SIPPs & QROPS
UK Pension Changes: for better or for worse?
Understanding your international pension benefits can be difficult at the best of times but with recent legislative changes there could be opportunities, and indeed threats, to your existing pensions. Arm yourself with the facts here.
Frequently asked questions:
What is a SIPP?
A Self Invested Personal Pension is a UK based private pension with added functionality, transparency and flexibility. A SIPP is a pension ‘wrapper’ and within the wrapper you can invest in a range of opportunities, effectively designing your retirement strategy to best suit you to and through your retirement. It’s worth noting that as this is a UK based plan, it is subject to all the benefits and drawbacks of UK legislation. It is a fully functional and regulated UK plan and will continue to meet your needs whether you are a UK resident or live overseas.
What is a QROPS
A Qualifying Recognised Overseas Pension is an international pension plan recognised by the HMRC. While it is recognised and authorised to accept transfers of pension funds from UK plans, it only needs to report to the HMRC for its first 10 years and it is not subject to continuing UK pensions legislation. It can adapt to your changing circumstances and can also benefit from local taxation.
So which one is better for me?
At Chase Buchanan, we recognise the dangers of generic advice. Your future is personal, your circumstances are individual and there will be reasons for and against many options that we are able to present to you. We need to understand what existing plans you have in place, your taxation position and the tax status of the country you currently live in and plan to retire in.
In order to provide the right advice we really need to take time to understand your current and expected future circumstances and your expectations for Inheritance and family income in the event of your death.