Perhaps you were unaware of the many benefits to be gained from transferring your pension to a QROPS.
Are you an ex-pat Brit, living perhaps in sunny Spain or Tuscany? Are you at all interested in making your pension go just a bit further? Have you ever heard of the term QROPS?
QROPS is an acronym for Qualifying Recognised Overseas Pension Scheme.
If you would like to research more on QROPS schemes, visit this helpful site.
Well, by transferring your UK pension into a suitable CROPS, you may be quite pleasantly surprised when you learn of previously unexpected and welcome benefits. Different countries have different rules and laws with regard to the taxes to be paid by foreigners who reside within their borders. One thing they do share in common is that they have much lower tax rates than those charged in the UK.
Have your benefits based in different countries
If you meet the HMRC (Her Majesty’s Revenue and Customs) requirements, you have the right to transfer your British pension plan into a QROPS account. Once you have done this, you’ll be eligible for some of the tax advantages offered by each jurisdiction. For those with itchy feet, some QROPS providers can provide services for multi-jurisdictional schemes.
Pension income without the usual UK income tax deduction
Other countries will be charging an income tax that is much lower than you’ll pay in the UK. This means that by transferring your income into a QROPS, your income tax may offer you a greatly reduced reduction in your payable income tax.
By sheltering your money in a QROPS, your funds may continue to grow without your income being subjected to both capital gains and any income taxes.
Your ability to request a lump sum of up to 30%.
The QROPS regulations require you to invest only 70% in your retirement account. This leaves you with as much as 30% of your pension. As you see, this is much different from the 25% offered by a UK personal pension plan.
An easy and certain manner to pass your assets on
By choosing the appropriate QROPS for your pension fund, you’ll be able to have it transferred easily and quickly to those of your choice. As you may know, this is not always the case with UK pension schemes due to many other restrictions such as the different ages of spouses.
You can consolidate multiple pensions
You may have more than one UK pension scheme. A QROPS can consolidate these. That makes it much easier for you to manage your investments while maximising your financial growth and reducing charges.
All charges made readily understandable. Never any surprise charges
As you may be aware, some of the outdated schemes in the UK have been accused of not fully explaining all charges to the investor By choosing a QROPS for the transfer of your pension money, you may be assured of having all charges explained clearly and immediately. This guarantees that you understand exactly what is happening to your money, therefore not only offering welcome financial benefits and security but peace of mind as well.