Taking Advice on QROPS and Pension Drawdown

A QROPS pension scheme serves to be an excellent option for those who want to retire permanently outside UK. It comes with comprehensive flexibility in handling pensions. QROPS also comes along with apparent tax as well as investment benefits. Using qualifying recognised overseas pension, the UK private pension owners are able to benefit the most out of it.

Pension drawdown is also called income drawdown/ withdrawal or pension release. It comes along with many benefits, like higher control on where it has been invested, tax efficiency and high flexibility. Moreover you do not have to purchase any annuity within QROPS.

Pension drawdown however comes with some disadvantages also- firstly one has to decide the type of income required along with the additional benefits you would receive. It also causes you to loose the ownership of your funds. You also loose the death benefit; moreover you do not have investment growth anymore. Finally, once you choose your income type, it cannot be altered again.

Since all these schemes and plans are very complicated, it becomes important to discuss them out with a reliable financial advisor. Wrong choice of schemes can lead to problems in future; in the same manner right choice can help you streamline your demands and financial provisions with much ease. Qualifying recognised overseas pension especially needs to be chosen with much care. There are many financial advisors who advise on the QROPS plans. A wrong choice might result in significant loss owing to penalty demanded by HMRC. Many have suffered enormous fine when the scheme they choose were not meeting the HMRC guidelines.