The QROPS Fall Out
By Mike Potts
I don’t like to say “I told you so” but, I told you so (see blog…)
With the most recent changes in the QROPS regulations, we predicted that Australia, New Zealand and Ireland would be most heavily affected.
As of this month, all but one of the 3,500 Australian QROPS schemes have fallen off the list. All of Ireland’s QROPS have become disqualified, as well as most of New Zealand’s QROPS.
The number one transgression that these schemes are guilty of is the age when pensions can be accessed. These three countries allow people to get gain access to their pensions before the age of 55, which is before the approved access age for HMRC QROPS.
How Does That Affect Me?
If someone has already transferred their pension to a QROPS, they should be able to leave their QROPS in those countries. However, no new transfers can go through, going forward.
If you are uncertain about your existing or planned QROPS in Australia, New Zealand or Ireland, please contact us.
South Africa and QROPS
From a South African perspective, Gibraltar has always been the primary destination of choice.
The ability to transfer your funds, if you are a resident in South Africa, is still as strong as it ever was.
What to Remember with QROPS:
How QROPs Can Benefit You:
- You can withdraw up to 30% as a lump sum
- Enjoy greater investment options and flexibility
- You have the freedom to nominate your beneficiaries
- Currency selection of choice
- Tax benefits on income and death
- No life time allowance following transfer
- Choose from safe and well governed jurisdictions
Want help with your pension planning or QROPS? Contact us.