | Bought by Phoenix in 2005; one of Phoenix’s oldest lines | Phoenix Life |
| Scottish Mutual / Scottish Provident | Acquired from Royal & Sun Alliance, then to Phoenix | Phoenix Life |
| Sun Alliance / Phoenix Assurance / NPI | Through multiple mergers ended up with Phoenix | Phoenix Life |
(This is not a full list — Phoenix now administers over 13 million policies inherited from more than 60 legacy companies.)
Typical Retirement Options with Phoenix Life (and Similar UK Insurers)
When you reach your pension’s normal retirement age, Phoenix Life (like other UK pension providers) usually offers the following UK-standard retirement choices:
| Option | Description | Typical UK Tax Treatment |
|---|---|---|
| Take up to 25% Tax-Free Cash (Pension Commencement Lump Sum) | You can usually withdraw 25% of your pension pot tax-free. The rest stays invested or used for income. | Tax-free in the UK. |
| Annuity Purchase (Guaranteed Income for Life) | You use the pension to buy a guaranteed lifetime income. You can choose a single or joint annuity, fixed or increasing. | Income is taxable in the UK as pension income. |
| Flexi-Access Drawdown | You keep your funds invested and withdraw what you want, when you want. | Each withdrawal is part taxable, part tax-free (if any lump sum left). |
| Take the Whole Pot as Cash (“UFPLS”) | You cash in your pension in one or more lump sums. | First 25% tax-free, the remainder taxed as income in that year. |
| Leave it Deferred / Do Nothing | You don’t have to take benefits at a specific age (for DC pensions). You can leave it invested until you choose. | No tax until you withdraw. |
What Happens If You’re an Expat
Once you live outside the UK, several of these options can become restricted, tax-inefficient, or unavailable altogether, depending on your country of residence and Phoenix Life’s internal rules.
Here’s how it breaks down:
| Option | Issue for Expats | Notes / Restrictions |
|---|---|---|
| Tax-Free Cash (25%) | 🟠 Not automatically tax-free overseas | UK law allows it tax-free, but your resident country might treat it as fully taxable income. You may lose the “tax-free” benefit. |
| Annuity | 🔴 Usually not available to non-UK residents | Most UK insurers (including Phoenix) will not make an offer of an annuity on an old pension as they do not offer annuities to non-residents. |
| Flexi-Access Drawdown | 🔴 Usually not available to non-UK residents | Most UK insurers (including Phoenix) will not open or convert an old pension into drawdown if you’ve moved abroad — they’ll only allow full encashment or transfer. |
| Whole Pot as Cash (UFPLS) | 🟠 May trigger UK withholding tax | The full payment can be taxed at an emergency rate unless an NT code is in place. Risk of over-taxation and delays reclaiming. |
| Leaving It Where It Is | 🟢 Can be done, but growth limited | You can leave it invested, but options are restricted, often stuck in “with-profits” funds with low flexibility or modern fund access. |
| Transfer to new private pension | 🟢 Simple and suits needs of expat | Transfer your pension into a modern International SIPP (Self-Invested Personal Pension) or a UK platform that accepts non-UK residents. |
Phoenix Life / ReAssure and Retirement Choices for Expats
Once you’re living abroad, providers like Phoenix Life may not allow new drawdown accounts, restrict payments to UK bank accounts, or apply UK tax on income that your new country also taxes. The famous 25% “tax-free” lump sum is not always tax-free overseas, and emergency tax can be deducted from lump-sum withdrawals unless you hold an HMRC No-Tax (NT) code. Most older Phoenix Life contracts were never built for international payments.
For most expats, keeping a legacy Phoenix Life pension can restrict access and create tax inefficiencies. A regulated review and potential transfer to an expat-friendly SIPP often provides greater control, modern investment choice, and better alignment with your tax residence.
Edale can help you assess your current policy and outline the most efficient route to accessing your pension abroad.