Like most financial products, there is no “one size fits all” scheme for QROPS. As long as your QROPS adviser has plenty of information about you, they should be able to find a scheme that meets your individual needs.
What is your current scheme like?
If you are a member of a final salary pension scheme then you can look forward to a planning your retirement with some certainty. After all, you know exactly how much you will receive from your pension benefits, and when you can take them. In that case, trying to match this deal elsewhere could be difficult, and your QROPS adviser may tell you to stick with what you already have.
On the other hand, for most people who are members of private UK defined contribution pension schemes and SIPPS, QROPS are worth investigating because they offer products of a similar level of investment risk.
What are you going to do with your retirement?
Do you plan to leave your money to grow for a while, or would you like to get your hands on your pension assets as soon as possible? The beauty of looking for a QROPS is that you can shop around not only for the product that suits you, but for the regulatory regime that allows you to do what you need with your own money.
For instance, if you need to access a larger than average lump sum early on in your retirement to purchase your new home abroad, you may wish to consider a QROPS from New Zealand. Alternatively, if you have your heart set on investing in an unusual asset class, have you considered a Guernsey QROPS?
A tailor made QROPS
Most of the QROPS on offer are “off the peg” products, and these are the ones that may be the most competitively priced. However, it is possible to build a QROPS around your needs. Speak to your QROPS adviser to see if this is an option for you.
