Since the introduction of QROPS (Qualifying Recognized Overseas Pension Scheme) an increasing number of people especially expatriates are considering it as an important aspect of their wealth management and retirement planning. Owing to the fact that the QROPS system is authorized by the HMRC, many people tend to overlook other factors that can bring serious consequences if they are not taken into consideration.
Consult A QROPS Specialist
Transferring your pension funds to a QROPS system can result in a fruitless effort if you fail to judge whether it is the right scheme for you or not. There are quite a lot of options available and you should be looking for the best possible option. This means that there are numerous things and issues that must be pondered upon to identify the value of a QROPS system to you. Before you reach any final decision it is suggested that you may contact us or the QROPS Help Centre or a financial adviser who can assist you in decision making after considered every essential aspect of the deal.
Go For Approved Schemes
The first that you must check out is whether the overseas scheme that you want to go for is approved by the HMRC or not since there are certain schemes that are not regulated by the HMRC. You can face serious penalties if you switch to an illegal QROPS that is not recognized by the authorities.
Moreover, there are certain that are flagged by HMRC. This means that although the scheme has been approved but still it is under strict scrutiny and there are chances that it may be removed from the list of approved schemes in the future. Besides this, you should also consult your adviser to find out which investment options are more suitable to you in order to manage your wealth effectively.
Know the Rules and Regulation
It is important that you clearly tell your wealth management adviser about your retirement plans. You should know how much of the lump sum amount you will be able to take on retirement. You must know the exact rules and regulations regarding the overseas scheme you are interested in.
This may sound morbid, but you must also talk to your adviser regarding the after-death rules and regulations of your QROPS. Whether your spouse will be entitled to receive your pension funds or you can choose any other beneficiary such as your children. All these things must be taken into consideration.