If you’re a British expat who has retired abroad, you need to know what a QROPS is, as it could make a significant difference to your financial wellbeing moving forward. So what is a QROPS? A QROPS is a Qualifying Recognised Overseas Pension Scheme—and there are some critical differences between QROPS and UK-based pension schemes. Read our guide to QROPS and then talk to your financial adviser as to whether moving your pension into a QROPS would benefit your own particular circumstances.
If you find yourself asking, ‘What is a QROPS?’—then read on. QROPS are designated pension schemes that are based abroad and which have been recognised by Her Majesty’s Revenue and Customs (HMRC) as fulfilling particular required criteria to make them suitable for UK citizens who have retired abroad.
Transferring your UK pension into a QROPS lets you move your pension offshore without incurring the fees and charges that you would if you put your money into an unapproved scheme.
Once your pension pot is in a QROPS, it will no longer be subject to any future changes in UK pension regulations.
A QROPS can be used as an umbrella for any number of pension schemes and other investment vehicles that you have.
Now we’ve answered the first part of this question—what is a QROPS?—it’s time to explain the benefits of moving your pension into one. And there are certainly some very significant benefits to be had.