Vin,
If you transferred it to a Qualifying Recognised Overseas Pension Scheme (QROPS), although you are still not able to draw on it until 55 years old, you are presented with certain advantages. For instance, you do have the potential (under certain circumstances) to access the entire benefits tax free. More importantly, if cash flow is an issue, the scheme will have agreed with HMRC to report any payments made from the scheme only for the first 5 "complete and consecutive UK tax years" of the member’s overseas residency. Therafter, things such as GAD rate annual payments to the member (ie; you) tend to drop off the radar..
Bear in mind that following the latest emergency budget and the announcements on the change from RPI to CPI, some final salary pension schemes have temporarily suspended guaranteed transfer valuations required for pension transfer value analysis for transfers to other UK pension schemes and QROPS. If yours is a Free Standing AVC linked to AFPS, then you need to check if the moratorium (still) applies. Here is a list of providers who might be of help. Although Do Buy isn't specifically mentioned, you can still have a third nation involved.
http://www.hmrc.gov.uk/pensionschemes/qrops.pdf
Since earlier this year, there are also Qualifying Non UK Pension Schemes (QNUPS) which allow ex-pats more freedom if they wish to return home after a period overseas, or if they have already gone into a QROPS. SPVA and HMRC can throw their teddies out of the cot though, if the QROPS is clearly a dodge. Be careful.. the Isle of Man seems intent this week, on bursting onto HMRCs radar screens.
Isle of Man makes Qrops land grab with pension rules - New Model Adviser Edition - Citywire
International Adviser :: Army bans transfers to Wenns QROPS
PN,
I agree that the immediate 40% tax uplift should not be the sole reason to invest income via the pension wrapper. But for the right client and in the right circumstances, it makes the decision the best one almost by default.