QROPS are for anyone with a UK pension who lives, or plans to live, outside the UK on a permanent basis. This includes people who've worked in the UK and built up a UK pension, as well as British expatriates.
You can also transfer pensions from other European jurisdictions into a QROPS, such as Ireland, subject to acceptance by the receiving scheme. QROPS will generally need to have all information provide in English, so if transferring from a non English speaking jurisdiction all documents may need to be translated first before the Trustees will accept a transfer.
You will need to meet the following criteria:
Some final salary schemes should be looked at carefully before transferring into a QROPS. However, presently over 90% of UK final salary pension schemes are now under funded. If your previous employer goes into liquidation and its pension scheme is in deficit, there may not be enough funds to pay you when you retire. Extended life expectancy is putting even greater pressure on final salary (or defined benefit) pensions. Plus, the UK tax regime imposes strict limits on how you can use the money in your pension.
By transferring your pension funds to a QROPS scheme you will take them out of the control of your former employer and the rigorous restrictions imposed on UK pensions.
Each instance varies and you will require the advice of a pension professional. No matter what pension you have, given the large benefits, it is definitely worthwhile to discuss the option of a QROPS Pension Transfer with an authorised adviser.
Please contact us for a free evaluation of your circumstances.
