Category

QROPS UK

Jun 13
0
Why Expats Should Consider a QROPS

Why Expats Should Consider a QROPS

By | QROPS UK | No Comments

If like a growing number of Brits, you have moved to another country seeking a new life in a warmer climate with a more relaxed lifestyle you may have a pension that is still in the UK. Many expats are unaware that they could be getting more from their UK pensions by transferring them to a Qualifying Recognised Pension Scheme (QROPS).

Transferring your UK pension to a QROPS can offer many financial and tax advantages for expats, to understand how you could benefit from transferring your UK pension to a QROPS it is advisable to seek advice from an independent financial adviser.

If you are an expat living away from the UK and are looking for independent pension advice, the financial advisers we recommend are experienced in pension planning and regularly work with expat clients to advise them on effective pension strategies and transferring their UK pensions to a QROPS.

Our recommended financial advisers will work with you to determine whether transferring your UK pension to a QROPS could be beneficial and will provide pension advice that is tailored to you and your unique circumstances.

Benefits of transferring your UK pension to a QROPS

The benefits you will receive from transferring your UK pension to a QROPS will vary depending on your unique circumstances. Working with a financial adviser with experience in expat pension advice and in particular QROPS advice will help you determine how you could benefit from transferring your UK pension to a QROPS, but could include:

Larger tax-free lump sum

A QROPS could offer a greater tax-free lump sum, you could take up to 30% tax-free cash with a QROPS compared to 25% from a UK based pension. For example, if you have a pension fund of £200,000 in a QROPS your tax-free lump sum could be £60,000 compared to just £50,000 if your pension remains in the UK.

Exchange rates no longer affect your pension income

If you transfer your UK pension to a QROPS, your pension will be paid in your local currency rather than in Sterling if you leave your pension in the UK. This means that your pension income will no longer be affected by unfavourable exchange rates and will give you more money for your retirement.

Simpler to manage

Consolidating two or more pensions into a single QROPS can make it easier and simpler to manage your pension fund and keep track of its performance. It will also reduce time spent on administration and paperwork. This could also help cut the costs of managing your pension funds, freeing up more income for your retirement.

If you have or are thinking of moving overseas you may be considering your options with regards to your pension and whether a QROPS UK pension transfer is the most effective solution for you.

Seeking advice from a QROPS pension specialist will help you to gain a clearer understanding of the different options available and ensure that the most effective retirement planning strategies are in place for your personal circumstances.

At PensionAdvice.org we can help you find a FCA registered financial adviser for independent QROPS pension advice across the UK. The financial advisers we recommend offer bespoke financial advice on QROPS UK pension transfers for British expats.

May 23
7
What Happens to your Pensions if you Leave the UK?

What Happens to your Pensions if you Leave the UK?

By | QROPS UK | No Comments

If you are planning on relocating abroad and leaving the UK, you are likely to have many questions about what happens to your UK pensions. From whether you can still claim your State Pension to whether you should transfer your UK workplace or private pension to a QROPS.

You will have worked hard to build your pension pots and it is understandable that you will want to get the most out of them in your retirement. If you are planning to move abroad permanently it could be beneficial to transfer your UK pension to a QROPS. Before making any changes to your pension plan it is advisable to seek the advice of a financial adviser that specialises in expat pension advice including UK pension transfers.

Can I Claim my UK State Pension Abroad?

If you leave the UK you will still be eligible to receive your State Pension, providing you have paid at least 10 years of National Insurance Contributions and you will need to have contributed for 30 years to receive a full pension.

However, you will only receive pension increases each year if you live in:

  • the UK for 6 months or longer each year
  • the European Economic Area (EEA)
  • Switzerland
  • a country that has a social security agreement with the UK that allows for increases

If you are planning to leave the UK there are several options available to you for your private and workplace pensions, two of the most common are leaving them where they are in the UK or transferring them to a QROPS.

Leaving your Pension in the UK

If you move abroad and leave your pension in the UK it will be held by your pension provider until you reach pension age and can start to claim it as you would in the UK. If you move abroad your pension would still be paid in Sterling, meaning that exchange rates and currency costs could mean your pension payment could be less than if you were living in the UK.

To give you a better understanding of how leaving your pension in the UK may affect you it is advisable to seek independent financial advice to ensure you are aware of costs, implications, restrictions and benefits of leaving your pension in the UK.

Transfer your UK Pension to a QROPS

If you have private pensions or workplace pensions in the UK you may be able to transfer these to a QROPS providing you meet the conditions. There are many benefits to transferring your UK pension to a QROPS, including:

  • Reduced tax liability
  • Increased flexibility of pension income
  • Greater tax efficiency
  • No currency conversion costs
  • Not affected by exchange rates

It is always recommended to seek independent expat pension advice before transferring your pension to a QROPS from a UK pensions to ensure you understand the solutions available to you, the benefits of each and any exit fees you may occur when entering or exiting.

Find out if a QROPS UK Pension Transfer if Right for you

If you are looking for independent pension advice on whether transferring your UK pension to a QROPS could be beneficial, we can help you find the right pension adviser to help you with all aspects of pension planning and reviewing to ensure you have the most effective and efficient strategies in place.

The financial advisers we recommend are experienced retirement planning, UK pension transfers to QROPS and regularly work with their clients to provide support and guidance on all aspects of pension advice for clients leaving the UK. Our financial advisers will work with you to determine which pension plan is best suited to your circumstances and will provide sound retirement planning advice.

At Pensionadvice.org we can help you find a registered financial adviser for pension advice when leaving the UK, including QROPS. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

Apr 22
4
QROPS and Moving Back to the UK

What Can You Do with Your QROPS if You Move Back to the UK?

By | QROPS UK | No Comments

Seeking warmer climates, cheaper cost of living and a more relaxed lifestyle, when Brits make the decision to relocate to another country, many have the intention of it being a permanent move. However, for some this is not always the case and unforeseen circumstances can see some expats deciding to move back to the UK for career progression, to be closer to family or for health reasons.

Those relocating abroad often transfer their UK pensions to a Qualifying Recognised Overseas Pension Scheme (QROPS) to benefit from reduced tax liability, increased flexibility of pension income and greater tax efficiency. But, when moving back to the UK many are left wondering what they can do with their QROPS.

If you have moved overseas and are thinking of moving back to the UK you may be left wondering what happens to your QROPS in the UK and whether you can transfer your QROPS back to a UK pension scheme.

Seeking advice from an independent financial adviser will help you to gain a clearer understanding of the different options available regarding your pension and QROPS in the UK and will ensure that the most effective retirement planning strategies are in place for your personal circumstances.

While QROPS can be left as they are in the country you have been living and where they were set up, it may not be the most effective solution and transferring your QROPS to a UK based pension scheme may be more beneficial.

Transferring your QROPS in the UK

If you are thinking of transferring your QROPS back to the UK, two of the most effective solutions you may want to consider are transferring your QROPS to a UK workplace pension scheme or to a Self Invested Personal Pension (SIPP). To be eligible for these types of pension scheme you would need to be working when you return to the UK and should seek independent financial advice to ensure you are making the most effective decision for your personal circumstances.

Transferring your QROPS to a SIPP may offer cost efficiencies over leaving your QROP in its country of origin. Typically, QROPS have greater running costs than a SIPP, transferring a QROPS to a SIPP is usually straightforward and involves making an application to the scheme trustees of your QROPS to request permission to make the transfer.

If you are planning to or have already moved back to the UK and are looking for advice on QROPS in the UK, we can help you find the right pension adviser to help you plan for your future and provide a good level of income for your retirement. It is always recommended to seek advice before transferring your QROPS in the UK to ensure you are aware of the benefits of each option and any exit fees that may be applicable.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice including advice on QROPS in the UK and what options are available should you move back to the UK.

At Pensionadvice.org we can help you find a registered financial adviser for QROPS in the UK. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

Apr 19
5
QROPS UK Pension Transfer

Should you Consider a QROPS UK pension Transfer Overseas?

By | QROPS UK | No Comments

British expats or international workers with UK pension rights should consider whether a Qualifying Recognised Overseas Pension Scheme (QROPS) could be beneficial to them. Those with UK pension rights who are living away from the UK permanently or those looking to retire abroad could benefit from transferring their UK pension to a QROPS.

QROPS are often also known as offshore pensions as QROPS providers operate from financial centres outside the UK. Although QROPS in the UK are not bound to the restrictions of UK tax laws, they are recognised by HMRC and should certainly be explored by individuals considering an overseas move.

Transferring your QROPS UK pension

There are many benefits of a QROPS UK pension transfer and an independent financial advisor will be able to advise how these may affect your personal circumstances and which would be most advantageous for you. These benefits include:

  • Reduced tax liability
  • Increased flexibility of pension income
  • Greater tax efficiency

Another benefit to consider with a QROPS UK pension transfer is changes in exchange rates and costs associated with currency conversion. A UK pension will pay you income in sterling whether you are living in the UK or abroad, if exchange rates drop you could lose pension income to unfavourable exchange rates and also be faced with high currency conversion rates. With QROPS, your pension income is paid in the currency of your choice, allowing you to avoid exchange rates and currency conversion rates.

If you have or are thinking of moving overseas you may be considering your options with regards to your pension and whether a QROPS UK pension transfer is the most effective solution for you. Seeking advice from a QROPS pension specialist will help you to gain a clearer understanding of the different options available and ensure that the most effective retirement planning strategies are in place for your personal circumstances.

The financial advisers we recommend are experienced in retirement planning and regularly work with their clients to provide support and guidance on all aspects of pension advice including advice on QROPS UK pension transfers for British expats.

At PensionAdvice.org we can help you find a registered financial adviser specialising in QROPS in the UK. All of the financial advisers we recommend offer bespoke financial advice that is tailored to your unique personal circumstances.

Apr 05
8
SIPPs Vs QROPs in the UK

Which Pension Scheme is Best for You: SIPPs Vs QROPs in the UK

By | QROPS UK | No Comments

There may be several reasons why you are considering transferring your UK pension, whether you are moving back to the UK or simply trying to get the most from your pension fund it is imperative you consider all the options available to you. While there are many benefits to QROPS, depending on your personal circumstances and with the new rules coming into effect this year, it may be beneficial for you to look at other pension schemes.

A QROPS and a SIPP are now more similar than ever, all though there are still some distinct benefits of having a QROPS if you are living overseas. With rules frequently changing what works for you now may not be so favourable in the next couple of years, so it is imperative that you regularly review your arrangements and seek independent financial advice.

As an international financial advisory and pension transfer specialist, the experienced team of advisors at Prism Xpat can support and guide you through all aspects of transferring QROPS in the UK to ensure you have the most appropriate and effective strategies in place.

How Do SIPPs & QROPS Compare?

  QROPS SIPPs
Full name Qualifying Recognised Overseas Pension Scheme Self-invested Personal Pension
Jurisdiction Can be held in a tax advantageous jurisdiction outside the UK UK only
Cost Depends on size of fund Depends on size of fund
What if you move back to the UK? If kept once you moved back to the UK it would be treated as a SIPP No changes
Before retirement Up to 30% pension lump sum free from UK tax from the age of 55 (in some cases earlier). Tax may be due in your country of residence if outside the UK 25% lump sum free from UK tax after 55. Tax may be due in your country of residence if outside the UK
Before age 75 Income drawdown Income based on GAD rate or flexible drawdown
After age 75 No change No change
Income tax If you live outside of the UK, you will not be subject to UK income tax but will be subject to local income tax If you live outside of the UK, you will not be subject to UK income tax but will be subject to local income tax
Inheritance tax Not subject to UK inheritance tax Not subject to UK inheritance tax

It is always recommended to seek independent financial and pension advice before transferring a QROPS in the UK to ensure you understand the solutions available to you, the benefits of each and any exit fees you may occur when exiting your QROPS.

If you are thinking of moving back to the UK and are looking for independent advice on QROPS in the UK, the specialist team at Prism Xpat can advise you on your options and provide a formal recommendation on your optimal course of action. Get in touch to discuss transferring QROPS in the UK.