Move your pension account if you are living outside UK

Retired persons of UK worry about what will happen to their pension if they move abroad. They often gave up their choice of relocation to save their pension accounts. Previously they had to pay a hefty tax to relocate their account.

But scenario has changed with the introduction of Qualifying recognized overseas pension scheme in 2006. It enables UK retirees to transfer their pensions to other countries without

incurring heavy tax.

UK tax structure has some specific rules. In UK a person has to pay heavy tax if he wants to withdraw pension in a lump sum. It becomes quite difficult to transfer any leftover pension to your heir. But they can get rid of all hazards of UK pension schemes transferring their pension fund to other country.

There are certain guidelines in UK to transfer your pension to QROPS:

• You can only transfer your pension to a country approved by UK.
• You can only enjoy the scheme if you are presently living abroad or are planning to move outside UK.
• To avoid tax you need to stay overseas at least for five years after your account is transferred. 

Your account shift from UK must result in higher return. But to ensure higher return, you have to know specific tax rules of different countries. With the knowledge you can enjoy added benefits of relocating your pension to other country. Sometimes it becomes difficult to do all these researches. QROPS’ professionals can guide you in this regard.

It is always better to take advices from professionals before moving your account. They will suggest best options for you on the basis of calculations and provide advices about your scope of earning from different countries. Not only that, they will make every arrangements to transfer your pension into QROPS. So, after retirement you can move freely and explore other countries without fear.

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