Offshore pensions are big business with billions of pounds shifting between Britain and dozens of overseas destinations over the years.
The Qualifying Recognised Overseas Pension Scheme (QROPS) has endured more than a decade of not quite brilliant publicity because HM Revenue and Customs (HMRC) refused to reveal any industry statistics.
Recently, HMRC reversed the policy and published a list of how many expats had switched their UK pensions abroad – and how much money they had moved.
The figures give considerable solace to expats who have transferred their retirement savings to a QROPS and those who are thinking about making the move.
QROPS – How much and how many
Here is a breakdown of the statistics since QROPS were introduced in April 2006:
| Year | Number of transfers | Amount transferred |
| 2006 to 2007 | 2,500 | £120m |
| 2007 to 2008 | 5,700 | £350m |
| 2008 to 2009 | 6,100 | £360m |
| 2009 to 2010 | 6,700 | £460m |
| 2010 to 2011 | 12,800 | £1,360m |
| 2011 to 2012 | 16,400 | £1,040m |
| 2012 to 2013 | 13,400 | £1,000m |
| 2013 to 2014 | 11,300 | £860m |
| 2014 to 2015 | 20,100 | £1,760m |
| 2015 to 2016 | 13,700 | £1,500m |
| Total | 108,700 | £8.8 billion |
Source: HMRC
Currently, providers in 40 financial jurisdictions have 1,264 pensions listed on the HMRC QROPS List published at the start of January 2017.
Over the years, thousands of QROPS have opened and closed in 55 jurisdictions, including a special scheme for civil servants working for the European Union.
The place with the most QROPS is Australia, with 30% of all offshore pensions – numbering 377 on the latest QROPS list.
The 100 Club
Only two other jurisdictions have more than 100 QROPS – Guernsey (148) and the Isle of Man (247).
HMRC does not reveal how much QROPS money is invested in each financial jurisdiction.
The number of QROPS transfers is expected to soar after April 2017, when the British government extends pension freedoms available onshore to the offshore schemes.
This will allow expats to draw all the money in their pension pots in one go, phase withdrawals over their retirement or invest the cash to provide an income.
Only Malta QROPS offer this option – while Guernsey, the Isle of Man and Gibraltar have hinted they will introduce the option as soon as they can after April.
QROPS Information and Guidance
For more information about QROPS and the benefits it provides, download the iExpats QROPS Guide or complete the Get Advice form.
