Pensions experts have spoken about the continued benefits of qualifying recognised overseas pensions schemes (QROPS), despite the UK government's planned annuity reform.
The UK government has recently outlined plans to change the current annuity system. People will no longer be required to purchase an annuity before the age of 75, and pensioners will be allowed to cash in their pension pot and spend it as and how they want.
Some financial commentators feel that this could sway some expats into not taking out a QROPS, however most experts have rubbished these claims and insist that the QROPS is still the best option for UK expats to get the most out of having a pension abroad.
AES International managing director Sam Instone said: “I think overseas pensions will remain very clearly in the best interests of lots of clients.”
And Montfort International managing director Geraint Davies highlighted the risks that could arise if expats keep UK pensions: “If a person is going to live in another country, you have to know what the impact is of retaining a UK pension whenever UK or local legislation changes.”
If you are planning for an offshore retirement and are interested in the benefits of a QROPS, speak to a recommended IFA today.