Recent changes to UK
pension legislation means that many expats can benefit
from much greater flexibility at retirement using
Qualifying Recognised Overseas Pension Schemes or
QROPS.
Many UK Expatriates are unaware that changes
to pension rules were brought in by the British
Government to allow greater flexibility in transferring
pensions and to remove some restrictions and
regulations. A particular advantage to such a pension
transfer to an overseas pension scheme can remove the
requirement to purchase an Annuity and may have further
tax advantages. Introducing
Qualifying Recognised Overseas Pension Schemes or
QROPS
Since April 2006, individuals intending to
leave or those who have already left the UK, and who
have left behind private or work pension benefits can
benefit from a QROPS Transfer. HM Revenue & Customs
introduced QROPS Qualifying Recognised Overseas Pension
Schemes which allows a non-UK resident to transfer
their frozen pension outside of the UK and the
restrictive pension rules. This has led to many UK Expats contacting
their advisers for further information on how to improve
their retirement options. Pension transfers under QROPS
are a tax-efficient way to greatly enhance pension
opportunities. Leaving frozen pension in the UK has very
restrictive tax rules for UK expats to consider, and we
at Spectrum IFA have been advising expats across Europe
on QROPS solutions that fit their individual
requirements. In some circumstances however it may not
be appropriate to transfer your pension, each case is
treated on its merits and a full review is
undertaken. Does QROPS apply
to me? If you answer yes to the following questions then
it is worthwhile seeking a full expert appraisal of your
pension benefits:
- Do you intend leaving the UK?
- Have you left the UK and are
working overseas?
- Are you now living overseas
and have pensions still in the UK?
- Would you like to understand
more about QROPS?
What are the key
benefits?
Annuities
Annuities are generally unpopular
because it means that you give up your capital, the
amount that you have built up in your pension, less any
tax-free cash you are allowed, to an annuity provider
who will guarantee you a lifetime income. The annuity
rate however reflects interest rates. Current rates are
extremely low and have meant that many people have
received much smaller pensions than they might have
hoped for. If you were being forced to buy an annuity in
the current climate you would definitely see why they
are
unpopular
This information is only provided as a
guide and, if you need assistance in this area you are
strongly advised to seek the help of a specialist in
this field as each individual case is different. If you
have a question, want to arrange for a free financial
review or just want further information I can be
contacted on +33 (0)325461631, via my website
www.financialexpat.com or via e-mail steven.grover@spectrum-ifa.com
Spectrum IFA Group company TSG Insurance
Services Sarl is registered and licensed in
France.
TSG Insurance Services S.A.R.L.
Siege
Social: 34 Bd des Italiens, 75009 Paris
Societe de
Courtage d'assurances R.C.S. Paris B 447 609 108
(2003B04384)
Numero d'immatriculation 07 025 332
- www.orias.fr | 
