QROPS Questions

romeshw

Hi all,

Please excuse my ignorance, but I hadn't heard of QROPS until this morning when I started searching for information. There is not a lot of clear information out there and I could do with some advice.

I'm 35 and planning to move to Singapore in approximately 2-3 years time. I currently have a SIPP which consists of money being paid in through opting out of the Second State Pension (S2P). If I don't make any additional payments into this, the amount will total approximately £4k by the time S2P is discontinued.

I am currently considering making additional contributions but am concerned about the implications when I move abroad. I am, however, not looking for a dodgy way to access any money early!

1) I know that Singapore firms have been removed from QROPS, so do I have an option to move the money to a QROPS elsewhere? I have ties to Sri Lanka and there are a few firms on the approved list.

2) Do I have to wait until I've been abroad for 5 years before applying for a transfer?

3) Can I leave the money in the UK SIPP? If so, how do I access this when reaching retirement age?

Any advice is appreciated!

casterman

I am in the process of transferring 2 UK pensions into a QROPS in New Zealand although I am not living there. You can hold a QROPS anywhere that is registered by HMRC.

You can transfer into QROPS as soon as you are non-UK resident - for the first five years the QROPS must behave as it would in the UK and any activity will be reported back to HMRC. After five years the reporting restrictions fall away and HMRC have no further interest in what happens to it - hence some will then cash in the entire amount.

There are huge benefits to transferring - no need to purchase an annuity and it can also be bequeathed when you die

dunstonh

http://www.citywire.co.uk/new-model-adviser/new-zealand-to-review-qrops-advice-amid-mis-selling-concerns/a455519?re=12100&ea=196312

New Zealand to review Qrops advice amid mis-selling concerns

casterman

If someone takes out their entire pot as cash via a QROPS and fall foul of the HMRC (55% tax) how would HMRC get their money from someone living abroad?

romeshw

Thanks for the responses. It's good to know that I could transfer anywhere and could do it as and when I go. This raises one further question, what would happen if say, I came back after 4 years for some unforeseen reason?

From my research, the charges for transferring into a QROPS seem prohibitively expensive until you have somewhere in the region of £50k+. What's the cheapest that people have come across?

I would prefer to have my pension held in the currency of where I am planning to retire to eliminate any currency risk, but unless I put in a lot more, it would cost too much to make it worthwhile it seems.