As a QROPS Adviser, I am frequently asked various questions relating to QROPS pensions. This is one of the reasons why we decided to create our own website, over at www.qropsadviser.net. This site has rapidly become one of the foremost and authoritative information sources of QROPS on the internet. We are in the process of compiling a comprehensive FAQ section on that site. But in the meantime, I thought it might be useful to set out below a few of the more frequent FAQs.. If you have any more questions you would like answered, just drop us a line over at the main site, and we'll get straight back to you.
What Are QROPS?
QROPS are Qualifying Recognised Overseas Pension Schemes. They were created in 2006, as a result of the reform of the UK pension system. In essence, they allow someone to transfer their UK pension into an offshore scheme, and take advantage of the numerous benefits on offer.
What is the Difference Between a QROPS and my UK Pension?
With a QROPS, there is much more investment freedom - you can choose your own levels of risk, and are not subject to the strict and onerous regulations which govern UK pensions, and which UK pension trustees must adhere to. In addition, there is no upper limit to how much money can be invested into a QROPS. With a traditional UK pension, ther is a cap of GBP1.8m, above which you are taxed at the top rate, and receive no allowances.
Do I Qualify for a QROPS?
In theory, you qualify for a QROPs if you are between the ages of 18 and 75 years. In addition, you must living outside of the United Kingdom, or intend to live abroad within the next 12 months. You do not need to be a UK citizen to qualify for a QROPS - provided you have a UK pension, you can transfer your pension into a QROPS.
However, notwithstanding these wide criteria, it is not recommended to transfer your pension into a QROPS unless you have a pension pot with a value in excess of GBP50,000. The reason for this is that there are some fixed costs associated with setting up a QROPS, and below this threshold, the expense ration will be too high, and it will negate most of the positive effects of having a QROPS in the first place.
For more information about QROPS transfers, please head over to the leading website for QROPS pensions, where you can contact us, and arrange for a free consultation with one of our experts.
What Are QROPS?
QROPS are Qualifying Recognised Overseas Pension Schemes. They were created in 2006, as a result of the reform of the UK pension system. In essence, they allow someone to transfer their UK pension into an offshore scheme, and take advantage of the numerous benefits on offer.
What is the Difference Between a QROPS and my UK Pension?
With a QROPS, there is much more investment freedom - you can choose your own levels of risk, and are not subject to the strict and onerous regulations which govern UK pensions, and which UK pension trustees must adhere to. In addition, there is no upper limit to how much money can be invested into a QROPS. With a traditional UK pension, ther is a cap of GBP1.8m, above which you are taxed at the top rate, and receive no allowances.
Do I Qualify for a QROPS?
In theory, you qualify for a QROPs if you are between the ages of 18 and 75 years. In addition, you must living outside of the United Kingdom, or intend to live abroad within the next 12 months. You do not need to be a UK citizen to qualify for a QROPS - provided you have a UK pension, you can transfer your pension into a QROPS.
However, notwithstanding these wide criteria, it is not recommended to transfer your pension into a QROPS unless you have a pension pot with a value in excess of GBP50,000. The reason for this is that there are some fixed costs associated with setting up a QROPS, and below this threshold, the expense ration will be too high, and it will negate most of the positive effects of having a QROPS in the first place.
For more information about QROPS transfers, please head over to the leading website for QROPS pensions, where you can contact us, and arrange for a free consultation with one of our experts.
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