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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