What is a Qualifying Recognised Overseas Pension Scheme (QROPS) Mis-Sell?
QROPS are overseas pension schemes that are designed to be similar to UK pension schemes. They’re offered in many other countries and allow savers to legally access their funds outside the UK. This allows for a number of benefits including tax exemption on income, significant tax relief on investment, and a host of other benefits including legal clarity. They provide a flexible solution for individuals who want to reduce their tax bill.
QROPS pensions are a type of pension that is only available outside the UK, and are based on the location where they are purchased. They provide a flexible solution for individuals who want to reduce their tax bill. The UK is a popular location for people to invest in pension plans that provide them with a guaranteed income. However, if you live outside the UK and want to purchase a QROPS pension, you can enjoy a flexible solution with your money.
The Disadvantages of QROPS Not Explained
QROPS is an alternative to traditional pensions, particularly for those who are self-employed or can’t afford a higher level of private pension scheme. It allows people to build up their own pension pot without having to work for a company that offers these schemes. However, there’s no certainty that you will get your retirement benefits when you retire as many countries have not yet implemented QROPS schemes into their legal framework and they are not regulated by either the UK or EU Pension Schemes Regulations and other legislation.
This means that it could be difficult for individuals to claim their benefits if they live outside the United Kingdom or Europe and the security of your QROPS scheme is at risk.
The Risks of QROPS
- High tax rates of up to 55% if you make an unauthorised transfer to your bank account in the next two years.
- Excessive commissions paid to your QROPS management company or fund manager when you can’t access your pension.
- Hidden costs involved with transferring out pension funds. These include the loss of some or all of your current benefits and fees such as administration charges and transfer charges.
Can you claim QROPS compensation?
There is a lot of confusion in mis-sell pensions and it’s important to understand your rights, here are a few of the ways you may have been mis-sold:
- No personal circumstances were considered at the time of purchasing your QROPS insurance policy by your financial advisor
- You were not told about the risks of QROPS.
- You were told to transfer your entire pension savings into QROPS
- You were advised that transferring your pension was necessary
If you believe you have a claim and would like us to review the paperwork for you we work on a no win- no fee basis and we are always happy to help, Just click on the link here RTR claims