We have received a number of requests for assistance from people concerned about QROPS and whether they are right for them or not. The number of enquiries has gone up in recent weeks as the amount of media focus on these potentially amazing schemes has increased. However, what the media doesn’t tend to focus on is the complexity of QROPS.
We always, always say to anyone who contacts us and mentions qualifying recognised overseas pension schemes, (QROPS), that they have to have personalised and qualified, experienced advice…and we’re basically going to say the same thing to you in this report!
We’re going to look at why you have to have personal advice when it comes to QROPS, and how you can go about finding, understanding, trusting and following the advice you’re given.
By now most people know that QROPS are a form of ‘offshore’ pension scheme that can be ideal for those who’re going to be living abroad in retirement perhaps, for those who are overseas now and who want to save into a suitable scheme that’s well targeted for providing an income in retirement, and for those who plan to become a resident in an overseas jurisdiction for at least five years or more.
There are other people who may be able to benefit – and if in doubt always explore your options with an adviser.
However, there are also people that QROPS are certainly not beneficial for - British pensioners who plan to retire in the UK as full tax paying residents for example, those who have less than £100,000 to transfer in perhaps, those who have their pensions with Guaranteed Annuity Rates (GARs) already which are higher than the returns available today. What’s more, government pensions – other than the National Health Service scheme - British State pensions and final salary or defined benefit pensions that are already being paid out cannot be transferred into QROPS either.
Already therefore the landscape is a little hazy you see, and this is where is starts to get confusing and difficult. People see that they can potentially benefit and then they go in search of advice. Perhaps they come across a financial services company with their own QROPS product ‘for sale’ and the person seeking advice doesn’t realise they are speaking to a tied adviser. I.e., the adviser can only give advice about their product. This can make it hard for the person seeking advice to determine whether the concept of QROPS is right for their own personal circumstances.
The key is finding personalised, individual, experienced, qualified and independent advice. And here’s why: -
Personalised – you are unique and so are your financial circumstances, therefore any advice given has to be right for you.
Individual – as above, where you live now, where you will be living, your goals and plans, aspirations and tax status are all individualised to you – therefore these all have to be taken into account when someone is advising you.
Experienced – the person you speak to needs to know everything there is to know about financial planning – a QROPS is not a stand alone solution to someone’s money management needs. QROPS are great for retirement, but you need money management throughout your financial life – therefore you need someone experienced who can see and appreciate the bigger picture and make sure QROPS fit in to that bigger picture appropriately.
Qualified – QROPS are complex and as we all know, the world has seen pension mis-selling scandals before. No one is about to allow QROPS to be mis-sold; therefore to advise about them you have to be qualified to do so…
Independent – and finally there are hundreds of financial services companies out there with QROPS solutions ‘for sale’ – they are all different and have differing features, benefits, risks and costs. You have to be sure you find the right one for you! An independent adviser can look at ALL the QROPS available and get the right one for you.
If you want or need advice that is tailored to your specific circumstances, that’s qualified, experienced and independent, use our expatriate financial services contact form and get in touch. If we possibly can, we will assist you to find the right adviser to help you. We are not advisers ourselves and what is written here does not constitute advice, however, over the years we have built up a list of trusted companies who work with our readers, service their requests for information, advice and solutions and services…
You can benefit from their time and their experience – simply get in touch and we will put you in touch!
