QROPS and The True Cost of Scepticism for UK Pensioners
Qualifying Overseas Pension Schemes (QROPS) are proven and have already provided for many UK pensioners who now enjoy a relaxed lifestyle as part of their comfortable overseas retirement. Now, unless they learn of all their HMRC-regulated options, British retirees might be held back from turning their same sun-drenched dreams into reality.
The sad truth is that despite mounting evidence illustrating the general futility of future state pensions, many will settle for a sub-standard retirement before looking into all their options. Nest eggs now share common enemies that come in the form of heightened taxation rates and lowered incentive rates, which together equate to a humble and restricted retirement for many.
Whilst QROPS and other such schemes that are in keeping with a UK pension have been proven legitimate for a number of years, many British pensioners have retained an underlying reluctance to learn more about their benefits. In all likelihood this has stemmed from the fearmongery that’s spread throughout the financial sector with every economic downturn the UK has faced.
The negative press that strictly pertains to a plethora of fly-by-night, get-rich-quick schemes of yesteryear has seemingly damaged the image ofSomewhat understandably, sceptical retirees have now succumbed to dissuasion and as well as accepting a lower level of retirement income, are avoiding any and all such schemes all together.
Technical manager and pension expert John Dunn commented: “The marketing of QROPS from certain sources focused on tax avoidance and not as a means for an individual’s intent on retiring abroad and moving their retirement funds with them. This aggressive marketing was perceived as not being in the spirit of the legislation and provoked HMRC into reviewing the legislation.”
British pensioners remain uneducated and unconvinced where QROPS are concerned. The laws surrounding the schemes have become more stringent in recent years, which is why independent financial advisors have seen unprecedented uptake from an international retiree community. But QROPS are more than “above board”; policy holders agree they’re beneficial in a number of ways.
The good news is that existing UK pensions can be transferred with minimal fuss, meaning retirees have very little paperwork and relative red tape to become entangled in.
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