QROPS Pensions – How Do I Know If This Is Right For Me?
If you have a UK frozen pension and you are now living overseas, you need to take a look at QROPS. To give it its full title a Qualifying recognised overseas pension scheme QROPS transfers have been around since 2006. They were forced on the UK government by one an EU directive.
Intend to live abroad or are already resident abroad and have a UK pension
Transfer that pension to another counties pension scheme providing it is qualified by the UK as being a QROPS approved country
WHERE YOU CAN
Take advantage of those countries “less restricted” rules to pensions. For example, in the UK, you cannot take out your pension until official UK retirement age yet if you transferred to a NZ pension fund, you can take out your pension as a lump sum BEFORE official retirement age…..that is the beauty of QROPS, it offers more flexibility with regard to your pensions than you would have leaving it in a UK scheme.
As you can appreciate it is not something welcomed by the UK Government BUT for once, the EU have given you more control over your pension and how you want to manage it in your present lifetime
The country you transfer it you does not have to be the same country you retire to. So for example you could retire to Spain but transfer your pension to a New Zealand QROPS scheme because they offer the best deal for you as to what you want from your pension .e.g a lump sum.
That’s where we come in. We at the QROPS Help Centre offer suitably qualified QROPS advisors that can look at your present pension, understand your requirements and then recommend a suitably recognised QROPS scheme that does what you want it to do whether that be a scheme in NZ, Gibraltar, Guernsey, Isle Of Man etc
Each country has their own rules on pension funds so the advisor scours the options available and selects the one that is right for you!
If You Are Going To Retire Soon, QROPS Could Be The Answer
They are great if you are about to retire to the USA, Spain, France, wherever or in fact if you already live outside the UK. A QROPS is like a UK pension on steroids. Anything good that a UK pension scheme can do once you leave the UK, a QROPS can do better. In fact you would be mad not to have a QROPS given the extra benefits they give you. Some Additional Features of Transferring to a QROPS:
- Bigger pension Fund.
- No UK tax to pay.
- A larger tax free lump sum.
- No UK death duties to pay.
So, if you have a UK pension and presently live abroad or intend to move abroad, fill out the simple form on the right hand side and we will get back to you with QROPS advisors suitably qualified to provide impartial pension advice and hopefully give you far more benefit with regard to your pension scheme in years to come.
QROPS Pensions – Worth Doing
The answer is undoubtedly YES. A QROPS transfer is worth doing but must be undertaken at a realistic price that will allow your investment to grow at a rate higher than if you had left it in the UK.
This poses another question. How do I know if my QROPS will grow at a rate higher than if I had left my pension in the UK? This is where a thing called a TVA (Transfer Value Analysis) comes in. Any reputable IFA will undertake a TVA as part of the transfer process. This is a projection of what the QROPS could produce as a fund value at your retirement date. It clearly shows in financial terms how the proposed QROPS transfer compares to your existing UK pension scheme. Importantly it uses information supplied by your existing UK pension scheme including its costing structure. This is then directly compared to the proposed QROPS costing structure.
QROPS Pensions – A Summary
QROPS is something you need to look at if you are leaving the UK or you are already living outside the UK. QROPS was specifically constructed for you to hold your pension in and has many benefits. Always contact an IFA who can offer you a TVA. You will then have it in black and white whether a QROPS transfer if right for you. But remember never undertake a QROPS transfer without a TVA.
If you would like to arrange a no obligation assessment of your UK pension including a TVA report contact us by filling in the Contact form on the site and we would be happy to give you a call back and discuss your requirements.
Please see the following webpages for further information on Qrops:
Pension options for new overseas staff