Benefits of a QROPS Pension
There are many potential advantages of having a QROPS pension. Of course, a QROPs pension transfer is not suitable for everyone, and expert advice is required to determine whether you can benefit from transferring your existing UK pensions into a QROPs scheme.
Some of the potential benefits of transferring your pension into a QROP are as follows: -
- You can withdraw a tax free lump sum from your pension, of up to 30% of the fund value (depending on the QROPs scheme).
- Avoid paying 55% inheritance tax on your pension fund – you have complete flexibility to leave your pension fund to your family in your will, and all of your unused pension fund will pass to your beneficiaries free of inheritance tax.
- Take income from your pension without deduction of UK income tax at source.
- With a QROPs, there is no requirement to ever purchase an annuity with your pension fund.
- Benefit from much greater investment freedom with a QROPS.
- You can take out a lump sum, and draw your income in any currency you want, thus eliminating any currency exchange risk between the currency of your UK pension fund, and the currency in which you need your income.