QROPS and Pensions: Advice for Expats
QROPS or Qualifying Recognized Overseas Pension Scheme can be a benefit for expats as it can allow for valuable tax benefits. It is a type of pension based outside of the UK and it is recognized as being eligible to receive pension transfers from registered UK pension funds. You can work with an advisor to find out which countries are recommended to transfer to, to protect your investment in the same way, or better than in the UK.
Who should consider using QROPS? Anyone planning on retiring overseas. The amount of tax you pay will be determined by the specific country, so it’s important to make the right decision in terms of where to take your retirement funds to.
Benefitting from QROPS
One of the benefits of QROPS is that you may be able to pay less tax on income from your pension, which will also eliminate the need, in some instances, for you to invest your pension in an annuity which will also die with the purchaser; policy holders can pass their investment on to friends or family, tax free. You may also receive important tax relief while you are saving towards your pension in the UK, without the need to pay higher taxes.
If you live outside of the UK you can transfer your pension to a QROPS. You may also qualify for other benefits if you have been living in the UK for a number of years. But in order to understand all the benefits of QROPS you should speak to an advisor who can inform you of all the different options you have, and what the benefits are. You should assess whether or not it will be worthwhile for you to make use of QROPS.
Transferring your UK pension into a QROPS does not mean you cannot return to the UK at a later date, however, there are many factors to consider and professional advice should always be sought prior to proceeding.
Carrick specialises in wealth management and can advise you on the benefits of QROPS. Contact us today for help on your financial investments, your retirement options and how to make the most out of your finances.