10 Important Things To Know Before Getting A QROPS
Whether you are on the verge of retiring or you are simply thinking about it, it is important to consider what you need to know about QROPS pensions, which are more formally known as Qualified Recognised Overseas Pension Schemes. This pension scheme is designed for UK pension holders who are planning to retire in a place that is not the UK. If you want to retire abroad, there are a few things that you need to know about this scheme.
It Frees Up Your Investments
QROPS frees you to invest your pension money as you wish. You now have the freedom to invest in global funds that have a better return, and you do not need to buy an annuity. It also makes things much easier on the investment fund in terms of complexity.
You Are Still Subject to HMRC
The HM Royalties and Customs department will be applying the same rules and regulations to someone holding this kind of pension for the first five years that they live abroad. After those five years, the restrictions are lifted.
Do You Qualify?
Qualified applicants for this scheme must be between the ages of 18 and 75, an expat citizen or someone who has the intention of being an expat citizen, and a UK citizen, or anyone who has worked in the UK or in European Union countries.
Which Pensions Qualify for Transfer to This Program?
Money Purchase, Civil Service & Armed Forces, Protected Rights/GMP, Personal Pensions, and Final Salary Pensions are all qualified for transfer to this program.
A Return to the UK Means a Return to HMRC Regulations
If a person holding this pension scheme ends up returning to the UK, their pension finances once again return to the jurisdiction of the HRMC. They are once again subject to the same regulations and the same taxes.
There Are Regular Costs for This Program
Not only does this program require an initial fee, there is also an annual maintenance fee. The precise fees depend on the holder’s situation and their circumstances.
This Program is Flexible
One of the big reasons why people choose this program is because they are flexible. A holder’s portfolio can be adjusted very quickly, the money can be easily withdrawn, and the money and assets involved can be passed in an inheritance without an inheritance tax.
This Program is International
This program stays standardised to whatever neutral offshore jurisdiction you initial chose no matter where you move, and you can pay into it with any currency.
The HRMC Does Not Give Advice
While the HMRC does make this program available; it is not legally allowed to give you advice. While they can affect the change, they cannot and will not provide you with counselling regarding this change to your retirement plans.
You Need to Contact a QROPS Specialist
A QROPS specialist is someone who knows the ins and outs of the system, and who will make sure that you go through it quickly and easily. He or she can effectively switch your retirement funds over to this program in a quick and effective way that will leave you with the most resources at your disposal. This is a good choice for anyone who is not themselves a financial expert.
Allen Rich is an interested author in the world of Offshore pension in order to help expatriates make the most of their investment. For more information about QROPS, please visit – http://www.whichoffshore.com/