Getting a QROPS sounds great. You can get a foreign pension without paying UK income or inheritance tax. But there are some pieces of information that you need to get before you commit yourself to a QROPS.
Your current scheme
Ironically, the first step involved in getting a new QROPS is looking at your current proposals. Some UK private schemes have rules about when transfers can take place. Accordingly, some members may find that a transfer is impossible after they have started to take benefits. On the other hand, it may also be the case that your current scheme is such a good deal that your QROPS adviser does not recommend transferring. However, this is only likely to be the case if you have a gold plated final salary scheme.
For most people with a standard UK private occupational scheme or a SIPP a QROPS is worth looking into.
How much will it cost you?
QROPS are priced in a variety of ways. Some may charge fees for transfers in and out, whereas others may simply charge an annual fee. Given that there are several hundred QROPS available, you may be pleasantly surprised at how competitively they are priced.
The tax consequences
The tax consequence of getting a QROPS that you will be most interesting in is the part where you do not have to pay any UK income tax. However, there may be a tax charge for the country where you live, and for the country where your QROPS is based.
Your QROPS adviser will take these into account when selecting an appropriate QROPS for you.
Other issues
Other issues that you may have to bear in mind may include when you want to get hold of your pension funds, and how you want them to be invested. These issues may depend on how far into your retirement you are. Some QROPS do allow early access to lump sums, but there are also some that are more restrictive.
