If you are in a Final Salary scheme you need to act now! Or you may be sorry, as time is running out!
ZURICH, Switzerland (March 26, 2014) — Given this budget is in the run up to the next election in 2015. As normal it is a sweetener, and lots of smoke and mirrors.
After the smoke has cleared however, if you are in a Final Salary, also known as a Defined Benefit pension scheme. Take note the option to transfer to a QROPS is to be removed.
Combine this with the Government’s announcement that it intends to abolish tax allowances for non UK residents. So pension benefits you take in the UK would be taxed up to the full rate of 50%, on the whole amount. The future looks bleak if you are in a Final Salary scheme but no longer live in the UK.
The pension reforms that were announced are likely to encourage a lot more people to look at QROPS as a very attractive alternative to leaving their pensions in the UK.
Moving your UK pension arrangements to a QROPS if suitable given your own particular circumstances, can only improve your position.
Most importantly, once moved to a QROPS you have control over your money. If left in your UK pension arrangement it is highly likely that additional constraints will be put in place which will adversely affect you.
If you have a UK pension and have left the UK, or are considering a QROPS transfer, contact Waterstone Investment Associates.
John M Pye
Waterstone Investment Associates Inc.
Swiss Post Box: 100988
CH – 8010 Zürich