A quick guide to QROPS
Welcome to Forvault.com. As you have landed on this page we can presume that you are looking for some further information on the world of taking your UK pension abroad.
What is a Qualifying Recognised Overseas Pension scheme?
A QROPS is a facility for people who have UK retirement funds and are looking to retire away from the UK. It is also suitable for people who are not originally from the UK, but worked there for a number of years accruing retirement benefits.
It goes without saying the new scheme must be approved by the HMRC (a current list of valid schemes can be found on the HMRC website via this link)
Some of the rules that the HMRC are looking for are (This list is not exhaustive so please refer to the HMRC for further information)
• Only schemes established in authorized countries are suitable. These include European Union members, the USA and many others.
• The scheme rules confirm that at least 70% of any transfer will be allocated to give the client an income for the remainder of their life.
• Any funds are not released before the normal retirement age of the client
For many a pension will be one of our largest assets, in some cases even greater than the value of their house, therefore getting the right information and advice is imperative.
Who is eligible?
As mentioned in the previous question anyone who has a UK pension can apply for a QROPS transfer as long as they are looking to retire out of the country. Whether it is your best option or not is something you need to discuss with an expert. Fill in the contact form and we will put you in touch with one of our specialist advisors.
How does it work?
In a nutshell, it is simply a transfer of your current benefits to a different provider. However in reality the process can be a lot more complex. Whilst it may be possible to action all the necessary steps by yourself, it is advisable to seek the services of a QROPS expert. The reason why, is that not only are there a number of jurisdictions that you can have but there are countless funds that you could have your money invested in. Even if you are fairly au fait with investments it is sometimes a lot less of a headache to get someone else to do it.
Once you find an advisor (click here to arrange a no obligation chat with one of ours) then they will have a look at your circumstances to determine what is the best course of action. There are a number of factors in choosing an advisor so do make sure you shop around. That might seem a strange thing to say as we can put you in contact with some of the best in the industry however we want you to be confident that our service is second to none.
Can I sell my pension instead?
The short answer to this is no and it is not possible to take a loan from the fund either
What companies provide the schemes?
There are a large number of different providers ranging from the well-known brands such as Aviva (with Aviva Jersey Personal Pension Plan) to the lesser known Alexander Forbes Island Pension Plan
You can see the current approved list here
What should I do next?
If you think that your pension could be in need of a review, fill in the contact form and one of our advisors will be in touch shortly.