Removing retirement uncertainty with a QROPS

Approaching retirement and the life changes that come with it are big issues for many people to cope with - without the current added uncertainty in the pensions world.

Many people who have worked hard and contributed to company pensions all their lives are unsure of how much money they will have to live on.

Add to that the debate about how retirement ages may change in the future and the concept of a rosy retirement is not quite what most people have worked towards.

One way to sidestep all this pension grief if you are considering moving abroad permanently is transferring your pension to a QROPS. A QROPS is a specialised financial product that has many tax advantages for retirees living overseas who have UK pension rights.

If you have already purchased an annuity or are drawing down from an employer’s final salary scheme, then the QROPS door is closed.

For everyone else, the door is open, including those who are taking benefits from a pension as a drawdown or unsecured pension.

Consolidating all your UK pension funds in to a QROPS allows the investor to put their retirement savings outside the UK pension systems, immediately removing the uncertainty surrounding your pension in this country.

Your UK state pension has to stay outside the scheme, but you can move your other funds offshore to a more tax friendly environment and have no restriction where you live outside the UK - so your pension can be based in a good investment jurisdiction while you can live where you please.

Rather than ask your pension scheme provider about a QROPS transfer, approach a regulated and experienced independent financial advisor as many small scheme trustees and administrators have given wrong advice to pension holders in the past about their ability to transfer to a QROPS.

A QROPS is a highly specialist financial product and to protect your money and your retirement plans, always make sure the advisor can give ‘whole of the market’ advice and has a track-record in successfully completing QROPS transfers.

Another QROPS bonus is investments and payments inside a QROPS can be in many currencies, so your living standards overseas are not dependent on the fluctuation of the Pound against other major currencies that removes another uncertainty for many who want to retire abroad but have a tight budget.