The Importance of Accurate Research for QROPS
For people who have earned a living in the United Kingdom and who want to spend their golden years living abroad, there is almost no question about transferring pensions. If you’d like to see your hard-earned money through your retirement years, there are only a handful of options, and staying in the UK when you don’t want to is hardly the most preferable one.
This is why we typically suggest that individuals place their UK pensions into a QROPS. If you want to get your money and avoid hefty tax implications, it really is the best solution.
But while we are experts at our trade where we offer sound financial advice to our clients on all investments, we fully advocate that people conduct thorough research on their own, too.
We pride ourselves on our ability to offer impartial advice and services but we’re aware that there are a number of rogue financial advisors out there who don’t always have their clients’ best interests at heart like we do, so we suggest obtaining as much information as possible before committing to an IFA or an investment decision.
The best way to get to know your way around QROPS is to first understand what it is. It stands for Qualifying Recognised Overseas Pension Scheme and in a nutshell, it’s a way to secure your UK pension without onerous tax implications if you are going to retire outside of the UK.
Second, it’s good to understand the different jurisdictions around the world and know what differentiates them. Know that it is not compulsory to transfer your scheme to the jurisdiction where you are retiring. At Carrick, we recommend Malta and Gibraltar as we feel these hold the most benefits for our clients. Similarly, while the HMRC lists dozens and dozens of QROPS on its site, this list consists of those that have notified the HMRC that they have met the requirements, but not all have been verified. It also serves to ensure that registered pension schemes are aware of legitimate QROPS so that funds are transferred to registered jurisdictions.
Third, research the process involved in moving your retirement funds into a QROPS. Many people mistakenly think that they can go direct to the QROPS without an intermediary, however, only an IFA can facilitate the transfer of funds into a QROPS.
Bearing in mind the above suggestions, we’d like to emphasise that, while there is a lot of information that can be found online, not all of it is up-to-date. QROPS was only established in 2006, and so the flaws and processes are still being ironed out. The nature of QROPS changes frequently so it’s vital to take only the latest information into account.
If you’d like to find out more about transferring your UK pension into a QROPS, contact an expert at Carrick through our contact us page today.