http://qropsguidance.com/ People who have lived outside of the UK for a period of more than five years can greatly benefit from a transfer to a Qualified Recognised Overseas Pension Scheme. This program allows expats more flexibility in how and when they receive their UK pension. An experienced transition expert can make a QROPS pension transfer work for an individual’s benefit in a number of ways.
With traditional pensions in the UK, people can be rather limited in what they are allowed to invest their pension savings in. In general, they can only invest domestically, and even then people are restricted in what they are able to put their money into.
When individuals choose a QROPS, they gain the ability to put their retirement savings into any sort of investment they would like. They are also able to take advantage of investing their money anywhere in the world. With this, individuals are able to diversify where they are putting their money in order to gain stability and get the maximum return when they retire.
The UK taxes residents much more than many other countries do. When expats take advantage of a QROPS, they pay the income tax that is applicable in the jurisdiction where they are living. This could mean a substantial increase in the income that they receive every year.
In addition, individuals only need to keep 70 percent of their pension fund to be used as income during retirement when they switch to a QROPS. With this, they are able to take up to 30 percent out as a lump sum at the time of conversion if they choose to do so. Depending on where they keep their pension funds, they may also be exempt from capital gains tax
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