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
Some very interesting points made here!