QROPS Frequently Asked Questions

I'm not sure if it is worth transferring my pension?

A good rule of thumb is that if your pension transfer value is worth £100,000 or more then QROPS is worth investigation.  At less than £100,000 then the fees and charges may mean it is not in your financial interests to transfer out.

Why should I move my pension offshore?

Some of the main reasons are,
Concern over stability of your pension provider.  This may include pensions held within companies who are potentialy financially unstable.
Currency - you may wish to receive your pension in a currency other than sterling.
Control - you may wish to have a more hands on approach to your pension management.
To receive untaxed income.  The majority of UK schemes will pay your pension income net of UK tax.
You may wish to take more or less income than your current provider offers.  UK schemes work on GAD which is the same offshore, but with untaxed income you may be able to realise higher incomes offshore. Likewise if you want to protect your capital you can draw down less.

How does it work?

You will need to write to your pension provider and request a transfer to the relevant QROPS trustees.  Once transferred your pension needs to be invested into a suitable vehicle - your financial adviser will be able to recommend a product and an investment strategy suitable for you.

Can I still take the 25% tax free lump sum?

Yes you can.

Can I just take the money out and spend it?

No - QROPS is not designed to "bust" your pension but to gain control in an offshore environment.  Qualifying plans adhere to HMRC rules and regulations. Be wary of schemes which promise otherwise.

For more information contact us at info@meyado.com