A Virgin Money spokesman said: “Customers wanting to access their pension are able to withdraw it as a lump sum, or if they would rather take a regular income they can transfer to a pension provider who does offer that option.
“We do not charge any fees to transfer and we are looking at adding a drawdown option to our proposition in future.”
Mr Kissack added: “I thought things would get better. But I’ve got an Australian pension and that is just excellent in comparison. It’s tax free, the whole thing. You can just do whatever you like”.
He is one of thousands of people who have fallen through the cracks because pension providers refuse to transfer money to accounts overseas.
These expats face a minefield of regulation and advice that leaves some tens of thousands of pounds out of pocket in tax bills.
Brexit made the system even more complicated, triggering some pension providers to change their rules about what they will allow overseas customers to do.
Even those who manage to transfer their cash to their new home country are potentially vulnerable to fraudsters who use pensioner’s ignorance about legal jurisdictions to evade justice.
Advisers say pensioners living abroad don’t know the rules, and expats haven’t even been able to rely on government advice.
‘It’s like having a savings account that you can’t access’
Kelly Mains-Sheard, 62, has two UK pensions with different providers.
She moved her money into an annuity drawdown when she turned 60 – but complex rules means she has spent years trying to access this money.
Mrs Mains-Sheard, who lives in South Africa, says her provider has not been responsive to her attempts to contact them and that her issue has been passed around by customer service.
“It’s just headache after headache,” she said. “My hands are tied, in a way. I can’t seem to get any closer.”
The retiree even received compensation for the delay from one provider, who acknowledged her difficulties but failed, she said, to provide any further support on how she can access her pension.
She is concerned that she will be hit with an enormous tax bill if she takes the money out in one lump sum, but said her main frustration was a lack of available information.
Mrs Mains-Sheard explained: “I worked hard and I had a very successful job and paid into these pensions with the expectation that I would get something out at the end of the day.
“It’s like having a savings account that you can’t access, that you’ve put money into religiously every month,” she said.
Other retirees also said they can’t seem to get the correct advice – even from government sources.
The Money Helper Pension Wise guide, backed by the Department of Work and Pensions (DWP), told pensioners that they could withdraw 25pc of their pension pot tax-free from 55, no matter where they live.
The 38-page “Your Pension: Your Choice” document has long been issued to those about to reach the pension age by providers, emblazoned with the HM Government insignia and containing advice about tax-free withdrawals.
But only those living in the UK and planning to stay here are guaranteed the tax-free lump sum, whereas expats could be hit with bills for up to half of what they withdraw.
Countries including France, Spain and Australia, some of the most popular destinations for the 1.2m British pensioners living abroad, do not recognise the tax-free status.
Following complaints from advisers including Geraint Davies, of Montfort International, the guidance has been changed to make it clearer for expats.
Mr Davies said many expats are not aware of how different their financial situation is from the average retiree.
“The whole problem is that there is no collective noun to describe people who are impacted by these issues,” the adviser explained, “so there is no means of alerting them that they have an issue.
‘They delve into your gold-plated pensions and destroy your life’
Faced with the difficulties involved with gaining access to their money in the UK, some expats move their money abroad, into Qualifying Recognised Overseas Pension Schemes (QROPS).
Many pension providers require expats to have advice in the UK and in the country where they are living before allowing a transfer.
But the world of international financial advice can be risky.
Diane Bentley, 65, a retired nurse who lives in France, where she runs a business with her husband, Peter, 69, claims she lost the equivalent of half of her NHS pension after being badly advised.
Following a cold call from a well known company, an adviser said she would receive better benefits by moving her lucrative final salary NHS pension into investment schemes based in Malta.
