What are the Benefits of QROPS in the UK?
There are many advantages to transferring your pension to a QROPS from a UK pension scheme.
If you are thinking of or are planning to move overseas you may be wondering what is the best solution for your UK pension, and whether transferring your pension to a QROPS from the UK is the best option for you.
As an international financial advisory and pension transfer specialist, our experienced team of advisors at Prism Xpat can support and guide you through all aspects of transferring your pension to a QROPS to ensure you have the most appropriate and effective strategies in place.
Advantages of QROPS
There are many advantages and benefits of transferring your UK pension to a QROPS 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. Some of the greatest benefits include:
Increased Flexibility of Pension Income
When you transfer your UK pension to a QROPS and have been a UK resident for a set period of time, you can benefit from more flexible drawdown rules.
Greater Tax Efficiency
Many countries impose a lower rate of income tax than the UK after allowing for the impact of double tax agreements. Paying a lower rate of tax on your pension could save you a great deal of money, compared to drawing your funds from the UK.
Another factor to consider is exchange rates and costs incurred for currency conversion, if you have a UK pension it will pay your income in sterling regardless of your country or residence. If exchange rates are low, you could lose pension income you rely on to unfavourable exchange rates and you will also be subject to currency conversion costs. With a QROPS, you may be able to have your pension income paid in the currency of your choice.
These are just some of the benefits of QROPS in the UK and it is always recommended to seek independent financial and 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 your QROPS.
If you are thinking of transferring your pension to a QROPS from a UK pension and are looking for independent advice on QROPS in the UK, our specialist team can advise you on your options and provide a formal recommendation on your optimal course of action. Get in touch to discuss QROPS in the UK.