QORPS And Its Significance

If you are moving out of the UK and having no plan to come soon or going for short time period then you can transfer your UK pension to QROPS. Now the question is that what are QROPS?  QROPS are basically the Qualifying Recognized Overseas Pension Schemes which have been approved by Her Majesty’ Customs and Revenues to accept the transfer of pension from the UK pension schemes. QROPS pension plan, as a part of new legislation was firstly launched on 6 April 2006 with the objective of simplifying pensions. The pensioners can move towards other countries like Panama, France, Cyprus, and UK’s favorite Spain.

 If you are living in Spain then QROPS Spain can potentially save you thousands of euro, and can make your UK pension go considerably further. Due to this, QROPS in Spain have become most popular.  A UK national moving to Dubai is also eligible for QORPS Dubai and it is a popular destination for British expats. So we can say that QORPS is the offshore pension plan to transfer the UK pension. This process is done under some terms and conditions by the financial service authority and everyone should have to follow them. Similarly offshore sipp is the self-invested personal pension by the holder.

There are different types of pensions andany type of UK registered pension can be transferred to the QROPS, such as protected rights and guaranteed minimum payments GMP and at a time more than one pension can be transferred. QORPS transfer pension from UK to pension transfer overseas to provide the financial benefit to the pensioners.

To find the best pension advice abroad you should speak with an Independent financial adviser and this adviser must be regulated by the financial service authority. They will conduct your interview and ask all the relevant financial information on your objectives, preferences and financial position. Then the Independent financial advisor compares this data with all the jurisdictions and various schemes running QORPS pension schemes and then discovers the best possible solution for you. Pension transfer specialists are involved to transfer the pension into QORPS offshore pension transfer.  So it becomes clear that what are QORPS and pension transfer.

To transfer a UK held pension to QROPS provides many financial benefits to the thousands of people who have been leaved or having planning to leave UK in future. Some of these benefits are as follows.

• According to UK pension rules if UK held pension is transferred then it provides an annuity income with the rate of 5-6% of capital at or before the age of 75.

• You can take money in any currency and can invest in any market

• On death of the owner, the entire remaining UK pension is transferred to the next of the kin.

• QROPS schemes can provide the much better tax efficiency on the UK pension income. They have to pay the lower tax on the income of the pension.

• Having the benefit of 0% inheritance tax.

• 25% to 30% of the UK pension pot is exempt from the tax.

• Asset protection

• nlimited fund size

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/