There are many reasons as to why and individual would consider transferring the their pensions from the UK to a Qualifying Recognized Overseas Pension Scheme (QROPS).
For an individual moving abroad, there could be more options available, with their pension benefits, then if they remained in the UK.
For many the UK pension regulations are too restrictive, however, not all overseas pensions have unlimited options and access to benefits.
In order to understand the options available and the best scheme that they could be obtained, it would be prudent for a UK pension member to seek QROPS advice.
There are almost 1,800 schemes currently registered as QROPS on Her Majesty’s Revenue and Customs (HMRC) website. There are also schemes registered and approved as QROPS that do not appear on the list.
Not all of these schemes are available for everyone to use and many of those available may not be suitable.
Some factors that someone, giving QROPS advice, may have to be consider when selecting an appropriate product are:
• Individual’s plans for retirement;
• Whether the individual has beneficiaries
• Individual’s risk profile;
• Investment options in the scheme;
• The exchange rate on transfer;
• The tax regime in the country that the individual has migrated to;
• Tax rules in the country that the QROPS is based;
• Is the QROPS in a jurisdiction under investigation from HMRC?
• Transfer options from the QROPS. Can funds be transferred out?
