UK pensions are probably going to face more disturbance from the govt. , annuities minister Steve Webb has warned.
After a chain of reforms, revisions and consultations, the Dept of Work and Allowances now wants to encourage workers to consolidate little pensions left in the dust when they change roles.
The move is one more doubt introduced in to the annuities landscape for retirement savers - but ex pats and international workers with UK allowance rights can already take command of their funds by swapping to a QROPS.
Recent changes in the offshore pensions market have brought tax planning and annuity opportunities that were once the province of the ultra rich in to reach for every pension saver.
Consolidating several smaller annuity funds in to a QROPS accomplishes precisely what the government intends with for retirement savers with tiny annuity funds - grouping them in to a single fund that gives leads to less expensive operating costs while easier to manage.
QROPS lite annuities offer stripped down versions of the all-singing standard QROPS by offering lower set up and administration costs together will flexible investments.
Many QROPS have no minimum money value to transfer in - though the amount may alter between providers.
For expats, QROPS offer an enhanced tax-free lump-sum payment on retirement. The UK maximum is 75% of fund value , while a QROPS can pay 80% of the amassed fund price.
Other extras include freedom from UK inheritance tax rules and annuity payments in any major currency rather than solely in Sterling, which avoids the whims of foreign exchange rate fluctuation.
This year, UK pensions have recently seen the dumping of the default retirement age and the need to buy a pension.
Other changes on the way include new measures to finance long-term care following the Dilnott Report and the introduction of fixed rate state allowance payments.
After a chain of reforms, revisions and consultations, the Dept of Work and Allowances now wants to encourage workers to consolidate little pensions left in the dust when they change roles.
The move is one more doubt introduced in to the annuities landscape for retirement savers - but ex pats and international workers with UK allowance rights can already take command of their funds by swapping to a QROPS.
Recent changes in the offshore pensions market have brought tax planning and annuity opportunities that were once the province of the ultra rich in to reach for every pension saver.
Consolidating several smaller annuity funds in to a QROPS accomplishes precisely what the government intends with for retirement savers with tiny annuity funds - grouping them in to a single fund that gives leads to less expensive operating costs while easier to manage.
QROPS lite annuities offer stripped down versions of the all-singing standard QROPS by offering lower set up and administration costs together will flexible investments.
Many QROPS have no minimum money value to transfer in - though the amount may alter between providers.
For expats, QROPS offer an enhanced tax-free lump-sum payment on retirement. The UK maximum is 75% of fund value , while a QROPS can pay 80% of the amassed fund price.
Other extras include freedom from UK inheritance tax rules and annuity payments in any major currency rather than solely in Sterling, which avoids the whims of foreign exchange rate fluctuation.
This year, UK pensions have recently seen the dumping of the default retirement age and the need to buy a pension.
Other changes on the way include new measures to finance long-term care following the Dilnott Report and the introduction of fixed rate state allowance payments.
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