Have you worked in the UK and have a pension policy? Are you looking for an option to move your pension or transfer or draw it anywhere in the world? If both the answers to these questions are yes, then moving through a QROPS will be the best and safest option. QROPS or Qualifying Recognised Overseas Pension Scheme, is an overseas pension scheme that perfectly meets certain requirements set by HMRC i.e. Her Majesty’s Revenue and Customs.
The QROPS pension scheme is always regarded as the better deal compared to any other pension plans. Besides, it is the primary option for all the people who wants their pension amount to be moved to their native places. More important thing that you need to take note is that the regulation of HMRC’s gets constantly updated, which may pull up a lot of paper works regarding the moving of your money. But, transferring your pension fund into a QROPS will avoid dealing with these changes.
How QROPS can be Beneficial?Apart from investment options, and advantage of tax efficiency, QROPS delivers a whole host of benefits and some of these are mentioned below:
- QROPS gives you a choice to transfer your UK pension in the jurisdiction you live or in a different jurisdiction
- Your pension funds and other contributions can grow without being subjected to any income tax.
- You have greater flexibility to access your pension completely as a lump sum
- Moving your pension amount through QROPS helps you safeguard your pension fund ensuring No Lifetime Allowance would be charged on it.
- The above sentence means that when any member’s benefits are being transferred to a qualifying recognised overseas pension scheme, the pension funds of the member are tested against the available Lifetime Allowance. If it exceeds the bar, then LTA charge of 25% is applied. Besides, if the transfer value is less than the available LTA, then no excess tax would be charged.
- Moving your pension fund through QROPS will ensure that the wealth gets quickly moved to the nominated beneficiary.
Most of the people save more than UK pension over during their working lives and this becomes challenging to keep tabs on it. Moreover, it becomes more confusing during retirement, because you may have income coming from different sources at different times. Now with a QROPS, it has become easier to merge any number of UK pension funds into one. The scheme has paved a way to easily manage the pension plans. By doing so, you can not only enhance the investment choice but also maximize the growth prospects of your wealth.