QROPS Pension Schemes
For many people reaching retirement age, the prospect of living out their golden years in Britain is seemingly less and less appealing. This is why each year the number of pensioners retiring abroad is on the increase. Figures from the Office for National Statistics indicate that of the 200,000 that left the UK for good in 2008, the majority were retirees.
The warmer, more temperate weather is often the biggest draw for expat pensioners to countries such as Cyprus, Panama, France and the UK´s favourite Spain, but there are a considerable number of other factors that help to sweeten the deal. With crime rates perceived to be soaring in the UK and daily coverage of more menacing incidents, the promise of minimal crime levels is attractive. Combine this with better health services, a more relaxed way of life, strong expat communities and exotic, beautiful landscapes, the lure is irresistible.
When making the move though it is hard to know what is the best thing to do with regards to your finances, in particular your pension, and whether it is advisable to transfer it with you. This is where a QROPS adviser can help.
In 2006, the UK government brought in a pension simplification system which allowed non-residents who have resided outside the UK for 5 complete tax years to be able to reap the benefits of moving funds to a pension scheme within another jurisdiction, provided it had HMRC approval and met with all HMRC QROPS rules. Possible advantages include:
- No obligation to buy annuity aged 75
- 0% or low income tax rate
- 0% inheritance tax
- Investment flexibility
- Asset protection
- 30% Tax free lump Sum
- Unlimited fund size
For further information on QROPS transfers and for a qualified QROPS adviser to contact you, simply fill in your details in the contact a QROPS adviser page to receive free QROPS advice.
