Offshore Pensions Explained
Many 'offshore pensions' are savings schemes funded by expatriates to provide a lump sum at retirement age, but can in fact be encashed at any time.
They attract no tax relief and are often limited in investment terms to the product providers own funds.
Many expats have these savings schemes but also have pension funds tied up in the UK which are not being utilised to the maximum potential. These pension funds will be subject to UK legislation and benefits and will be regulated accordingly, forcing you to take a maximum of 25% tax free cash and an annuity, or regulated income. When you die your family will suffer a loss of between 55% and 100% of the fund value.
But now... You can make use of our services:
*Have flexibility of income
*Protect your income from exchange rate fluctuations
*There is no compulsion to purchase an Annuity and you can pass on all your remaining fund to your family on death We utilise QROPS schemes (Qualifying Recognised Overseas Pension Scheme) which are specifically designed to enable non UK resident individuals, who have accrued pension benefits in the UK, to transfer these out once they have left the UK.
There are many important benefits available which are NOT available within your UK plans.
The investments within the plan can remain UK based and we make sure that you make the most of your pension fund.
Our QROPS plan is simply a pension that offers you greater control of your pension arrangements. It is your personal wrapper, enclosing investments chosen to meet your specific objectives until such time as you wish, and are able, to take the benefits.
Thinking about investing in a QROPS? Pension plans are important for your future and it's important you find a plan that meets your needs. Expat Pensions offer you the widest range of plans to choose from and the opportunity to get the best value for your money. You can choose from a wide range of funds and various service providers and when it comes to taking your benefits, our recommended pension plans give you even more flexibility and choice than a traditional personal pension, and can help to protect you against exchange rate fluctuations.
Taking pension income:
You may take your benefits in a number of ways, including drawing an income directly from the fund you have built up. This is known as income drawdown (or pension fund withdrawal). Benefits can be taken in stages, as required, leaving the remainder of the fund invested. This allows you to take advantage of continuing investment performance and avoids locking you into one particular annuity rate. Also, the plan is not subject to certain UK legislation after you have been an expatriate for more than five complete UK tax years.
There are some risks associated with drawdown such as investment growth, and levels of withdrawal. For more information contact us.
By utilising a QROPS you will have taken the first important steps towards a more comfortable retirement and taken advantage of significant tax breaks that could help you enjoy the quality of life you deserve in the future.
* When did you last take a look at your existing pension?
* Have exchange rates reduced your spending power?
* Can you be sure your pension is on course to meet your needs?
* Have your needs changed since you last reviewed your pension?
* Do you still have an appropriate investment mix to meet your investment needs and risk profile?
The fact is, if you want your pension to support you as you expect in later life, you need to keep an eye on it now and give it a boost if necessary.
That could mean topping up the amount you're paying in, or simply checking that you're happy with your current mix of investments.
Please note: the value of your investments can fall as well as rise. Investments such as commercial property may take longer to sell than others and you will need to take this into account when you consider taking your benefits. Tax and legislation differ in each country and are liable to change.