No Lifetime Allowance – With a QROPS, you have no limit to how big your pension can grow. In the UK, the lifetime allowance is 1.25million, which will be reduced down to 1 million this year.
Tax-Free on Death – QROPS have no tax on death regardless of your age.
Consolidate Your Pensions – A pension transfer will allow you to group together multiple pensions if you have contributed towards more than one pension scheme during your time in the UK.
No UK Tax on Pension Income – Transferring your pension into a QROPS will eliminate your requirement to pay UK tax up to 45% on your pension income. It may even be possible to pay no tax at all depending on your country of residence.
A Lasting Amount – Unlike most pensions in the UK which are reduced down to half for your spouse when you pass away and then stop entirely following the passing of your spouse, the full pension amount can be preserved in its entirety with a QROPS.
Higher Lump Sum – Unlike the UK that restricts your tax-free lump-sum to 25%, you can take up to 30% tax-free with a QROPS if you have been a non-UK resident for 5 or more years.
Potential for Better Performance – Unlike a UK scheme which might be restricted to just sterling investments, a QROPS grants the ability to hold and invest the pension in any currency. It may also present investment options not available in a UK scheme.
Currency Avoidance – When you start to draw-down on your UK pension and / or take a lump-sum, every payment will need to be converted to the currency of your new location and as such, will be continuously exposed to the current performance of your required currency.
Take Control – Whilst a lot of pension pots are in a very good state, there are also a number with an unhealthy deficit and low funding level. A QROPS gives you the ability transfer your pension away from these pension pots and take control over your pension.