Consideration Regarding Overseas Pension Schemes

The pension you get after working for so long and serving your company with full devotion is well deserved and helps you to lead a contented life after your retirement. Pension helps you to make your living after retiring from the job when you no longer have an employment to earn money. There are a number of pension schemes available in the market. But it is not always the case that you live in the same country in which you are providing your services. UK has employed a number of people all over the world. People come to UK in search of job and after serving a company in UK they often get back to their home towns. But these people had always been worrying about their pension schemes in UK because the post employment life of a retired person is entirely dependent on the pension schemes he get. Besides giving jobs to so many people around the world UK government has also realized the need of the employees to transfer their UK pension overseas which helps them to get their pension right after migrating from UK.

 UK pension funds can be transferred to an overseas pension scheme only if the pension scheme is recognized or approved by the UK government. Anyone who served in UK and who has the UK pension right can get its UK pension funds transferred to an overseas pension account if he intended to move outside UK. The term used for overseas pension schemes where the UK pension funds are transferred is qualified recognized overseas pension scheme.  One important consideration with respect to qualified recognized overseas pension scheme is that it must be approved by HMRC of UK. Moreover anyone cannot apply for qrops as the person must meet the criteria defined by HMRC e.g a person must be living outside UK for at least 5 years.

When deciding to transfer your investment into a qrops, you must get proper advice from a financial advisor that can help you to get the maximum benefits from the transfer. Before choosing a qualified recognized overseas pension scheme, you must take into consideration that the pension transfer will benefit you with the type of flexibility you need. Before choosing a scheme, you must compare the potential costs and benefits associated with the scheme so that you can get the maximum benefit out of the pension scheme. There are a number of qrops providers that exist throughout the world and provide the services of overseas pension scheme that are based on the jurisdiction of the country in which the qrops is based.

QROPS is an abbreviation of ‘Qualifying Recognised Overseas Pension Scheme’ and as an expatriate you will no doubt have heard or seen this abbreviation fairly often, but what does it really mean? For more information please visit: http://www.whatisqrops.net/