People who usually avail of pension scheme transfers are those who would leave their country of origin and move their pensions along with them to their new home, with the possibility of still continuing to contribute to the fund. Sometimes, it could also be because people have found better pension schemes. However, there are times when transferring schemes would turn out to be quite confusing. This is where companies such as the Tim Carroll UK Pensions Transfer LLC would be of great help – to answer your questions and to assist you with your needs.
For those who are unaware, there is a scheme that allows expats to transfer their pensions abroad – the Qualifying Recognized Overseas Pension Scheme or the QROPS. It is an overseas pension scheme that meets certain requirements as set by the HM Revenue and Customs or the HMRC.
Before deciding to transfer pension schemes though, there are things that you should consider or take into account. There are certain do’s and don’ts in transferring your pension schemes.
Do’s
- As much as possible, consider getting a financial adviser – try the Tim Carroll UK Pensions Transfer LLC which provides research into clients’ existing pension plans and makes it a point not to receive or invest any pension assets.
- Ask for a transfer value analysis or a computerized calculation of your funds. This will allow you to compare and contrast the benefits you will receive, including some alternatives.
- Consider different retirement options.
Don’ts
- Don’t switch schemes when you are currently employed. There is no private pension scheme that can match the benefits that your employer can provide, so it’s best to only transfer once you have left your employer.
- Public sector pension schemes such as nurses’ or teachers’ schemes are guaranteed against inflation no matter how much it goes up in the future. It is best not to transfer out of them, even if you already left your employer.
- Don’t transfer out of your current scheme if you have only accumulated a small amount of money.
Transferring your pension would only be worthwhile if a large pot of money is involved, as 5 percent of the pot would be paid out in commission to your adviser and pension provider.