Is investing overseas complicated? With the right adviser, getting a Qualifying Recognised Overseas Pension Scheme can be as easy as ABC.
Accessible
Overseas and offshore investments may be more accessible than you think. Some providers may have minimum levels of contributions for their QROPS, but many do not set any such limit.
As long as your pension pot is large enough to justify the fees incurred by the transfer, then you are as welcome as anyone to enjoy the low tax benefits that a QROPS can offer.
Beneficial
Speaking of the benefits of a QROPS, what are they? QROPS are famous for offering members of UK pension schemes the chance to transfer their pension assets overseas without having to pay UK income tax. However, they can also offer greater choice of underlying assets, exemption from inheritance tax and the chance to get your hands on a larger lump sum sooner than you would have done had you left your pension in the UK.
Cheap
How much do you pay in fee for your current financial arrangement? The chances are that this information is not at your fingertips, because as British investors we tend to pay the management fees of a financial product without complaint.
However, with QROPS, competition in the international marketplace to manage your money has become so intense that there are over a thousand schemes crying out to accept your pension assets.
The fees that are payable depend on the service that you need, but some QROPS are available for a couple of hundred pounds per year.
When you are weighing up the cost of pensions, don’t forget to add tax into the equation. With a QROPS, even if the fees you pay are no cheaper than for your UK scheme, you may find that with no UK tax to pay, you are much better off over all.
