Through QROPS many retirees are moving
abroad to live out their golden years exactly the way the planned to do when
they were younger. Whether you yearn to explore foreign countries or crave
sunny beach days, there really is no doubt that QROPS is the perfect solution
for your retirement. The first thing you need to know is that it is not
uncommon for those entering retirement to consider a life abroad.
In the past, those choosing to spend
their retirement aboard would be taxed heavily on their pensions. This was due
to the fact that retirees moving abroad were forced to transfer their pension funds to
the country they wished to move to. Adding to this was the added confusion of
what would happen to the funds once they arrived in the other country. This is
no longer the case. QROPS is an all-encompassing solution for retirees moving
aboard.
Where
is all started
The legislation was passed in 2006 to
introduce QROPS for retirees. Through QROPS, certain standards would need to be
upheld in the transfer of pensions from UK based schemes. The legislation also
sought to include private pension funds, which had previously been excluded
from transfer agreements. This has allowed anyone receiving a pension to
transfer it to a qualifying country, without having to endure heavy tax burdens.
Finding
the best QROPS
Since the legislation was passed,
countless QROPS schemes were started. This is great because it gives those
looking to retire several options to choose from. But, there are a number of
things you need to take into consideration before choosing your scheme. First
of all, you need to make sure that the option you choose is in fact, registered
with the UK government. To do this you need to get hold of the company’s
accreditation form and you need to double-check it against the records held by
HM Revenue and Customs.
Next, it is advised that you make
contact with a qualified advisor dealing specifically in QROPS. Your advisor
would be able to help you find the QROPS which matches your specific needs and
requirements. Alternatively, you could also contact each scheme which catches
your eye and request that they send you all the relevant information on their
scheme. You need to make sure that you read and understand every aspect of the
documentation you receive.
The easiest countries for QROPS pay-outs
fall within the EEA also known as the European Economic Area. The ease of
moving to these countries lies in the limited paperwork which you will need to
sift through. By choosing an EEA country you are also more likely to be able to
manage your affairs including consulate visits. The only difference between EEA
and non-EEA countries is the amount of paperwork you will be required to
complete.
Once you have your paperwork and affairs
in order the next thing you need to worry about is getting packed and ready for
your new life. It really is that simple. By choosing to invest in QROPS you are
setting yourself up for wonderful retirement full of exciting adventures.
