QROPS choices
QROPS provide far more flexibility than UK based pension arrangements.
Beneficiaries
Eligible beneficiaries of many forms of UK pension arrangements are restricted to the immediate family of the pension fund holder and other verifiable financial dependents. No other person can benefit under UK law. With QROPS arrangements the pension fund holder is free to nominate any beneficiary.
Flexibility
QROPS do not require that the scheme member purchases an annuity and do not impose the reductions on income to those over 75 that can apply to UK pension rights.
Another important feature of QROPS is that they do not impose the minimum income draw-down requirements that are applied to the holders of certain UK pension arrangements once they reach the age of 75.
With a QROPS, those who have no need of income from their overseas pension arrangement can simply leave the money to grow and eventually pass the entire fund to their nominated beneficiaries, free of tax.
QROPS can also allow for a lump sum of up to 30% to be taken from the pension fund. The current maximum (tax free) lump sum that can be taken from UK based pension arrangements is 25%.
QROPS also permit investment in a much wider range of asset classes than are usually permitted with UK pension rights.
For more information please email us.
QROPS Bureau