Qrops - Actual Facts And Myths

Many people want to retire overseas and plan on settling down with their lives in a completely new country

. This requires a substantial amount of funds along with a secured financial source. What if the source is a tax free pension fund which can be easily transferred to the country you are planning to reside in permanently? Sounds exciting doesn't it? But its not a farfetched story; its a reality with QROPS pension schemes, which has really made the lives of expats much easier.

Introduced in the year 2006, as an integral part of the pension simplification initiative of the UK government, QROPS, or Qualifying Recognized Overseas Pension Scheme, readily became one of the most popular pension schemes for British nationals migrating to other countries. Sadly there are many people who are not aware of the actual facts related to it and often fall prey to the myths surrounding this great pension scheme. Some of the myths are:

Saver can avail only 30% of the total amount of the pension funds allotted.

The pension providers are mostly recommended by HM revenue and customs and they control the amount payable to the investor.

This particular pension scheme is only restricted to wealthy people of the United Kingdom.

Well none of the above statements are true. In reality QROPS is mainly a pension scheme for British nationals planning on retiring to a foreign country, which is authorized by HM revenue and customs and allows the transfer of pension funds to the country where the expat wishes to live in the future. The biggest benefit of this plan is that it is totally tax free as the UK government does not impose any taxes on the pension funds that are being transferred to the country the investor is planning to settle down in.

Usually the pension plans which fall under QROPS specifically include personal pensions, occupational pensions, self invested personal pensions, and SERPS pension plans. But if you have already bought an annuity over your pension plan then you will not be allowed a pension fund transfer through this particular scheme. If you have more than one pension plan then you can easily transfer all the funds into a single QROPS scheme which will indeed make it much easier to keep all the details related to your future retirement savings. Since some countries impose a higher tax-rate on the pension schemes available, it is advisable, while deciding to settle outside of the UK, to do a little research on the tax benefits on your pension plan given by the country or jurisdiction you are planning to retire to.

by: QROPS

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