QROPS is a way for people who live abroad to move their pensions. We asked our local pensions and insurance expert Alan Keane to tell us more:
What is a QROPS?
It is a Qualifying Recognised Overseas Pensions Scheme. I will only ever help you transfer to QROPS providers that are 100% approved by HM Revenue & Customs and will advise you as to the best jurisdiction you should use.
Minimum Pension Transfer value is £20,000 if not taking a Pension Commencement Lump Sum and allowing funds to grow for future use.
OR
£30,000 to allow for 30% of the fund to be withdrawn as a Cash Pension Commencement Lump Sum leaving £21,000 invested to provide an income
Who would benefit?
Anyone with a UK pension scheme who now lives overseas as an expatriate, or is planning to leave the UK.
How can you benefit by a transfer to a QROPS?
Various benefits including:-
- Earlier Retirement in some cases at 50 – Normally 55 in the UK
- More Pension Commencement Lump Sum 30% of the accumulated fund value - Normally only 25% in the UK.
- Higher income potential than in the UK.
- More Investment freedom than a UK pension.
And with the right advice the tax benefits can be immense.
Normally no tax on death benefits as could apply in UK and remaining funds can be passed onto your loved ones
No need to buy an annuity at age 77 or face a tax charge as in the UK
Set Up costs from £300 and Annual Fees from £500 levied by the QROPS provider depending on fund value.
Adviser Fees or Commission also payable, negotiable depending on fund value with discounts applying for larger values
Please call Alan today on (0034) 626 184 724 to discuss your situation without obligation