QROPS and Emigration, an Overview

For people who are planning to emigrate from the United Kingdom, it can be a hard, complex process to go through. If you or a loved one is planning on making this kind of move and you have a pension, then you have to do your best to protect it if you leave the United Kingdom. The option to help you is called QROPS. You might ask yourself, however, how this kind of program works and if it is a good option for you.

QROPS stands for Qualifying Recognized Overseas Pension Scheme. The first step in getting a QROPS is to make sure the scheme you are choosing is approved by the United Kingdom custom and revenue services. In the majority of cases, these kinds of pension schemes come into play when some who lives in the UK wants to emigrate and retire somewhere else. Although less common, they can also be used by someone who lives in a location other than the United Kingdom but has built up one of the approved pension schemes and is planning on retiring in the UK.

The most important part of the QROPS is that the pension scheme has to be one of the approved ones. One of the requirements for a good pension scheme is that it has to be part of the European Union. The scheme has to follow all the tax laws of the country as well all other mandates. It doesn't have to be in the United Kingdom, but it does need to meet the rest of the requirements in order to be viable. Another important condition is that the person claiming the QROPS has to be a resident of the country in which the claim is made.

To ensure that your family is taken care of once you are no longer there, you can also have qrops transfer to loved ones. Since not all QROPS provide this option, be sure to ask about it before making a decision. Any pension can be made into a QROPS at any time, except if you have used the pension fund to buy an annuity.

To begin the QROPS process all you need is some basic information, like your name, address and National Insurance number. To make sure that you understand that you will have to pay taxes on any funds if the pension scheme is not approved, you will have to also provide a signed statement of this.

By doing a good amount of research into different pension schemes, you can ensure your pension will be safe no matter where you live. Ask as many questions as you have about the QROPS and take your time selecting one. Your pension funds will be ready for you to use no matter where in the world you make your home.