University staff have suffered at the hands of austerity measures more than any other public sector employees. The new pension reforms have hit low-paid university workers extremely hard, while those at the top can still look forward to a decent amount to retire on.
However, there are more changes to come, including an extension on the age of retirement and further benefit reductions which will affect even those at the top end of the pension scale.
As of April 2015, all public sector pensions are set to be locked into the UK forever, as transfers out of the scheme will be banned. The UK public sector pension pot is in disarray, massively in deficit, and there is seemingly no light at the end of the tunnel.
The only way to try to mend the problem is to force pension holders to work and contribute for longer, and to face up to the reality of a dramatic reduction in benefits upon retirement.
For expatriates who hold a pension from their time in higher education employment, there is still the chance to transfer in to a fund which is not in deficit, and which offers extensive benefits compared to the UK.
Benefits of QROPS include:
Choice of jurisdiction
Early retirement option
Up to 25% lump sum tax-free upon retirement
Choice of currency
To find out more about your options speak to one of our advisors today.