Sipp v QROPS

Many people are confused when it comes to pension products. The main confusion is generated from the shear amount of variations that a pension can follow.

Now, times that confusion by 500%, and you get somewhere near the scale of misunderstanding that comes with self invested pensions and Qrops.

To make things simple, we have compiled a side by side list, comparing Sipps against Qrops.

QROPS & SIPPS AT A GLANCE

	SIPPS	QROPS
TAX FREE LUMP SUM	25%	30%
INVESTMENT FLEXIBILITY	Full UK pension restrictions	Greater flexibility
PENSION INCOME TAX	At source	Gross with declaration where resident
PENSION OPTIONS	Pre 75 - unsecured pension	Income drawdown (GAD tables)
	Post 75 - alternatively secured pension	Income drawdown (GAD tables)
	Insurance annuity	Actuarially certified
DEATH PRE-RETIREMENT	0% tax charge	0% tax charge
DEATH POST-RETIREMENT-PRE AGE 75	35% tax charge	0% tax charge
DEATH POST-RETIREMENT-POST AGE 75	Up to 82% tax charge	0% tax charge
SUBJECT TO LIFETIME ALLOWANCE	Yes	No