To add to the misery of NHS pension holders – some who have witnessed a benefit reduction of up to 13% in just 10 years – an error in pension statement production has resulted in many GP’s being informed that they have exceeded their annual tax allowances by thousands of pounds.
Around a quarter of all statements issued for 2013/14 have been mistakenly issued as ‘final’ bills stating that benefit growth has exceeded the annual allowance, and that new tax liabilities have been calculated.
This gaffe has created yet more panic amongst NHS staff, already concerned by retirement age extensions, benefit reductions, other austerity measures and of course the upcoming ban on pension transfers set to be introduced in April 2015. After this date, NHS and all other public sector schemes will be locked into the deficit-laden UK pension fund, regardless of their plans to retire abroad, or the fact that a more beneficial scheme may be available elsewhere.
Lack of Faith in the System
Pension reforms continue to be introduced to the defined benefit scheme, and the constantly changing goal posts have led to many former NHS employees seeking the stability offered elsewhere.
QROPS Options
For those living abroad, the option to transfer their NHS Pension scheme into a more flexible QROPS is still available, however time is running out. Leaving the pension in the UK will undoubtedly see savings continually eaten into as the Government introduce all manner of measures designed to clawback some of the deficit while they still can.
A QROPS is an overseas pension scheme open to those with savings from any time worked in the UK. They are available in 42 jurisdictions globally and can be tailor made to fit in with current or future retirement plans. QROPS offer all the flexibility and transparency which schemes left in the UK will never again be able to.
Other benefits of QROPS include:
Vast investment choices
Up to 30% tax-free lump sum
Currency choice to avoid exchange rate fluctuations
No Inheritance Tax
With only 7 months remaining for NHS pension holders to be able to remove their savings from the UK, the clock is ticking. And while a QROPS may provide the ideal solution for many looking for the stability and flexibility offered by a QROPS, they may not be right for everyone. Advice is available for those concerned by the current state of the UK pension market, and how the deficit affects individual retirement plans directly.
