In April 2006 the British Government introduced Qualifying Recognised Overseas Pension Schemes (QROPS). QROPS legislation gives anyone the legal right to transfer their UK pension overseas, provided the new pension adheres to comparable regulations on distribution of pension payments. This applies equally to company and private schemes, regardless of whether they are defined benefit (final salary) or define contribution (corporate money-purchase, SIPPS, stakeholder pension) schemes.
Just under 80% of all UK final salary schemes are in deficit. Of those, 60% have no hope of recovery. This is one of the main reasons for the growth in the QROPS market.
Her Majesty's Revenue and Customs has carefully vetted and approved a number of such schemes all over the world, and ensures that these are suitable for British expats (or any foreign national with a UK pension).
A QROPS may help you to reduce (or potentially eliminate) taxation on your income when you begin drawing from the pension, and it also offers you the option of passing the proceeds of your pension to the beneficiary of your choice.
If you have a UK pension, you owe it to yourself to take the steps necessary to ensure that your pension is safeguarded, and that you and your family will have the resources to enjoy the lifestyle that you are looking forward to in retirement.
Click here to learn how you can get a free transfer value analysis of your pension.