Too much choice is often baffling, so how do expats choose which of the 41 financial centres offering QROPS pensions is best for them?
They don’t. This is where an experienced IFA comes in.
Although more than 1,100 QROPS are available worldwide, only a few of those are likely to match your personal and financial needs.
Providers are based in some exotic locations such as Kosovo, Jamaica and Kenya, as well as more mainstream financial centres like Malta, Gibraltar and the Isle of Man.
The differences between some scheme is vast, while others are identical.
Many of the pensions are company schemes for multinational companies or specifically set up for wealthy individuals or families, so these can be struck out straight away.
The IFA will sit with you and discuss your plans for the future. This includes where you will live and your financial goals.
Choose the right IFA first
Your IFA should have a team helping with how cross-border tax between the UK, where you live and where your QROPS is based affect each other.
IFAs should also have the experience and resources to help you choose the right investments that will take you to your financial goals.
Transferring a pension to a QROPS is not a one-size fits all exercise, but devising a personal plan.
Once the IFA has worked out your financial plan, this profile can be matched to the right QROPS.
The trick is having an open mind and letting your personal choices lead you to a shortlist of suitable providers rather than squeezing you into an unsuitable product.
Independent advice is vital
You can see why choosing the right IFA is as important as picking the right QROPS.
The IFA should be regulated and licensed to give pension advice in the place where the expat lives.
Independent advice means having a choice from the whole of the market.
Advice is not independent if the adviser is tied to a financial institution or is restricted to offering advice from a small number of providers.
Selecting where to base a QROPS is more than opting for a pension in Malta, Gibraltar or Australia.
Sometimes the place chooses the expat rather than the other way around.
Further 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.
