While politicians squabble over whether Britain is better in or out of the European Union, expats have to make decisions over transferring their pensions from the UK to an offshore Qualifying Recognised Overseas Pension Scheme (QROPS).
Some are uncertain of how a vote to leave the EU in the referendum on June 23 will affect a QROPS.
The answer is whatever the result of the vote, QROPS are unlikely to be affected.
QROPS were first introduced to match a demand from the EU to make accessing pensions easier for British expats and Europeans who had built up pension savings while working in the UK but now lived elsewhere.
The rules also allow non-European Union financial centres to offer QROPS to British expats or international workers from any country with UK pension funds.
What the QROPS rules say
The small print of the legislation requires a QROPS to meet a set of UK rules that do not limit the place where the pensions are based to the European Union.
According to the latest statistics from HM Revenue and Customs (HMRC), 21 centres offering 784 QROPS are outside the EU, while 20 centres providing 294 QROPS are within the EU. This data was issued on April 15, 2016.
The key point is if a QROPS pension meets the qualifying tests, the country where it is based is not relevant.
The tests cover points to consider like local pension regulation, tax paid on benefits and payments to retirement savers aged under 55 years old, to name a few.
Brexit unlikely to impact QROPS
The figures published by HMRC also show that centres hosting QROPS are split 50:50 between EU and non-EU countries, while around three-quarters of all QROPS are based in non-EU centres.
Retirement savers with a QROPS or planning a fund transfer should take personal advice from a suitably qualified and experienced independent financial adviser about how Britain leaving the EU might affect them.
However, it would seem that the legislation does not mean an instant demise for QROPS if the vote is in favour of a Brexit. Rumours that suggest otherwise are simply alarming expats for no good reason.
