For expats living abroad, QROPS can provide a great investment alternative and the chance to make more from their pensions.
Despite changes in legislation for UK pensions that came into effect in April 2010, hindering expats from accessing their pensions until the age of 55, it is still possible for expatriates to use their pension to enjoy a more financially secure future if you consider the benefits offered by QROPS (Qualifying Recognised Overseas Pension Scheme).
Big changes in life, such as moving abroad, can indicate the need to revise your financial plans and make sure that you're making the most of your new situation.
You've probably been paying into a pension for years, planning for your retirement with the intention of enjoying the freedom that life after work can offer.
QROPS enable expats to benefit from much more flexibility, with a wider range of investment choices that can reap great results.
Once you've been living as a resident in another country for over 5 years and if other criteria apply then you can really take advantage of the benefits a QROPS has to offer.
One way to decide if a QROPS is the right pension fund for you is to look at the potential criteria and benefits and see if they apply to you.
If you're a British expat or any other nationality and you have a UK pension other than a state pension that you've been paying into, you could be eligible to apply for a QROPS - providing that you haven't yet taken an annuity and you are certain that you will not be returning to the UK Some of the main benefits of QROPS include the following points, so read through the list and see if you can answer 'yes' to these questions: · Would you like greater control over your pension funds? · Would you like to pay less in tax? · Would you like your family and loved ones to receive all remaining funds upon your death, without paying huge amounts of inheritance tax? · Would you like to choose not to purchase an annuity? · Would you like to know that your investment choices are flexible? · Would you like to potentially take advantage of exchange rates? As you can see, for expats who intend to live away from the UK, QROPS can offer some fantastic benefits.
The tax and pension laws in the UK see huge losses for bereaved families, who can face anything between 40% and 55% of the deceased's pension fund being swallowed up by tax.
If you're an expat with a QROPS, these UK taxes are side-stepped, meaning that your beneficiaries will inherit the full sum of your leftover pension funds.
In regards to annuities, having the option not to purchase one means that expats can use the investment flexibility offered by QROPS to make their money work more effectively.
Many expats feel that alternative investments will produce a better income than that offered by an annuity.
There are many different jurisdictions that offer QROPS and they all have their own rules depending on the laws of the country - if you choose the right location for your QROPS provider, it may be possible to pay absolutely no tax on your pension income, in contrast to a pension fund held in the UK.
So as you can see, QROPS can offer a whole range of benefits, so if you're an expat living abroad, it's well worth getting some professional advice from a QROPS specialist to find out more about the various schemes available.
You can find more information about the benefits that QROPS can offer to expats by reading this comprehensive QROPS guide, or contact a reputable financial advisory company for further information regarding your specific circumstances.
Despite changes in legislation for UK pensions that came into effect in April 2010, hindering expats from accessing their pensions until the age of 55, it is still possible for expatriates to use their pension to enjoy a more financially secure future if you consider the benefits offered by QROPS (Qualifying Recognised Overseas Pension Scheme).
Big changes in life, such as moving abroad, can indicate the need to revise your financial plans and make sure that you're making the most of your new situation.
You've probably been paying into a pension for years, planning for your retirement with the intention of enjoying the freedom that life after work can offer.
QROPS enable expats to benefit from much more flexibility, with a wider range of investment choices that can reap great results.
Once you've been living as a resident in another country for over 5 years and if other criteria apply then you can really take advantage of the benefits a QROPS has to offer.
One way to decide if a QROPS is the right pension fund for you is to look at the potential criteria and benefits and see if they apply to you.
If you're a British expat or any other nationality and you have a UK pension other than a state pension that you've been paying into, you could be eligible to apply for a QROPS - providing that you haven't yet taken an annuity and you are certain that you will not be returning to the UK Some of the main benefits of QROPS include the following points, so read through the list and see if you can answer 'yes' to these questions: · Would you like greater control over your pension funds? · Would you like to pay less in tax? · Would you like your family and loved ones to receive all remaining funds upon your death, without paying huge amounts of inheritance tax? · Would you like to choose not to purchase an annuity? · Would you like to know that your investment choices are flexible? · Would you like to potentially take advantage of exchange rates? As you can see, for expats who intend to live away from the UK, QROPS can offer some fantastic benefits.
The tax and pension laws in the UK see huge losses for bereaved families, who can face anything between 40% and 55% of the deceased's pension fund being swallowed up by tax.
If you're an expat with a QROPS, these UK taxes are side-stepped, meaning that your beneficiaries will inherit the full sum of your leftover pension funds.
In regards to annuities, having the option not to purchase one means that expats can use the investment flexibility offered by QROPS to make their money work more effectively.
Many expats feel that alternative investments will produce a better income than that offered by an annuity.
There are many different jurisdictions that offer QROPS and they all have their own rules depending on the laws of the country - if you choose the right location for your QROPS provider, it may be possible to pay absolutely no tax on your pension income, in contrast to a pension fund held in the UK.
So as you can see, QROPS can offer a whole range of benefits, so if you're an expat living abroad, it's well worth getting some professional advice from a QROPS specialist to find out more about the various schemes available.
You can find more information about the benefits that QROPS can offer to expats by reading this comprehensive QROPS guide, or contact a reputable financial advisory company for further information regarding your specific circumstances.
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