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QROPS Uptake is in Decline but Suitability is Still the Key Question

When a QROPS isn’t Right

Whether you are a member of a defined benefit plan or another scheme, you may worry about the talk of a UK pension crisis, particularly as the State Pension, as important a safety net as it may be, is worth less than £9,000 a year.

Even with the 25% tax, a QROPS transfer may still be a useful and suitable option for you, especially if you have moved abroad and intend to stay abroad.

But what do you do if your wealth manager advises you against a QROPS – is there an alternative?

For many, in this situation a SIPP (a Self-Invested Personal Pension) may be the flexible vehicle necessary to help you reach your retirement goals.

It gives retirement savers a broad spectrum of investment choice and allows seasoned investors to self-manage their investment, while the less experienced investor can choose to have someone manage the investments on their behalf.

A SIPP can be comprised of bonds, funds, shares and other types of security, so allows for a great deal of diversification.

Furthermore, as you don’t have to make regular contributions, it is possible to set a strategy and then wait for the results; in its own way a SIPP can be surprisingly low maintenance.

And because you can withdraw up to 25% of your SIPP in a lump sum, tax-free, from the date of your 55th birthday, you are able to reinvest, spend or gift a large proportion of the money entirely on your own terms. You then have the option of income drawdown, so that you can receive income while having the security of staying invested.

Expat Retirement Transfer Advice

Blacktower FM can help you decide whether an expat retirement transfer into an HMRC QROPS is suitable for you and your circumstances – for example, whether it is the best way to draw income, and whether it is beneficial from the perspective of inheritance tax and legacy planning.

For more information, contact your local Blacktower office today.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

Other News

Expats Retirement Planning – No-one can See into the Future

Crystal BallWhat should you do if you are an expat and are considering a retirement transfer? Mindful of Brexit’s impending reality, do you make an expat retirement transfer as soon as possible or, fearful of restricting yourself and missing out on any possible opportunity, do you hang on to see what the future holds and wait until after March 31 2019.

There could be risk in waiting, of course, and it is considerable risk. By hesitating now you risk losing the opportunity to take advantage of all the EU expat retirement transfer benefits currently offered to those who choose Self-Invested Personal Pensions (SIPPs) or Qualifying Recognised Overseas Pensions (QROPS) right now.

This is not to say that these advantages will instantly disappear come spring 2019, but the reality is that Brexit is turning out to be drawn-out process with little current certainty and that it will take some time for any agreed changes to take effect.

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China’s Investment In Cayman Islands Financial Services Sector Continues

Maneki NekoThe Cayman Islands has signalled its intention to invite greater Chinese investment opportunities following recent corporate events in Asia in which Cayman Finance CEO Jude Scott spoke about the potential for increasing collaboration.

While attending events in Shanghai, Beijing and Hong Kong, Scott, whose organisation is charged with protecting, promoting and developing the Cayman Islands’ financial services industry “through cooperation and engagement with domestic and international political leaders, regulators, organisations and media”, spoke of how The Cayman Islands could use their status in the wealth management industry to benefit Chinese investment.

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