Just heard of qrops- need help
#1
Just Joined
Thread Starter
Joined: Jun 2014
Posts: 8
Just heard of qrops- need help
Hello all.
This subject may have been done to death but it's new to me and I've seen some conflicting views.
I only heard of qrops last week and my circumstances make me a perfect candidate.
I've been googling and investigating and it seems like a great idea for me.
Could someone explain the pitfalls and the downside to me ?
Also which providers in which countries would you recommend?
I live in Turkey, by the way.
Thanks. XX
This subject may have been done to death but it's new to me and I've seen some conflicting views.
I only heard of qrops last week and my circumstances make me a perfect candidate.
I've been googling and investigating and it seems like a great idea for me.
Could someone explain the pitfalls and the downside to me ?
Also which providers in which countries would you recommend?
I live in Turkey, by the way.
Thanks. XX
#2
Just Joined
Joined: Jun 2014
Location: Malta
Posts: 5
Re: Just heard of qrops- need help
Hello Beverley
I'm surprised that you haven't been inundated with QROPS salespeople yet! If you google QROPS you will get a lot of information - some of it accurate.
In short if you are already drawing a pension, that might limit your choices depending on the type of pension you have.
Pitfalls - QROPS can cost more than a good UK pension (but less than a bad one).
Advantages - some tax savings could be made and you can invest in non GBP currencies if you want to. Holders of big pension pots can benefit from leaving the UK pensions system.
Sales Pitfall - being forced into a high commission insurance bond with risky investments. Incorrect application of tax arrangements for your circumstances.
This does not work well for small pension pots - say less than £50,000.
I work in this field in Malta, where we have a good Double Taxation Treaty with Turkey. Let me know if you would like to know more.
Thanks
I'm surprised that you haven't been inundated with QROPS salespeople yet! If you google QROPS you will get a lot of information - some of it accurate.
In short if you are already drawing a pension, that might limit your choices depending on the type of pension you have.
Pitfalls - QROPS can cost more than a good UK pension (but less than a bad one).
Advantages - some tax savings could be made and you can invest in non GBP currencies if you want to. Holders of big pension pots can benefit from leaving the UK pensions system.
Sales Pitfall - being forced into a high commission insurance bond with risky investments. Incorrect application of tax arrangements for your circumstances.
This does not work well for small pension pots - say less than £50,000.
I work in this field in Malta, where we have a good Double Taxation Treaty with Turkey. Let me know if you would like to know more.
Thanks
#3
Just Joined
Thread Starter
Joined: Jun 2014
Posts: 8
Re: Just heard of qrops- need help
Thanks Financeman.
I'd love some more advice. Shall I pm you? I can put in on here- it's not secret :-).
I'm 51, worked for a Uk high street bank for 17 years and been in Turkey for about 20 years and have no plans to return to the Uk. I don't work,have a pension or pay tax here in Turkey.
I haven't a clue how much is in my pension pot- I can never make any sense of the info they send me -but it was non-contributary.
I can't draw it till I'm 55 if I pay a penalty or else I have to wait till I'm 60.
Anything else?
XX
I'd love some more advice. Shall I pm you? I can put in on here- it's not secret :-).
I'm 51, worked for a Uk high street bank for 17 years and been in Turkey for about 20 years and have no plans to return to the Uk. I don't work,have a pension or pay tax here in Turkey.
I haven't a clue how much is in my pension pot- I can never make any sense of the info they send me -but it was non-contributary.
I can't draw it till I'm 55 if I pay a penalty or else I have to wait till I'm 60.
Anything else?
XX
Last edited by beverley cakmakci; Jun 30th 2014 at 4:34 pm.
#4
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Joined: Jun 2014
Location: Malta
Posts: 5
Re: Just heard of qrops- need help
Hi Beverley
I will be logged on here for the afternoon if you want to PM, might be easier. What sort of pension is it - if you are not taking it, you can transfer it to a QROPS, but to make it worthwhile it must be worth more than about £50,000. That will be the amount of the cash equivalent transfer value on you pension statement. If it is less than this the slightly higher cost of a QROPS will most likely outweigh any benefits. Guessing (I too used to work for a high street bank), 17 years will give you a nice value of a sum to transfer, so it should be worthwhile. I can tell you about the options on email or PM.
Thanks
I will be logged on here for the afternoon if you want to PM, might be easier. What sort of pension is it - if you are not taking it, you can transfer it to a QROPS, but to make it worthwhile it must be worth more than about £50,000. That will be the amount of the cash equivalent transfer value on you pension statement. If it is less than this the slightly higher cost of a QROPS will most likely outweigh any benefits. Guessing (I too used to work for a high street bank), 17 years will give you a nice value of a sum to transfer, so it should be worthwhile. I can tell you about the options on email or PM.
Thanks
#5
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Thread Starter
Joined: Jun 2014
Posts: 8
Re: Just heard of qrops- need help
Thanks Financeman.
I don't know the value and the pension people couldn't tell me straight off.
I'm waiting for an email from the bank telling me the value if I wait till 60, take in at 55 or transfer out to Qrops so I can see how much I would be penalised.
Shall I get in touch once I have the figures?
Bev C
I don't know the value and the pension people couldn't tell me straight off.
I'm waiting for an email from the bank telling me the value if I wait till 60, take in at 55 or transfer out to Qrops so I can see how much I would be penalised.
Shall I get in touch once I have the figures?
Bev C
#6
Just Joined
Joined: Jun 2014
Location: Malta
Posts: 5
Re: Just heard of qrops- need help
Yes probably best to wait until you get the statement. One set of figures will be the cash lump sum and income you can expect, the other will be the cash transfer out value. By transferring out you will lose any guaranteed benefits (such as passing part of the pension income on to a spouse) and the possibility of guaranteed increases in pension payments. On the other hand if you leave the pension scheme, you gain more flexibility to suit your circumstances and investment wishes.
#7
Just Joined
Thread Starter
Joined: Jun 2014
Posts: 8
Re: Just heard of qrops- need help
Thanks. I'll be in touch.
Bev C
Bev C
#8
Re: Just heard of qrops- need help
I'm closing this thread.
Just a friendly reminder. Please do not use this forum to tout for business.
Thanks.
Just a friendly reminder. Please do not use this forum to tout for business.
Thanks.