It’s true to say that you only get what you pay for – and if that’s a UK pension, the likely return on investment is likely to be restricted by the state of the country’s economy.
Transferring a UK pension to a QROPS is one way of freeing up the log jam stifling planning for retirement because a QROPS is an international pension with more flexible investment options.
This is supported by the latest message from America’s leading fund manager, David Gross, head of Pimco.
His view is Britain and the G7 countries are must-avoid economies because they are mired in debt, unemployment and cyclical boom and bust.
Instead, he suggests, look to countries with a better attitude to managing debt and less reliant on dodgy assets like Canada, Germany and other emerging economies.
If you are an expat or international worker moving overseas out of the doom and gloom of the UK’s business and financial sectors, then a QROPS is the ideal vehicle for managing this investment in a choice of global economies and commodities.
Why? Because a UK pension is restricted on how much money can be invested and the type of investment the fund is allowed to make. For the most part, investment backed pensions are tied in to how Sterling and the UK stock market performs.
QROPS pensions take this artificial barrier away.
Of course, the UK government wants UK pension money invested in UK plc, so legislates to penalise anyone who stays in the country who wants to look abroad by imposing pension penalties by removing tax reliefs.
While a pension fund is subject to manipulation by a third party, the likelihood is that growth will be impaired in favour of political agendas.
QROPS are certainly regulated, but the restriction of when and how to invest for expats is removed.
A new horizon beckons where the shackles of the Pound and the FTSE are released in favour of genuine choice.
QROPS.net can help anyone with UK pension rights make more of their retirement by taking them through a successful QROPS transfer.
The result is an investor can wrestle control of his or her own financial future from the blinkered UK taxman and government.
