07/10/2019
QROPS offer some significant advantages which no other type of pension scheme can.
1. Remove the requirement to buy an annuity
Historically, 75% of a British pension pot had to be used to buy an annuity – which provides guaranteed income for the rest of your life.
The downside is yields are low, subject to income tax, and when you die, your pension fund dies with you.
Many outdated pensions automatically default into an annuity at a given time.
But by transferring your UK pension into a QROPS, this danger is avoided, and upon death any funds that have not been used to provide you with income is passed onto your loved ones.
2. Easily pass on wealth
As you nominate your beneficiaries when you transfer your fund into a QROPS, passing your wealth onto your loved ones is usually easier, faster and less stressful for your family than with a UK pension.