If you have a UK pension and decide you want to retire abroad, a QROPS (Qualifying Overseas Pension Scheme) enables you to transfer and consolidate your UK pension. It is a type of pension that is managed by trustees: you choose the investments you want to make, and the trustees make the investments on your behalf. A QROPS offers several advantages, including protection against UK inheritance tax.
Find out whether you are eligible to apply for a QROPS and how to qualify for a QROPS, and read on to find out more about the process of setting one up.
The QROPS pension transfer process
Although the overseas pension transfer process is rather simple, by law, it must be managed by a qualified and authorised financial adviser.
The overseas scheme you transfer your UK pension savings to needs to be a ‘recognised overseas pension scheme’; otherwise, your UK pension scheme could refuse the transfer, or you would have to pay a minimum of 40% tax on it. Harrison Brook’s specialist financial advisers can help you to navigate the entire process.
Firstly, you need to write a letter of authority so that the adviser can review any pension schemes you have to your name. You may also be asked to provide your QROPS pension transfer paperwork at this stage.
The adviser will then produce a personalised report based on their review of the pension. This will include important information such as your objectives, and the different options available to you.
Your adviser will make sure you have a full understanding of each option, and then recommend which one they believe would best suit you, based on your circumstances and requirements.
You must note that your QROPS will be subject to annual charges, which are usually taken from the pension itself. Your expert financial adviser from Harrison Brook will outline everything you need to know relating to annual QROPS charges and your QROPS pension transfer.
Other important information
You should note that not all QROPS are the same.
Each type is subject to different fees and charges, and has its own conditions relating to how much can be taken as income, how that income will be taxed, and when you are able to access the tax-free lump sum. Also, you can still contribute to your QROPS, whether on a regular or ad-hoc basis, provided you are not already receiving an income from the scheme.
Expat financial advice from Harrison Brook’s financial experts
If you’re considering retiring overseas and want to explore your pension options, Harrison Brook’s specialists can offer you all of the expat financial advice you need. Our experienced advisers will help you to find the QROPS pension scheme that is right for you, offering a transparent, no obligation service that tells you everything you need to know. To seek financial advice on QROPS, or to find out more information about the services we offer, call Harrison Brook now.