Life Before QROPS Pension Transfer
There was a time when UK citizens living abroad and maintaining their UK pensions had no choice but to leave the UK to collect their pensions at the appropriate age. Their "frozen" pensions were subject to severe taxes and regulations, so they had to accept that their pensions would shrink or stagnate.
These strict regulations limit your investment potential and can often be detrimental to your overall pension. Many schemes saw their losses increase by 20% last year. Additionally, tax liabilities that can reach as high as 85% or more could be incurred. The most severe regulation is the one that prevents pension transfer in UK if they die before reaching pensionable age.
The Good News
Foreign nationals have unique governance over their pensions thanks to the Qualifying Recognised Outseas Pension System (QROPS), which was approved in April 2006. This scheme allows for UK pension transfers to other HMRC (Her Majesty's Revenue & Customs) approved pension schemes, in another jurisdiction/country. This allows for greater control and increases the potential to increase and protect pension earnings.
The benefits of an offshore pension scheme
There are many benefits to offshore schemes. They are more profitable than holding pensions in "frozen funds", which can often lead to lower pensions. While securing their pension funds, they allow for greater flexibility for the elderly.
The following benefits can be obtained by transferring funds to Guernsey
* Tax Efficiency
* Investment Flexibility
* Currency Choice
* Strong HMRC-approved pension framework.
* The ability to transfer pensions to beneficiaries.
You can ensure greater financial stability by choosing offshore jurisdictions. An offshore transfer is only possible if you have the ability to choose a currency. South Africa is home to one of the most unstable economies in the world, which makes the Rand volatile. Over the past 20 years, the Rand has fallen by an average of over 20% against the Pound-4000% in this period.