Tuesday 10 December 2013

India based UK expats should pool UK pensions into One QROPS in India or Overseas

It is good to consolidate UK pensions into one ‘Qualifying Recognised Overseas Pension Scheme(QROPS) that are scattered among different UK pension schemes. Consolidating UK pensions into one QROPS is cost effective step for India based UK expats.

Most of the India based UK expats often changes the companies in search of better opportunities leaving small pension pots behind. If a pension account not receiving regular contributions then it often results in higher administration costs from pension scheme providers than an active scheme with regular contributions.

In most of the cases, the ten or more year old pension schemes face higher charges than revised modern schemes. It is also time consuming to track the status of the pension schemes across different providers.  So it is advisable to consolidate all the pension schemes into one QROPS. The funds will lie under single account. It saves the time & easy to manage investments if the same is linked to one account.

According to the recent surveys conducted by prominent organizations like prudential that about 25% of the retirement savers got no idea what they would have accumulated in their pension pot. This fact putting them away from making sensible decisions about their savings.

Eventhough the consolidation of pension funds is sensible decision, the retirement savers must know the fact that not every overseas pension scheme is suitable to transfer.

For an information, State pensions cannot be transferred to a QROPS. It is not advisable to get workplace pensions transferred to a QROPS, since Workplace pensions give benefits that are not available with QROPS, so it’s not cost effective to make transfer arrangements. Whatever the pension fund size, it doesn’t matter. Different QROPS providers got their own set of rules about minimum fund sizes. Ultimately, the total pot transferred & consolidated gets counted.

It makes sense in consolidating the pension pots into a QROPS considering the charges draining cash from retirement savings. It doesn’t mean that QROPS providers will cost you nothing. But it is not difficult to find a QROPS with reasonable fee structure. There are about 3000 QROPS across 46 jurisdictions as product as well as jurisdiction options for India based UK expats.

A good Independent financial Advisor can advise with an illustration of why shifting a pension fund is a good idea for many retirement savers.

Please contact me for an informal chat about the transfer scheme with my following Contact details.
Mr Ravi Kumar. Financial Consultant.  Exide Life Insurance Co Ltd
28, 6th Floor, Centenary Building,  Adjacent to Raheja Towers, M.G Road, Bangalore-560 001.       
Cell: +91 9980927393,  +91 9844519872
Email:  ravi.sampige@gmail.com

UK Consultation office :
QROPS Advice
Global Administration office)
14-18 Heddon Street, Mayfair
London-W1B 4DA UK

Email: ravi@qrops-advice.net

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