If you’ve been looking at the different types of pensions available on the market over the course of the last few years, you’ll probably have come across QROPS pensions. Trying to decide on the best pension product for your needs can be a bit of a minefield – which is why it’s important to get professional advice in order to understand your options. If you think a QROPS could be a beneficial solution for you, then you need to ensure that your financial advisor has specific experience of dealing with this type of pension. Read more here.
Because QROPS transfers can be a little more complicated than an occupational or personal pension, general financial advice may not be sufficient for you to make an informed decision as to whether a QROPS is the right move to make. You wouldn’t let an unqualified person do some kind of surgery on you – and the same theory applies to financial advice. You must make sure that your advisor not only has specific experience of dealing with QROPS transfers, but also that they are regulated by the relevant financial services authority.
QROPS pensions can have some fantastic benefits, but there are certain criteria you will have to meet in order to be able to undertake QROPS transfers. Firstly, if the only pension that you will have access to is a UK state pension, then you will not be able to take advantage of a QROPS. Secondly, you can only transfer your pension into a QROPS if you’re an expat living abroad, or intend to move to another country and stay outside of the UK for at least five years.
If you’re already retired and have put the wheels in motion for your personal pension to start providing you with an income, then you’re out of luck. Unfortunately, QROPS pensions can’t be provided to people who’ve already taken out an annuity on their personal pension scheme.
If you meet these basic criteria, then it’s definitely worth looking into the different QROPS pensions available to you and discussing their benefits with an independent financial advisor. QROPS transfers can provide you with much more flexibility and investment options for your money and you’ll also enjoy much greater tax benefits than you would by staying with a UK pension fund. You’ll also be able to withdraw your money in a variety of different currencies, and you’re not obligated to purchase an annuity either.
This information is just a basic overview of QROPS pensions and their qualifying criteria. Make sure that you conduct plenty of in-depth research and get that all important professional advice before making any long term financial decisions.