What are the Costs of a QROPS Pension Transfer?
The costs of a QROPS Pension Transfer depend on the value of your UK Pension. If you consider costs as a percentage of the pension value, then the higher the pension value, the lower the costs.
Each specific QROPS scheme varies and has different costs and flexibility. Generally, costs are comprised of three components:
· A fixed setup cost.
· An annual management cost
· The underlying fund charges. (these depend on the funds chosen)
Each specific QROPS scheme varies and has different costs and flexibility. Generally, costs are comprised of three components:
· A fixed setup cost.
· An annual management cost
· The underlying fund charges. (these depend on the funds chosen)
If you consider the benefits of a QROPS Pension Transfer, the costs should not be the consideration. However, there are many advisers who advise schemes with extortionate costs, that aren't necessary. The key thing that you need to consider is the flexibility and restrictions of the QROPS scheme that you are transferring your UK Pension or "frozen" pension into. These restrictions depend on the jurisdiction, and we have found Guernsey to be the most favourable.
Due to the fixed setup costs, it is generally advisable that pensions in excess of £25 000 be considered. If you have multiple pensions you can combine these to reach this figure, and if your value is a little less, you can make an additional contribution.
Due to the fixed setup costs, it is generally advisable that pensions in excess of £25 000 be considered. If you have multiple pensions you can combine these to reach this figure, and if your value is a little less, you can make an additional contribution.
Remember, that you will now have a tax-efficient, structure with diverse funds and flexibility that are generating a better return. This structure is a good savings vehicle and adding additional funds, would be putting those funds to good use. Thus, this is another benefit of a QROPS Pension Transfer.
For more informaton visit QROPS Costs.