Ever heard of the term QROPS? It is known as “Qualifying Recognised Overseas Pension Schemes” and it is very important especially for those who have existing UK pensions that want to retire or transfer abroad. The number of British citizens who are living outside the UK is growing even more. This is due to a variety of reasons one of which is the increased tax rates. Another reason is that they are unsatisfied with the current pension scheme that they have or they see better opportunities overseas. If you are one of these people, then you should be aware that a British pension transfer may be your best option to fulfill your dreams abroad without leaving your UK pension behind.
Many UK citizens who went abroad usually neglect their British pensions and end up having no sufficient funds after retirement. Why? It isall because they simply left their pensions frozen and unused. This is not a wise decision at all especially if you are near your retirement age. If you disregard your pension for a long time, chances are, you are going to have a hard time withdrawing when you finally decide to. Do not fall into this trap because in your retirement years, what you need most is your pension fund to keep you financially sustained even without savings or a job. Be wise and start to learn how a British pension transfer works.
First of all, before you leave the country, make sure that you have talked to a transfer specialist to know your options. Never leave your UK pensions frozen. Once you do, things will get very complicated. If you are planning to use your pension funds to buy annuities, it is best if you think again. Keep in mind that a British pension transfer can enable you to continue your pension plan even if you are living or working in another country. And the rules and regulations of the country where you will be transferring will be applied to the pension and not the policies from UK.
These transfers don’t come for free but if you hire a good pension transfer specialist, you will be able to save money on certain miscellaneous fees and taxes that are applicable. Moreover, you will be able to weigh the options you have before making a final decision. Remember that your pension fund is at stake, so be very careful in choosing from the options that you have.