What is a QROPS?
Quite simply, a QROPS (Qualified Recognised Overseas Pension Scheme) is a system that allows you to pick up your pensions from the UK and transfer them into another jurisdiction.
Prior to 2006, anyone who left the UK would leave their Pensions behind. Basically, this pension would be dormant, as they were no longer being contributed to, and this pension would remain dormant until the member reached their retirement age, usually 65. So the individual would still have to follow UK pension rules even if they have since left the UK.
This all changed in 2006 with the introduction of QROPS, which is an approved HRMC scheme.
Transferring your UK Pensions into a QROPS allows you to take greater control of your money and gives you much greater flexibility and options of an overseas jurisdiction. At the same time, a QROPS gives you the security of a system legally recognised by the HMRC.
Benefits of Transferring to a QROPS
If you’re no longer working or living in the UK, then there are some significant benefits in transferring your UK pension into an International Pension. Here are some of the main advantages:
- Ability to merge all schemes into 1 easily managed scheme
- Transfer can be made from GBP into your local currency
- Wider investment choice and greater control of your money
- Ability to take benefits from age 55
- Ability to take tax free lump sum of 25%, or potentially up to 30%
- Flexible draw down of the remaining pot, take as much or as little as you want, whenever you need it
- Low tax rate on any income withdrawn
- Ability to pass on 100% of any remaining funds to your chosen beneficiary free of tax
If you are currently working abroad or planning on leaving the UK, then you should take a close look at the advantages of QROPS. Transferring your UK pension into QROPS can allow you to reap more of the benefits of your retirement savings.
Download: Benefits of Transferring to a QROPS.
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