International Retirement Plans (IRPs)

Conservo is open solely to non-Guernsey resident members, over 18 years of age and below 75 years of age, and operates as a flexible and tax efficient savings vehicle for internationally mobile individuals seeking a formal offshore savings scheme solution for their retirement whilst working overseas. Conservo is an ideal plan for current or future South African tax residents wishing to consolidate offshore assets and utilise their annual foreign investment allowance to plan for their retirement needs.

There are four fee levels: ‘Basic’, ‘Builder’, ‘Classic’ and ‘Pro’, which are tiered to suit a potential member’s retirement planning objectives and budget. The ‘Basic’, ‘Builder’ and ‘Classic’ options permit investments into standard investments only.

• Conservo Basic – The entry level is from NIL up to a maximum investment value of £25,000.
• Conservo Builder – The entry level is £25,000 up to a maximum investment value is £100,000.
• Conservo Classic – The entry level is £100,000 up to a maximum investment value is £1 million.
• Conservo Pro –­ The entry level is £1 million for standard investments, or any value where non-standard investments are held.

A Conservo is typically funded by either a cash contribution or the transfer of existing assets, in specie, to the retirement plan.

There is no prescribed limit to funding a Conservo. Applicants should bear in mind the limits which are prescribed for the various entry levels, and the pricing that attaches to each, when deciding to establish a Conservo.

No. UK registered pensions and any existing pensions that contain UK tax relieved funds cannot be transferred into a Conservo, which is classed as an international retirement plan.

Conservo is very flexible and accepts most asset and investment account types, including:

• Investment houses (Builder and Classic)
• Investment platforms, offshore insurance bonds, discretionary managed accounts and model portfolios
• Cash, quoted and unquoted shares and fixed interest securities
• Non-standard assets, including commercial and resident property.

Conservo is a member-directed plan, and the member has the power of investment, subject to the investments being within the investment parameters set out by the trustee and in line with Conservo’s Statement of Investment Principles. This means that the assets contributed will be invested by the trustee at the member’s direction, or at the direction of any person the member has appointed and authorised to act on their behalf in this regard.

Yes. At the discretion of the trustee, you may take a loan from your Conservo prior to retirement that is up to 50% of the value of your member’s account. A formal loan agreement will be entered into, and a commercial rate of interest will be payable.

You may draw your benefits when you choose, but the minimum age from which retirement benefits can be taken is age 50 and retirement benefits must be taken prior to age 75.

Retirement benefits can be taken in whatever manner you wish, including payment of the full amount as an ad hoc lump sum distribution, or multiple ad hoc lump sum distributions, regular income drawdown or a combination of both. There is no prescribed limit on drawdown.

There is no requirement to purchase an annuity.

Conservo is not subject to any local Guernsey taxation both in respect of payments to members or beneficiaries and in respect of the underlying investments held. Taxes may however be payable in your country of tax residence.

Typically for a South African tax resident, benefits will initially be paid from the original capital amount contributed into Conservo, after which any capital gains and then income can be distributed.