To QROPS or not to QROPS...
#1
Just Joined
Thread Starter
Joined: Sep 2011
Posts: 1
To QROPS or not to QROPS...
Hi there!
Wonder if there is anyone out there who can give us clear, factual, IMPARTIAL basic advice on whether we might benefit from moving our UK Pension into a QROPS? We will not appreciate a flood of "financial advisors" with axes to grind trying to sell one particular arrangement or another.
We have owned our home in Northern France (currently valued at £400k) for just over 4 1/2 years, coming up to 5 years.... Frogslegs was 65 last November, his partner of 20 years (PACS'ed 2 years ago) is 53. We have two children from frogslegs' marriage (divorced 25 years ago) of 33 and 35, each with a son and either recently divorced or about to go through it. Such is life nowadays. Frogslegs receives a UK state pension into his UK bank account, and a personal pension from a UK-based fund of approx. £200,000. His partner has no private income. We are domiciled in France but keep British passports. Frogslegs is registering with CPAM as we speak.
We are hearing conflicting reports about the advantages of QROPS, such as:
"You can pull it all out in cash!" "You'll pay much less tax on your total UK pension!" "UK Inheritance tax liability will disappear overnight!" and "My £45k fund went up to £70k in three years instead of reducing year on year". Can anyone please reassure us that these claims are indeed true, and advise whether we should continue researching or leave arrangements as they are?
Many thanks in advance, and happy garlic eating! Frogslegs.
Wonder if there is anyone out there who can give us clear, factual, IMPARTIAL basic advice on whether we might benefit from moving our UK Pension into a QROPS? We will not appreciate a flood of "financial advisors" with axes to grind trying to sell one particular arrangement or another.
We have owned our home in Northern France (currently valued at £400k) for just over 4 1/2 years, coming up to 5 years.... Frogslegs was 65 last November, his partner of 20 years (PACS'ed 2 years ago) is 53. We have two children from frogslegs' marriage (divorced 25 years ago) of 33 and 35, each with a son and either recently divorced or about to go through it. Such is life nowadays. Frogslegs receives a UK state pension into his UK bank account, and a personal pension from a UK-based fund of approx. £200,000. His partner has no private income. We are domiciled in France but keep British passports. Frogslegs is registering with CPAM as we speak.
We are hearing conflicting reports about the advantages of QROPS, such as:
"You can pull it all out in cash!" "You'll pay much less tax on your total UK pension!" "UK Inheritance tax liability will disappear overnight!" and "My £45k fund went up to £70k in three years instead of reducing year on year". Can anyone please reassure us that these claims are indeed true, and advise whether we should continue researching or leave arrangements as they are?
Many thanks in advance, and happy garlic eating! Frogslegs.
#2
BE Enthusiast
Joined: Mar 2008
Location: SE Dordogne France
Posts: 982
Re: To QROPS or not to QROPS...
http://britishexpats.com/forum/showt...08#post9618208
Regarding the other claims you mention I would suggest you bear one thing in mind - if it looks too good to be true it probably is !!!
I have about 50% of my pension assets in a Euro denominated QROPS and the remainder is still in UK in £. I'm not actually drawing on either yet but each on it's own would be enough for us to live on so in the longer term I plan to draw against which is most advantageous at any given time.
I'm sorry I couldn't get my head around your marital arrangements but in non straight forward situations with ex's and various offspring form both sides in the wings things can become extremely complicated so professional advice on the whole picture is essential, not just QROPS.
I have to add that I'm puzzled by two things you say.
1. Frogslegs is registering with CPAM as we speak - How or why is this if you have been living in France for 4 1/2 years ?
2. You'll pay much less tax on your total UK pension! - Except for public service pensions if you live in France then you pay your tax in France. I'm assuming you do not have a public service pension though as if you did it would be a final salary one in which case transferring it to a QROPS, or anywhere else for that matter, would almost certainly be an act of complete madness !!!
Oh, I nearly forgot, welcome to the forum !
Last edited by Im_and_Er; Sep 14th 2011 at 9:27 pm.
#3
Re: To QROPS or not to QROPS...
You almost certainly need professional advice, rather than Forum opinion.
Coincidentally I am in conversation with my financial advisor on this very subject and he considers the cost of changing to QROPS excessive plus there are negative points which are never covered in adverts.
I am still confused even after an hours discussion but have been advised not switch or to buy an annuity but to leave things as they are with a drawdown if wanted.
Everyones circumstances are different though.
Coincidentally I am in conversation with my financial advisor on this very subject and he considers the cost of changing to QROPS excessive plus there are negative points which are never covered in adverts.
I am still confused even after an hours discussion but have been advised not switch or to buy an annuity but to leave things as they are with a drawdown if wanted.
Everyones circumstances are different though.
#4
Joined: Jun 2011
Location: In the middle of 10million Olive Trees
Posts: 12,053
Re: To QROPS or not to QROPS...
as said by others, everyone's needs are different, everyone's situation is different.
it may cost a little bit of money but get good sound advice, probably from the UK from an Independent Financial Adviser.
So saying there have been discussions on other BE country forums from people eliciting information whilst trying to sell something. I am not suggesting you are, but the way QROPS seems to have cropped up in so many places in the last couple of months makes me suspiciious, especially the way the tenses change in your posting.
get yourself a good adviser, someone who you can sue the pants off if it all goes wrong.
rgds
it may cost a little bit of money but get good sound advice, probably from the UK from an Independent Financial Adviser.
So saying there have been discussions on other BE country forums from people eliciting information whilst trying to sell something. I am not suggesting you are, but the way QROPS seems to have cropped up in so many places in the last couple of months makes me suspiciious, especially the way the tenses change in your posting.
get yourself a good adviser, someone who you can sue the pants off if it all goes wrong.
rgds
#5
Re: To QROPS or not to QROPS...
If you get the expat paper The Connection there are articles on Qrops and one Company, regulated in UK is doing Roadshows in France.
www.connectionfrance.com
www.connectionfrance.com
#6
Re: To QROPS or not to QROPS...
Hi there!
Wonder if there is anyone out there who can give us clear, factual, IMPARTIAL basic advice on whether we might benefit from moving our UK Pension into a QROPS? We will not appreciate a flood of "financial advisors" with axes to grind trying to sell one particular arrangement or another.
We have owned our home in Northern France (currently valued at £400k) for just over 4 1/2 years, coming up to 5 years.... Frogslegs was 65 last November, his partner of 20 years (PACS'ed 2 years ago) is 53. We have two children from frogslegs' marriage (divorced 25 years ago) of 33 and 35, each with a son and either recently divorced or about to go through it. Such is life nowadays. Frogslegs receives a UK state pension into his UK bank account, and a personal pension from a UK-based fund of approx. £200,000. His partner has no private income. We are domiciled in France but keep British passports. Frogslegs is registering with CPAM as we speak.
We are hearing conflicting reports about the advantages of QROPS, such as:
"You can pull it all out in cash!" "You'll pay much less tax on your total UK pension!" "UK Inheritance tax liability will disappear overnight!" and "My £45k fund went up to £70k in three years instead of reducing year on year". Can anyone please reassure us that these claims are indeed true, and advise whether we should continue researching or leave arrangements as they are?
Many thanks in advance, and happy garlic eating! Frogslegs.
Wonder if there is anyone out there who can give us clear, factual, IMPARTIAL basic advice on whether we might benefit from moving our UK Pension into a QROPS? We will not appreciate a flood of "financial advisors" with axes to grind trying to sell one particular arrangement or another.
We have owned our home in Northern France (currently valued at £400k) for just over 4 1/2 years, coming up to 5 years.... Frogslegs was 65 last November, his partner of 20 years (PACS'ed 2 years ago) is 53. We have two children from frogslegs' marriage (divorced 25 years ago) of 33 and 35, each with a son and either recently divorced or about to go through it. Such is life nowadays. Frogslegs receives a UK state pension into his UK bank account, and a personal pension from a UK-based fund of approx. £200,000. His partner has no private income. We are domiciled in France but keep British passports. Frogslegs is registering with CPAM as we speak.
We are hearing conflicting reports about the advantages of QROPS, such as:
"You can pull it all out in cash!" "You'll pay much less tax on your total UK pension!" "UK Inheritance tax liability will disappear overnight!" and "My £45k fund went up to £70k in three years instead of reducing year on year". Can anyone please reassure us that these claims are indeed true, and advise whether we should continue researching or leave arrangements as they are?
Many thanks in advance, and happy garlic eating! Frogslegs.
If he is drawing an annuity then I am fairly sure that the QROPS option is no longer available. If he has started drawdown then I suspect that the "crystalised" part is also not available for QROPS.
In drawdown, you can nominate your partner to receive the remaining fund after your death. If the partner continues with the drawdown then there is no tax implication. Any uncrystalised fund can also be left to children and would be considered to be outwith your estate for IHT purposes.
After age 75 the rate of tax on remaining fund (after 2nd death?) is 55% plus any IHT considerations.
I think that you need to consult an IFA who specialises in Uk pensions and QROPS. You shouldn't need to pay them anything and you can walk away at any time.
With your complex family arrangements, I assume that you have considered french inheritance law and set up the ownership of the house accordingly?
Good luck
#7
Just Joined
Joined: Sep 2011
Posts: 1
Re: To QROPS or not to QROPS...
Hello.
I have just spent the better part of 6 months dealing in this precise matter and by referral was able to obtain a clear "cat dog" simple language explanation of what to do instead of sticking darts in newspapers. Be pleased to share the information.
I have just spent the better part of 6 months dealing in this precise matter and by referral was able to obtain a clear "cat dog" simple language explanation of what to do instead of sticking darts in newspapers. Be pleased to share the information.
#8
BE Enthusiast
Joined: Mar 2008
Location: SE Dordogne France
Posts: 982
Re: To QROPS or not to QROPS...
Go on then
#9
Re: To QROPS or not to QROPS...
They usually speak of their financial arrangements and adviser with unbridled enthusiasm encouraging other to follow suit.
However, everyone is different and what suits one person could be totally wrong for another.
Financial advisers can be paid between 1% and 6% of the initial transaction and thereafter varying from 0% to 2% p.a. of fund values.
The one person who is sure to gain from the process is the IFA whether you have a good scheme or not.
In the complex area of financial planning or investment it is the law of "buyer beware". Making the wrong decision or not realising what choices you have and exercising those choices can potentially cost you lots of money.
Your ultimate sanction is to walk away from your IFA which is very easy to do. Trust me, they really, really don't want you to do that.
#10
Joined: Jun 2011
Location: In the middle of 10million Olive Trees
Posts: 12,053
Re: To QROPS or not to QROPS...
my answer to the question is ..... ......
Caveat Emptor
Caveat Emptor