qrops pension

Stevo412

I have been advised after a pension review to transfer my 2 frozen personal pensions into a QROPS pension (Harbour Pensions)...any advice?

bigadaj

Who did the pensions review?

A quick google shows they are a new company wit about a years record but no lists of unhappy customers as yet which is common for the worst companies.

Where are you based and why is a romps scheme attractive to you?

Aegis

Stevo412 wrote: »

I have been advised after a pension review to transfer my 2 frozen personal pensions into a QROPS pension (Harbour Pensions)...any advice?

Are you either a non-UK resident or looking to become a non-resident in future? If not, this is very unlikely to be suitable for you. QROPSs are generally more expensive and no more flexible than SIPPs for anyone planning to remain UK resident for the rest of their life, so unless you are leaving the UK there's really no reason I can think of to recommend an overseas structure.

Drp8713

Don't do it

dunstonh

I have been advised after a pension review to transfer my 2 frozen personal pensions into a QROPS pension (Harbour Pensions)...any advice?

Probable scam.

1 - frozen pension indicates a final salary scheme (unless you are using the wrong terminology). Transfers out of these is wrong in over 95% of cases. So, are you in that 5% or the 95%?

2 - QROPS is designed for people that have moved to reside in other countries. Have you moved to the country you are transferring the pension to?

3 - QROPS is often used to commit tax fraud to unlawfully transfer your pension when you do not meet the required criteria. Usually, it is unregulated companies that facilitate this. Is your company regulated?

4 - the use on unregulated investments is a high risk area. The FOS are upholding nearly 70% of complaints in that area but many find they have no consumer protection when the companies they used turn out not to be regulated. Unregulated investments are specialist and for large investors who dont mind taking a punt with a small amount of their wealth. Does that fit with what you are doing?

5 - did you approach them or did they approach you? if the latter, then chances are it is a scam. Reputable companies do not cold call. There are a lot of scams going on and all seem to originate from cold calls offering reviews.

jamesd

Unless you are going to live abroad QROPS is unlikely to be a good idea. Personal pensions can just be moved to other UK pension schemes if there's something to dislike about the current ones.

QROPS tends to be used for investment scams, particularly if it is a result of a cold call rather than you knowing that QROPS may be good for you and searching for advice proactively yourself. Typical scams would involve things like investing in foreign property or trees, where the sale is based on fake profit claims that the investor isn't in a position to personally verify.

Woodface

dunstonh wrote: »

Probable scam.

1 - frozen pension indicates a final salary scheme (unless you are using the wrong terminology). Transfers out of these is wrong in over 95% of cases. So, are you in that 5% or the 95%?

2 - QROPS is designed for people that have moved to reside in other countries. Have you moved to the country you are transferring the pension to?

3 - QROPS is often used to commit tax fraud to unlawfully transfer your pension when you do not meet the required criteria. Usually, it is unregulated companies that facilitate this. Is your company regulated?

4 - the use on unregulated investments is a high risk area. The FOS are upholding nearly 70% of complaints in that area but many find they have no consumer protection when the companies they used turn out not to be regulated. Unregulated investments are specialist and for large investors who dont mind taking a punt with a small amount of their wealth. Does that fit with what you are doing?

5 - did you approach them or did they approach you? if the latter, then chances are it is a scam. Reputable companies do not cold call. There are a lot of scams going on and all seem to originate from cold calls offering reviews.

For balance, how about some information on the benefits of QROPS for overseas individuals? It exists for a reason.

What about the 55% death tax that applies to personal pensions in the UK? Presumably some of the UK financial advisers on this forum wouldn't regard this as being worth avoiding. QROPS provides a legitimate means to do so.

What about the numerous defined benefit schemes that are underfunded in the UK? Some of these are keen to offload their ongoing liabilities and therefore offer generous transfer values. A good adviser will conduct a transfer value analysis to see how benefits under a QROPS would compare to the existing scheme.

Even if benefits can't be matched, what about individuals whose overwhelming priority is to leave a legacy for their children? Defined benefit schemes don't generally provide this.

What about currency risk? Is it preferable to have your pension paid in your local currency or are you happy to take the risk that the relationship between your local currency and GBP might shift.

Those are just *some* of the benefits of QROPS. That isn't to say it is the right thing to do; merely that it might be worth investigating through a reputable IFA who specialises in this area.

dunstonh

For balance, how about some information on the benefits of QROPS for overseas individuals? It exists for a reason.

Where is it not balanced? The post states where it would be used.

What about the 55% death tax that applies to personal pensions in the UK? Presumably some of the UK financial advisers on this forum wouldn't regard this as being worth avoiding. QROPS provides a legitimate means to do so.

There is no 55% tax on pre-retirement pensions in the UK. Perhaps that is why it was not mentioned. It only applies to crystallised pensions but it is being reduced next year. Perhaps some dodgy QROPS companies have been misrepresenting the tax?

What about the numerous defined benefit schemes that are underfunded in the UK? Some of these are keen to offload their ongoing liabilities and therefore offer generous transfer values. A good adviser will conduct a transfer value analysis to see how benefits under a QROPS would compare to the existing scheme.

What about the pension protection fund that all schemes are required to be a member of?

A good QROPS company wouldnt try and make out that this is an issue.

Even if benefits can't be matched, what about individuals whose overwhelming priority is to leave a legacy for their children? Defined benefit schemes don't generally provide this.

Those people typically fall under the 5% and even then they have to be sure of the reasons for doing and you would not use QROPS. You would use a section 32 buy out bond or personal pension.

What about currency risk? Is it preferable to have your pension paid in your local currency or are you happy to take the risk that the relationship between your local currency and GBP might shift.

This needs to be factored in to the decision on post retirement income for those living abroad at the post retirement stage.

hose are just *some* of the benefits of QROPS. That isn't to say it is the right thing to do; merely that it might be worth investigating through a reputable IFA who specialises in this area.

And not use one of the many scam or dodgy companies that encouraged UK residents to transfer their pensions offshore for their own benefit and not the pension holder.

atush

Woodface,

No one said to not use Qrops if you were living overseas and intending to retire overseas. Which is why the question was asked.

Do not look for conspiracies where there are none.

Do you work for a company that does Qrops?

Dunnit

Tush,

Count the posts. Anyone who has less than 10 posts and comes on here expounding the benefits of anything that can lead the unwary into dodgy areas is likely to be attempting to sell.
If only we got a £ for each one that was identified then we could all retire. As a newbie we are not allowed to be too hard on him

atush

I did that hence my question. Which was within Newbie rules lol.