Rogue QROPS salespeople looking make a few dollars on pension transferring charges are making ex pats offers that can mask poor bargains.
Lots of the salesmen based in Spain, the favourite destination of ex pats, are charging high arrangement fees but offering poor advice to consolidate pension funds in to a QROPS offshore scheme.
But what appears sensible information can cost pension backers thousands costs and lost benefits - with two main targets:
Pension consolidation - moving 1 or 2 tiny pension funds in to one QROPS scheme on the basis that a single scheme saves administration costs.
This will work for some pension savers, but some advisors and suppliers are subtracting costs of ?10,000 or even more to manage the transfers that are taken from the fund, diminishing the pension pot and effectively, reducing the long term benefit pay out.
Loss of benefits - this is when a pension financier with a workplace defined benefits scheme transfers to a QROPS.
Experienced international financial advisors would speak against this move to a QROPS takes away an assured pension and regularly additional benefits, like a widows pension and life cover that mount up to less than even the extra flexible benefits a QROPS can offer.
Transferring defined contribution pension funds in to a QROPS can offer advantages to an ex pat. An outlined contribution fund is a workplace pension run on similar lines to a personal private pension with investments in stocks and shares.
Ex pats with older QROPS plans could also benefit from transporting their fund in to a new plan with reinforced benefits, like an Isle of Man 50c QROPS offering a 30% tax-free one-off sum drawdown.
If you're undecided about the integrity of your QROPS pension advisor, here are some of the alert signs:
Only QROPs from a single money jurisdiction or provider are offered
The confidant fudges fees and costs
QROPS transfer reports are not personalised.
Lots of the salesmen based in Spain, the favourite destination of ex pats, are charging high arrangement fees but offering poor advice to consolidate pension funds in to a QROPS offshore scheme.
But what appears sensible information can cost pension backers thousands costs and lost benefits - with two main targets:
Pension consolidation - moving 1 or 2 tiny pension funds in to one QROPS scheme on the basis that a single scheme saves administration costs.
This will work for some pension savers, but some advisors and suppliers are subtracting costs of ?10,000 or even more to manage the transfers that are taken from the fund, diminishing the pension pot and effectively, reducing the long term benefit pay out.
Loss of benefits - this is when a pension financier with a workplace defined benefits scheme transfers to a QROPS.
Experienced international financial advisors would speak against this move to a QROPS takes away an assured pension and regularly additional benefits, like a widows pension and life cover that mount up to less than even the extra flexible benefits a QROPS can offer.
Transferring defined contribution pension funds in to a QROPS can offer advantages to an ex pat. An outlined contribution fund is a workplace pension run on similar lines to a personal private pension with investments in stocks and shares.
Ex pats with older QROPS plans could also benefit from transporting their fund in to a new plan with reinforced benefits, like an Isle of Man 50c QROPS offering a 30% tax-free one-off sum drawdown.
If you're undecided about the integrity of your QROPS pension advisor, here are some of the alert signs:
Only QROPs from a single money jurisdiction or provider are offered
The confidant fudges fees and costs
QROPS transfer reports are not personalised.
About the Author:
A bona fide, experienced QROPS confidant will tailor any pension answer to your personal circumstances by offering to give a selection of products from different QROPS jurisdictions
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