Despite the dull name, Qualified Recognised Overseas Pension Schemes (QROPS) are a hot topic. For any expat who once worked in the UK and has a frozen or deferred pension, there are persuasive reasons to export it, especially if it is a defined-contribution scheme in which an investment pot belongs to you. Defined-benefit schemes, where a calculated pension will be paid, are often difficult to evaluate and many expats make the mistake of not scrutinising them properly.
We have already looked at the principles of QROPS, their historical development and some of the reasons why expats should consider transferring their UK private pensions. The compelling advantages of a transfer are:
- 30% initial lump sum available after five years offshore;
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