Is your UK pension holding you back? This could be the case if you have retired overseas or you are considering doing so. Your pension may also be holding you back if you want to make investments in another country during your retirement. In terms of taxation and investment choice your UK pension will limit you. This is why a QROPS(Qualifying Recognised Overseas Pension Scheme) is the preferred choice for those that retire abroad.
A QROPS is essentially a recognised UK pension arrangement that is based overseas. Thus, if you are a holder of a registered pension scheme in the UK you will be able to transfer your proceeds straight into a QROPS. This is completely legitimate.A QROPS differs from a UK pension scheme because they must be recognised as a pension scheme under the legislation of the country where the scheme resides. These rules can of course be different to the rules in place in the UK.
What are the benefits of QROPS?
Now you know all the reasons why a QROPS is beneficial for expats. It is vital to be aware of the fact that the proposed flexible pension rules in the UK may impact QROPS. It could lead to a change in the QROPS legislation that currently requires a minimum of 70 per cent of the fund to be used to provide income for life. New rules may lower this amount to ensure that the gap between the advantages of a QROPS over a UK registered pension scheme is still substantial.
If you require further guidance on QROPS or require a UK pension transfer, Taylor Brunswick Group can assist.
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