Qualifying recognised overseas pension schemes (QROPS), can be a great option for UK residents who wish to live overseas later in life. However, there are a number of aspects to consider before you decide whether it is right for you.
Your pension is your future. One of your most important financial assets, and something you don’t want to decide lightly. Having the right pension fund for your personal circumstances can make or break your future. You want to make sure you are seeking professional advice, from a qualified and reputable financial advisor.
However, sometimes even when you get professional financial advice, you can be susceptible to risks when transferring your pension to a QROPS. It’s important to understand and be aware of these issues.
There are quite a few factors that can put your financial future at risk, leaving you vulnerable when you should be enjoying a stress-free retirement.
Some people use QROPS to avoid their UK tax, but by signing up for QROPS, you will be disqualified from any of the benefits of your original UK pension fund. This could leave you liable to additional tax charges.
The security of your QROPS could also be at risk, as schemes that fail to comply with the HM Revenue and Customs (HMRC) requirements have been declared illegal. Even ones currently listed as accepted could become unlawful, making your pension vulnerable.
If your QROPS pension is declared unlawful, any transfer you make will be treated as unauthorised and you may be penalised. Transfers may be taxed at 55%, you may incur additional fees, and excessive commissions to your QROPS management company will be wasted.
When Can You Claim?
Unfortunately, mis-sells can be quite common. Even if you take precautions to ensure you are making a sound decision for your future, sometimes you can still be mis-sold a product that is not suitable to your circumstances. Dodgy financial advisors looking to make extra commission and changes to laws can both be contributing factors to mis-sold pension schemes.
This can have a very negative impact on your future, leaving you financially unstable and paying for fees you can’t afford.
If you are mis-sold QROPS or have suffered financial loss, you may be eligible to make a claim. Here are some of the reasons you could be entitled to financial compensation;
- Your personal circumstances were not accurately considered
- You were not properly informed about the risks of QROPS when you were transferring
- You were recommended to transfer your entire pension savings
- You were told by the salesperson that transferring your pension was mandatory
If you would like to make a claim on your QROPS, RTR Claims can help make the process easy for you. We work on a no-win, no-FEE basis. You’ve got nothing to lose and everything to win, so take your future back into your own hands.