Pull out of the UK pension mire with a QROPS

Pensions are in a mess and the rules and regulations are so complex, most ordinary investors without a squad of advisors don’t know which way to turn.

For those living and retiring in the UK, choices are limited - most advisors would suggest stashing cash in an ISA every year up to the limit and then going for some sort of pension scheme.

This is OK if you are staying in the UK, but expats and international workers lose all the tax benefits of these retirement investments.

The alternative is transferring pension funds offshore in to a scheme called a QROPS (Qualifying Recognised Overseas Pension Scheme.).

Someone with UK pension rights retiring abroad pick up a lot more tax benefits and investment advantages from a QROPS rather than a UK pension.

A QROPS is not necessarily the right investment for everyone overseas with UK pension rights.

Retirement planning across borders is even more complicated than retirement planning in the UK and the pool of knowledgeable and competent advisors shrinks considerably.

QROPS planning has to take in to account tax and other regulations in three places - the UK, the country where the QROPS is based and the country where the expat or international worker lives.

Considering the current state of the UK economy, the return on investments and annuities and the pensions black hole, if you are considering retiring abroad then adding a QROPS to your action list is a ‘must do’.

Not only does retirement planning overseas have to take in to account investment return, but also currency exchange fluctuation and inheritance tax planning.

Many QROPS investors find they are significantly financially better off than moving abroad with a UK pension.

Issues that limit a UK pension and cause avoidance issues with companies plugging tax saving schemes like having to invest in an annuity and not being able to pass a pension fund on to family or loved ones are eliminated.

Currency and investment flexibility also covers of investing only in Sterling as a QROPS pays out gross benefits in many major currencies.