Many people here first about QROPS and moving their pension overseas, and later discover that a SIPP may have been the better option. We publish on our QROPS page a list of who should or should not consider one. Here we detail the information about SIPPs!
If you do not require advice, or if you have received advice and want to save money then we are able to conduct your business at minimal cost to you and your pension with no commissions charged.
In essence, if you are under 75 then a whole new raft of flexibility has been made available to you. Death tax benefits have been reduced to ZERO for any funds accessed after 6 April 2015 (even if the person dies in the meantime), and there is greater access in your lifetime up to 100% of your funds wherever you are in the world. The most asked question is, "Do you need a QROPS anymore?" Contact us to find out and we will advise you on your personal situation.
If you are approaching 75 then you need to consider your options more carefully. Over 75 there are reduced options of either an access tax (45% until 2016) or in the future beneficiaries will have to pay income tax on any proceeds they take, although if they leave the fund to accumulate for future beneficiaries then there is 0% tax applied; they can leave the fund until 2016 even if you die in the meantime to take advantage of the new lower tax rules and options.
If you are overseas you will need to consider your DTT with the UK.
CLICK HERE for further info about DTT (Double Tax Treaties).
A Self Invested Personal Pension (SIPP) is simply a UK pension vehicle for allowing investors to control
their investment strategy, and retirement, themselves. It offers more control to the individual and does
not rely on trustees to make decisions for them.
It is ideal for those with larger UK pension pots who want increased investment flexibility including currencies, or for those who are temporarily, but not permanently non-resident expatriates (expats), or for those who think they are likely to return to the UK to live in the future (or their surviving beneficiaries will return to the UK after their death). If your fund is likely to exceed £1,000,000 by retirement, then a QROPS should be considered. SIPPs are the main-stay of retirement planning and are also inheritance tax free and good for IHT planning.
With the new rules brought in April 2015 then some benefits, such as income and flexibility to take
capital have improved dramatically under a SIPP. Also, the fact is that QROPS or QNUPS are far more
expensive than most SIPP products, if not initially then in terms of annual charges. Also, whilst a
SIPP should never be utilised with investments held in an investment bond, and therefore be a fraction
of the cost of QROPS, thus improving returns over QROPS.
QROPS rules are still being consulted on as of May 2015, but as stated above, in most cases for people up to the age of 74, they are better off with a SIPP for retirement planning, rather than a QROP, because of the Budget 2014 and new rule changes in 6 April 2015.
Beware recommendations of an investment made into an investment bond via a SIPP. This is often very costly bad advice dictated by the limited licences and lack of knowledge of the advisers / advisors! In fact some of the better advice, following UK regulations, is only available through quality specialist pension advisers who understand regulations in the UK, and do not base their advice on who pays the highest commission.