Hitting retirement age does not just mean endless travels abroad. One of the first things you will need to sort out before you go on that Mediterranean cruise is your pension. But before you can get the Qualifying Recognised Overseas Pension to work, here are a few things you need to know about it:
What It Means
The QROPS makes it possible for you to transfer your benefits abroad , says the Telegraph, making it easy for you to spend your money on your travels around the world.
Given the number of changes in the legislation and rules governing this, it is best to make sure you do as much research as possible before you choose a provider.
When you withdraw your retirement savings to an overseas scheme, keep in mind that you should not ever go beyond your lifetime allowance or LTA. The present LTA is at GBP1 million. So do your best to limit and plan for your spending accordingly.
The QROPS works in the same way as a regulated scheme. So if you should take your savings and live elsewhere in the world, you will be similar with someone who stays in the country with their savings.
You will have to wait until you’re 55 before you can get access to its benefits. That includes the lump sum payments. Also, you will need to be a non-UK resident for the first five years of your tax years before you can be eligible for these advantages.
Make the Most of It
With plenty of revisions to the legislation of the UK, a lot of expats can now look forward to getting the most out of their retirement benefits by transferring them to overseas plans. These include personal as well as occupational plans.