QROPS Pension Transfers for India Residents and Citizens

Photo of author
Written By Saeed Maleki

India residents and citizens that have a UK pension can now take advantage of the many benefits of a QROPS pension.

Retirement savers can build a larger fund and may drawdown more cash from a Qualifying Recognised Overseas Pension Schemes (QROPS) than from a comparable UK pension. India QROPS can give enhanced tax and investment benefits to Indians with UK pension rights.

Many advisers talk about the benefits of a QROPS offshore pension – but here are probably the five best reasons why investors should consider switching to an Indian QROPS:

  • In line with new UK pension rules, Indian QROPS savers do not need to take an annuity – although they can if they want
  • Any funds remaining in the pension on death can be left to family and loved ones
  • Flexible investment freedom with access to global markets and commodities
  • Take a tax-free cash lump sum of up to 30 per cent of the fund value on retirement compared with 25 per cent from a UK pension
  • Pension income is paid gross in a choice of currencies – including rupees

Accessing an Indian QROPS is easy – simply discuss transferring pension funds from the UK with a suitably qualified independent financial advisor.

The IFA will review current retirement saving performance and compare this with any financial objectives.

The scheme rules vary – some are willing to take smaller transfer funds than others, while some provide self-managed investments.

Remember to quiz an IFA about fees and running costs – investors should expect to pay a one-off set-up fee and then an annual administration and fund management fee often paid as a percentage of the fund size.

Before switching any cash offshore from the UK, the pension investor needs to check residency status.

QROPS pensions are only open to UK non-residents, so any Indian national planning to move out of the UK or has already done so can set up a QROPS.

Getting the best fully regulated financial advice is essential when looking at transferring a UK pension overseas. The QROPS Group is an advisory firm specialising in QROPS transfers for India residents and citizens, contact them today to find out more