Many expatriates with NHS pensions are now looking to QROPS as their best option for long term financial security and a comfortable retirement. The unfortunate predicament which the UK public sector pension fund finds itself in will not be lost on anyone, but with benefit reductions being introduced with more regularity, restrictions scheduled to be put in place, and the retirement age extended, QROPS providers are reporting a huge uplift in enquiries from disillusioned NHS pension holders.
As the Government attempts to pull the deficit-laden public sector fund back from the brink, it is the savers that will bear the brunt, essentially being punished for poor investment and calculations which they had nothing to with.
A QROPS offers a range of benefits which the UK will never be able to match up to, including savings being placed into a fund which is not in deficit.
Benefits of QROPS include:
Up to 30% lump sum tax-free upon retirement
Choice of currency
42 jurisdiction options
Tailor-made schemes to fit with individual’s circumstance
Potential for early retirement
With all the uncertainty and prospective legislation amendments to come, combined with the fact that pensions are set to be locked into the UK permanently as of April 2015, it is understandable that so many expats are looking at QROPS as a way out of the UK.
The public sector pension model was recently described as “not fit for purpose” by Prince Charles, and is widely regarded by industry analysts as a ticking time bomb, and one which could go off at any moment.