QROPS – Compare Overseas Pension Transfer Providers


In April 2006, it was announced that British expatriates could move their pension benefits to a Qualifying Recognised Overseas Pension Scheme (QROPS) with the Revenue’s approval. If structured in this way, transferring pension benefits via a QROPS can have huge benefits: The individual can take 25% (30% in some jurisdictions) of their pension’s value as a tax-free lump sum at any time after the age of 50 (this increases to 55 for any transfers which have not been completed by April 2010).

Beware, there are some companies offering to unlock 100% of the cash of existing UK Pensions. These schemes are not approved By HMRC and there are real dangers for your wealth, not only might you end up with a scheme that gets banned, you could end up with no investment return and even a fine from HMRC!

With QROPS the individual is free to do whatever they want with the released benefits. Some may choose to hold the money in a high interest offshore bank account which returns more than an annuity and is tax-free whilst they are resident outside Europe.

Others many choose to invest in an offshore bond or capital protected offshore investment with the view of getting even better returns. Here they have access to an entire universe of funds that cover all asset classes and market sectors; this alone ensures the returns have every chance of outperforming UK based pensions. Others may use the money to purchase a property with the rental income returning more than an annuity would and, hopefully there would be some capital gain as a bonus.

Whatever your circumstances whether you are retired or still working it is important to seek all the information you need to make an informed decision since transferring UK pensions is not suitable for all. For this reason people should ensure they use qualified advisers that can provide sound advice and have access to both approved QROPS and SIPPS schemes.

Using QROPS specialists that can free your UK Pension is just the beginning; they can also help by doing the research and finding the investment funds best suited to your circumstances.

Once you have found a suitable pension adviser the actual transfer process can begin. These pension specialists will guide you through all the correct procedures, once they have obtained the actual transfer values the pension team will vet your existing pensions to see if it is appropriate to transfer them or not. Assuming there is a benefit in transferring to a new scheme they will then ensure a smooth transfer of your hard earned pensions.

Offshore pensions can be highly beneficial to expatriates and anyone contemplating living or retiring abroad.

QROPS Main benefits include:

  • Never purchase a UK annuity.
  • Take a 25% tax free cash sum
  • Leave all unused pension to your beneficiaries
  • Choice of investment funds located offshore
  • Take income tax free or massively reduced rates of tax
  • Applies to any expat or anyone with a UK pension -release yours now.

Don’t move forward with any company that can’t provide you with 100% HMRC approved schemes, make sure their advisers are experts within their field and make sure they are independent of any institution.

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