A few advantages of transferring UK pension funds into QROPS
Posted: Jun 12, 2017
QROPS short for Qualifying Recognized Overseas Pension Scheme is a form of pension which can receive transfers-in from UK pension plans held by British nationals and other British pension holders who live outside the UK. In other words, QROPS is a pension scheme based outside the UK which is recognized by the British authorities as being eligible to receive transfers from registered UK pension funds. Unlike UK-based pension schemes, QROPS fall outside of UK regulations and delivers a bunch of benefits to qualifying expats. Although, they must meet certain requirements of HMRC with QROPS you can enjoy several advantages. Few of them are as follows -
- You can base your pension in a country other than the country you reside
Transferring your UK pension into a QROPS offers you an opportunity to choose whether you base your pension in the jurisdiction you live, or choose a different jurisdiction which is more advantageous. Please note, for those who move between countries providers also offer multi-jurisdictional schemes.
- You can avoid currency exchange rate fluctuations
If you have a UK pension you will receive payments in sterling whereas if you live abroad, these are subject to exchange rate fluctuations which can seriously affect the amount you receive in your local currency. A QROPS can prove to be of great help in such situations.
- Avoid further changes to UK tax and pension legislation
HMRC’s regulations are constantly changing and are difficult to keep track of. Transferring your pension fund into a QROPS will avoid having to deal with these changes.
- You can easily transfer your wealth
Apart from transferring your pension into a QROPS, you can also nominate your beneficiaries. Unlike the UK pensions, where there are restrictions including the age difference between spouses reducing the spouse pension, transferring your wealth to your loved ones is easy, fast and hassle-free.
- Consolidate multiple pensions into a single scheme
You can consolidate two or more different pension funds in the UK into a QROPS to make your investments easier to manage, reduce charges and maximize growth.
- Have records of the additional charges
When you transfer your pension funds into a QROPS, your financial planner will clearly explain you about all the charges that will apply. In QROPS you have a clear idea on where your money is going. Also, while most UK pensions have percentage-based fees, most QROPS operate on a fixed fee basis.
Lastly, with a huge host of benefits, transferring your pension funds into QROPS is the best retirement planning these days. Get in touch today for professional assistance and guidance with QROPS and other financial planning issues.
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