As more and more UK residents decide to retire elsewhere the new QROPS initiated by the UK government has received a lot of attention. There is a lot of information out there, some of it less accurate and less impartial than it should be! Additionally, sometimes too much information can be overwhelming – especially with pensions which generally speaking, have always tended to be complicated to the average tax payer! The basic principles of QROPS are not so complicated. Really! And we are going to prove it right now.
Here’s the absolute basic and vital base points about QROPS you need to know.
Who should be thinking about QROPS?
If you are a UK national with a UK pension already living abroad or intending to live abroad then you should be thinking about QROPS. This pension scheme was setup exactly with you in mind and can provide many tax benefits.
If your UK pension is currently frozen then QROPS can provide a way to get that pension released overseas. While the government will only release your pension to a QROPS approved country, you do not actually need to be resident in that country to be eligible.
What’s the Benefits?
The answer to that in a nutshell, is flexibility. UK pension schemes are quite restricted compared to many other countries. One of the most dominant examples of this being in the UK, you cannot touch your pension until the official retirement age. This is not the case in other countries therefore by transferring you could actually gain access to your pension earlier. Other benefits are also available; it depends on the country and scheme.
Is it complicated to change?
If you try to work it all out on your own then yes, it’s probably going to seem complicated! However, with the help of a qualified QROPS advisor life is made a lot easier. An advisor will access your current situation and pension, then advise you on which QROPS is the most suitable option for you. Remember, you do not need to be living in the country where you transfer your pension. This means the world is your oyster right now… literally!
How do you know you will be better off?
Of course, you want to be sure that if you do transfer your pension out of the UK it will be beneficial. To assess this accurately a QROPS advisor will carry out what they call a Transfer Value Analysis (TVA). This analysis will provide all the facts and figures, showing clearly the comparisons between your pension staying in the UK or being transferred.
QROPS can be very beneficial for many UK pension holders living abroad or planning to do so. You can get more information here at the QROPS help centre. Here they can provide impartial advice from qualified QROPS advisors and ensure you know all the options available to you – and of course the “numbers”. Don’t hesitate anymore – Contact a QROPS advisor and watch your future get brighter!