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.