Expats and returning NRIs to India with a UK pension will require UK pension advice and potentially QROPS (Qualifying Recognised Overseas Pension Scheme) advice for several reasons:
1. Transferring UK pension benefits: QROPS is a scheme that allows UK pension holders who have left the UK to transfer their pension benefits to a pension scheme in another country. Expats may need QROPS advice to help them navigate the rules and regulations surrounding the transfer of their UK pension benefits to a QROPS scheme.
2. Avoiding UK tax liabilities: A QROPS scheme can offer several tax advantages for expats. By transferring their UK pension benefits to a QROPS scheme, expats can potentially avoid UK tax liabilities on their pension income.
3. Currency risk management: If an expat is planning to retire overseas, they may want to consider a QROPS scheme to manage currency risks associated with their pension income. A QROPS scheme can allow an expat to receive their pension income in the currency of their country of residence, reducing currency exchange risk.
4. Estate planning: A QROPS scheme can also offer advantages in terms of estate planning. If an expat transfers their UK pension benefits to a QROPS scheme, the benefits may be passed on to their beneficiaries outside the UK, potentially reducing the impact of UK inheritance tax.
Overall, expats may need QROPS advice to understand the potential advantages of transferring their UK pension benefits to a QROPS scheme, navigate the rules and regulations surrounding such transfers, and optimise their retirement income and estate planning. A financial advisor with expertise in QROPS can help expats make informed decisions about their pension benefits and retirement planning.
Ranjit Atwal is from the UK, a qualified adviser based in New Delhi who has been advising expats throughout Asia with their financial planning for the last 25 years.
QROPS & UK pension advice in New Delhi
QORPS & UK pension advice in Mumbai
QROPS & UK pension advice in India
QROPS & UK pension advice in Asia
UK pension transfer
Cross-border pension planning
International pension advice
Retirement planning for expats
Tax-efficient pension income
Currency risk management
Estate planning for expats
Overseas pension transfer rules
Qualifying Recognised Overseas Pension Scheme
UK tax liabilities
Pension income in foreign currency