Would you love to spend your retirement on the beach? Have you dreamed of living abroad and exploring a new city? Both of these things are possible when you choose a destination and get your finances in order. In other words, you want to have an overseas pension scheme ready so that you can move abroad without any problems. In particular, it is recommended to have a qualifying recognised overseas pension scheme or QROPS if you are British citizen.
What is a QROPS?
First of all, you are going to need to know exactly what a QROPS is before you arrange your big move abroad. A qualifying recognised overseas pension scheme is just what the name suggests. It is a form of pension scheme that can be earned in one country and it can be transferred and enjoyed in another country. Therefore, it is often the solution for anyone wanting to be an expatriate retiree and a way to transfer your pension legally and safely.
There is a lot of expert advice available out there for anyone that is interested in a QROPS. Do not be afraid to enquire and see what a professional says about this type of pension scheme. With QROPS advice, you can find one that is perfect for your lifestyle.
What are the Benefits of a QROPS?
You may be wondering; are there any advantages to a QROPS? Of course, the obvious answer is that you can enjoy your pension in a lot of EU and EEA countries. But one of the biggest advantages is that you are able to do this tax-free. In other words, the process of transferring your UK pension is simple and there are not going to be any charges to worry about or to half your savings. Moving abroad is a big step that can be expensive. This is one less thing you have to worry about. If you were not moving to one of the listed countries, there would be a huge 25 percent overseas transfer charge or OTC.
In addition, with a QROPS, you can pass on your wealth without a problem. When you have this type of pension scheme, you nominate a beneficiary or beneficiaries. This can be a loved one that can enjoy your wealth when you pass away. This process is a lot simpler and they can access the funds faster. But this is not the only advantage. It also means that you can avoid a lot of inheritance tax. We are talking up to 45 percent. Your family can enjoy more of your hard-earned cash, having to pay less out in tax. In the meantime, you can also enjoy a lump sum of up to 25 percent that is tax-free.
Ultimately, a QROPS is going to be a good option for those that are expats and that are going to be retiring overseas. Do not forget that there are professionals out there that can help you make your decision.