Is a QROPS transfer suitable for me?
Do you live or work in Saudi Arabia? Wondering how to transfer your UK pensions? QROPS Saudi Arabia? What is QROPS? These questions usually occur in expat mind.
If you have savings in an existing UK pension fund but are working in Saudi Arabia but are considering retiring abroad, you may be wondering just how easy it will be to access these funds. The dreams of a more relaxed lifestyle or the attraction of lower tax could soon fade if you have to work around pension rules more relevant to the UK.
However, if you already live outside the UK, or you’re planning to move overseas shortly for a period of five years or more, you can use a QROPS to transfer your pension arrangements abroad. Nonetheless, if your intention is to retire in the UK a SIPP structure would be more suitable.
What are the benefits of a QROPS?
Compared to general UK pension rules, a QROPS could offer you these advantages (subject to local pension rules):
- It could reduce the income tax payable on the income from your pension
- If you die, your family will be able to inherit your pension benefits free of the lump sum death benefits charge.
- A wider choice of investment opportunities – particularly useful if you want to invest in different assets and currencies depending on where you plan to retire, rather than UK-biased choices. Nevertheless, the pension income payments can be matching the currency you are spending.
- 30% Pension Commencement Lump Sum – through a QROP based structure an increased % percentage is available as your tax-free lump sum payment.
- Ability to minimize the impact of your UK lifetime allowance
- Dual Taxation Agreements (DTA’s) are an option in place between your chosen retirement location and a QROP jurisdiction – which means the investment aspect of your pension will grow free of any taxation and pension withdrawal payments are paid gross.
- QROP Investment Portfolio can be structured for capital growth or income generation – get your capital working harder for you.
- Consolidate various/several pension schemes into one manageable plan for easy management.
- From April 2015, certain QROP jurisdictions (Malta & Guernsey) will allow full flexibility when the UK regulations are effective. In addition, QROP jurisdictions will allow full access to pot value above your tax-free lump sum allowance. This means you are not restricted to benefit provision.
What should you consider before choosing a QROPS?
- Residency considerations – do you expect to return to the UK to retire or for long periods of time in the future? Under those circumstances, a SIPP may be more suitable in this situation.
- Existing pension arrangements – is your current pension plans worth less than £20,000? Are you current pensions defined benefit schemes? Do your existing schemes include benefits such as spouse’s pension, life cover, competitive charges? Our team would assess any pension transfer in a feasibility study, helping you understand what your current scheme offers in details.
Harrison Brook helping you make the best choices:
This is a growing market, and new QROPS Saudi Arabia and providers are appearing regularly. Talk to a financial adviser to make sure you choose the most appropriate jurisdiction and QROPS provider for your needs. Additionally, your QROPS Saudi Arabia will include different kinds of investments. Therefore, it is crucial to speak to a financial adviser to match your investment portfolio to your risk profile and growth expectations.
Why choose Harrison Brook for your QROPS Saudi Arabia?
- We offer discounted QROP fee structures through our online advice system – we pass the savings onto you.
- ‘Trust’ based or ‘Contract’ law QROP structures available to maximize your tax efficiency.
- SIPP advice available if your intention is to return to the UK.
- Globally regulated advisers from a European compliance base.
- Quarterly Review Meetings – Ongoing advice and management.
- No restrictions on client location.
- Access to institutional high rate deposit accounts and structured fixed return products.
- Access to funds handpicked by investment specialists in model portfolios. Not to mention, which we will structure for capital growth, income generation or both.
- View our client testimonials
Harrison Brook is your perfect partner to understand what is best for your current situation:
Harrison Brook is one of very few financial advisory firms which can cater for regulated pension transfer cross-border advice in the UK, Europe and abroad. Allowing us to cater for QROP and SIPP transfers depending on a clients retirement intentions. Simply ‘Get Started‘, speak to an adviser today for free, no obligation, financial analysis, and information tailored to your situation.
The information contained herein is for informational purposes only which is subject to change and should not be relied upon. You should seek advice from a professional adviser before embarking on any financial planning activity.