Can anyone advise on QROPS?

[330J]

Hi all, as per the title really,

My mum has heard about this scheme that from my limited understanding allows you to move your pension pot overseas and access the value (not cash) to invest etc.

She is looking to take the 25% and is not looking to move overseas.

Does anyone have any experience of a QROPS scheme as it seems too good to be true!

Thanks in advance.

[Steffan]

Your mother needs the advice of a pensions expert. This is not a simple subject. I strongly suggest she should canvas several qualified pensions advisers and sees which seems the most appropriate.

It takes 40 years to build a pension. This need careful consideration..

[randlemarcus]

http://www.hmrc.gov.uk/pensionschemes/qrops.pdf

I am not an IFA, but that reads to me as if there is a very beady eye looking at this sort of thing, and it belongs to HMRC.

[ellroy]

330J said:

Hi all, as per the title really,



She is looking to take the 25% and is not looking to move overseas.



Thanks in advance.

She can do this with a normal personal pension with no need for QROPS, the huge costs and the potential revenue investigation.

Speak to an IFA, fee payed.

[Ginge R]

A QROPS isn't automatically a bad thing, but for many people, it might be an needlessly complicated, overly expensive and risky option.

http://www.rightannuity.co.uk/news/qrops-as-an-alt...

If your mum's needs can be catered for, by instance, with a vanilla personal pension, job's a good un.

[330J]

Thanks for the replies everyone.

My mum is planning on getting advice before doing anything as you all recommend but and I thought I'd try on here to see if anyone has actually set one up.

Sounds like a lot of needless potential risk tbh!

[darreni]

randlemarcus said:

http://www.hmrc.gov.uk/pensionschemes/qrops.pdf

I am not an IFA, but that reads to me as if there is a very beady eye looking at this sort of thing, and it belongs to HMRC.

HMRC should be keeping a close eye, they approve & regulate QROPS. Your link is just a list of current approved QROPS schemes (including many of mine).


OP, your mum will not be able to transfer her pension overseas if she remains a UK resident. QROPS are for those living abroad who wish to transfer benefits out of the UK - receiving schemes require HMRC QROPS approval in order that the transferring scheme will allow a transfer.
This would not be of any benefit to your mum
See a UK IFA.

[Bing o]

My IFA (Offshore) has said that it's only worth getting a QROPS with 100k in my pension pot.

What is wrong with a SIPPs, and why do people thuink they qualify for offshore products when they presumably live onshore?

[randlemarcus]

darreni said:

HMRC should be keeping a close eye, they approve & regulate QROPS. Your link is just a list of current approved QROPS schemes (including many of mine).

My comments were aimed less at the list of schemes, than the pre-cursor warnings, that said that while the IFA was off the hook if they could prove reference to the list within 24 hours of scheme transfer, that absolutely did not apply to the end-user, who would be liable for any and all post-facto decisions and penalties. F*(k that for a game of soldiers.

[Ginge R]

I see the first QROPS prosecution has been made.

http://www.qrops.net/qrops-fraudster-jailed-for-3-...

[Bing o]

Ginge R said:

I see the first QROPS prosecution has been made.

http://www.qrops.net/qrops-fraudster-jailed-for-3-...

Bing o said:

why do people think they qualify for offshore products when they presumably live onshore?

[ringram]

Im an ex pat kiwi and intend to take advantage of QPROPS. IMO it was designed for this kind of thing where people "return home" or migrate etc and wish to transfer their pension to a local provider.
I guess people will always try to take advantage, but it seems far too risky to me.

[330J]

Ginge R, thanks very much for the link, it confirms what we were thinking all along. If it sounds too good etc...

Bing O, I was asking for advice about the scheme from people who had set one up as it had been mentioned to my mum as a possibility not about why we think we qualify or not...but thanks for your insight.