Expats consolidate pensions and optimise payments via QROPS
Whilst saving themselves time and money, an increasing percentage of the global expat community is learning how to profit from HMRC-approved pensions (Qualifying Recognised Overseas Pension Scheme) and to optimise the payments received from multiple private pension plans.
Having to balance various accounts from former workplaces and other such sources, before they’re forgotten about and lost altogether, can easily incur befuddlement, which is another key reason for more and more to merge their many pension funds into single QROPS pensions.
Monthly fees and charges that are applied to private pension plans and saving schemes can easily lead to the needless loss of income, but a single can easily accommodate them, regardless of their age or income level and without the extra cost of exchanging currency.
It’s said that a quarter of expat retirees only have the vaguest comprehension of what and where their private pension fund is, rendering them incapable of making an informed decision about their imminent retirement, but state pensioners needn’t worry as QROPS are beyond their eligibility.
Rarely do the benefits offered by workplace pension outweigh those offered by private plans such as the QROPS, which perhaps helps to explain why 10,000 Brits are already transferring to more beneficial, straight-forward accounts.
HMRC now endorse 3,000 QROPS throughout 46 global locations, so finding the right provider in the most appropriate jurisdiction doesn’t get much simpler, so an expat’s modest retirement savings can now realise their full potential and avoid numerous costs such as account fees and charges.
Expat retirees with a QROPS can potentially double their final pension pot pay-out, not only by marginalising fees, but by taking advantage of greater annual investment growth rates. And there are many more reasons why a flexible and portable QROPS could be perfect for you.
Account holders can maintain full control of assets and dictate their final beneficiaries whilst monthly income from UK-SIPP pensions increase. Avoiding currency fluctuation and the need to buy an annuity after 75, as well as income and inheritance tax exemption, all boost final monthly pension pay-outs.
By Anthony Standring
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