pension loan/QROPS

LorenD

I have been looking into release of funds from pension before the age of 50. I have approached two companies, namely

1. the first offering a loan against a frozen policy I hold. They aim to transfer the same into a fund KJK Investments, whereafter they will give you a loan up to 50% of the pot. You have to pay the first year's interest up front which they deduct from the loan they give to you. Interest is then charged every year until retirement.

2. Second option (If I move out of the UK) is for the company to transfer the pension pot to a Qrops outside the EU, once this is done they take the transfer fee by way of commission which is 15% and then a designated bank in the Isle of Man will thereafter transfer the money to me.

Is there a loophole in the system, that enables you to draw on your pension under 50? Would welcome any advice.

Many thanks

NeilRoy1969

Hi there

I did a lot of investigation into Qurops, as I may be becoming a resident abroad and looking to transfer my pension to a Qurops. You are not allowed to have any access to any of the funds in the first five years if you are under 50, as the administrator has to report any benefits to the government. If you take any cash from your pension in the first five years you will be liable for very high tax charges, from memory of up to 70% of your fund. Dont do this option unless you are willing to pay the tax charge.