Work Abroad? Have a UK pension scheme? It may pay to Invest in a QROPS Scheme

If you have a UK pension fund and are planning to live permanently abroad during your retirement a QROPS scheme is (literally) made for you. QROPS are Qualifying Recognised Overseas Pension Schemes. That is, they are overseas pension schemes that are considered legitimate enough in the eyes of HMRC to manage your pension pot. For those who want to retire abroad this means they have options – Options are always good, so long as you know what they are!

Who Qualifies?

Certain UK pension pots are not eligible for QROPS and cannot be transferred. This includes,

  • A pension that has been used to purchase lifetime annuity.
  • Pensions where payments have previously been made through a “Final Salary Scheme” (annuity).
  • UK State Pensions

SIPPs, SSAS and most defined UK benefit pension schemes can be transferred.

An important thing to note is that having a QROPS will not affect any entitlement you might have to a UK state pension.

QROPS Options

UK pensions can be restrictive. QROPS are more flexible and offer up more options. A QROPS allows you to withdraw money how and when you want it. For example, you can choose to receive a higher income during early retirement and less later on when you really start to slow down. It is also possible to take out a lump sum, as much as you need. You can find out more at the QROPS Help Centre.

Almost invariably QROPS can provide more options than UK pensions with regards to how your pension pot is invested. You will discover a flexible and extensive choice of funds available, able to suit different situations, goals and time-planning. Unlike guaranteed annuity there are some elements of risk with investment pensions. How much risk you are willing to take is also relative to the options available to you – Although of course, professional management will usually minimise risk.

What Countries & Pensions Qualify?

HMRC (who introduced this new scheme on April 6th 2006) has strict criteria that must be met for a foreign pension to qualify. Not all countries and all foreign pension schemes are eligible. In addition, transfer penalties as well as taxation depends on the country. However, it is not essential to transfer to a QROPS in the same country you retire.

The HMRC has a list of QROPS and the latest PDF can be downloaded HERE.

Get the Best QROPS for You

There is a myriad of options available using QROPS for UK pension holders who intend to retire abroad. Some countries do not recognise trusts (such as the USA and France), which can make taxation a difficult hurdle to manoeuvre. Without doubt, pensions and QROPS are a complex matter but many ex-pats have found them more than worthwhile. Even so, making the wrong move could cost you heftily. That is why it is absolutely essential to find out all the options and get the best advice by visiting a QROPS help centre and speaking with a professional pension advisor.]]>

Emergency Loans for When It’s Absolutely Necessary

If you find yourself facing financial hardship, a payday loan might be the best solution. Payday loans are short-term loans, and you will be expected to pay the money back when you receive your next pay packet. If you delay repaying a payday loan the interest rate will rise substantially, so make sure you do not ask to borrow more than you can afford to pay back.

The good thing about payday loans is you do not have to have a decent credit score to apply. It is important that you can show proof of income, and if you are unable to you will most probably not receive a payday loan. The amount you will be able to borrow depends on your pay check, and if the lender thinks you will be able to pay the money back on time.

It is very easy to apply for a payday loan, you need to do is find a reputable lender online and fill out some simple details. You must be over 18 years of age and have a bank account. Once they lender approves your loan, the money will be in your account within just a few hours.

Just like with any other loan, payday loans need to be repaid in full plus interest. Because no credit checks are done when you apply for a payday loan, this type of loan is considered to be high risk and therefore the interest is more than a regular bank loan. If you default on your repayments, the lender is likely to give you an extension of one week, but everytime an extension is granted the interest will go up further.

Do not be taken in by all the hype over payday loans, as some advertisements claim they are the solution to all your financial problems. Although they can help you out when you are in our financial fix, you should not rely on payday loans on a regular basis because eventually you will find that the interest makes it very difficult to pay consecutive loans back on time.

Therefore, one should think of payday loans is a solution to a financial emergency but not something that one should take out when circumstances do not deem it absolutely necessary. Also, when you are looking for a payday loan lender make sure you are dealing directly with the lender rather than payday loan brokers. Payday can brokers will also take a fee for putting you in touch with the lender which will push your repayments up further.