QROPS can seem complicated to the majority, but help is at hand and there are many experienced QROPS professionals out there ready to give you the best advice. Providing for your retirement is not something to be taken lightly – And with regards to the new HMRC QROPS, the value of finding an experienced QROPS professional cannot be underestimated.
Are they Qualified?
There are more than three thousand QROPS available worldwide, and growing: Hence, there are more than a few experienced QROPS professionals advertising their services. Before you even begin to discuss the options they are offering ensure they are in fact qualified. This means they should meet the criteria set out by HMRC which in their eyes “qualifies” them as a bona fide provider.
Even if they are officially meeting the criteria another thing to seriously consider is their credibility, which means trust. Without question, ensure they are part of a trusted organisation with a proven track record – Remember, this is your future.
Your Questions Answered
For most people, simply throwing numbers and data around is not enough. If you have questions you want them answered. If you are unsure about something, they should be putting your mind at rest by making you sure. Do not be afraid to ask questions and if they make you feel that way, move on.
There are many different QROPS available and different schemes tend to come with different price tags. Some will charge to move a QROPS from one territory to another for example without charge. Others will not be so flexible. Fees are also charged per year and these can be dramatically different from one organisation to another. Shop around and compare flexibility v cost.
QROPS are only available to UK expatriates. While the UK has specific criteria to ensure the country you transfer to is “qualified” there is a lot more to it than criteria alone. There are various degrees of commitment depending on jurisdiction – economically as well as politically. A qualified advisor will be able to give you expert insight into the stability and regulations with regards to legislative procedures depending on which country you are intending to transfer your pension to. Not all jurisdictions meet HMRC criteria.
As they say, there is nothing surer than death and taxes. Different QROPS will carry different tax concessions. Some countries will apply such severe taxes your QROPS might not be an effective option. If you are considering retiring to the US, without doubt, you are going to need a qualified and experienced QROPS professional to help you deal with the complex nature of the IRS.
With so many variables with regards to lump sum withdrawals/allowances, investment options, taxes on lump sum allowances and retirement age (to name a few) there are many different options available – It is complicated but be assured, there are qualified and experienced QROPS professionals out there that can help.