QROPS vs UK Pension

If you have savings in a UK pension scheme but are living or considering moving abroad, you may be wondering if a QROPS is right for you. The table below will give you an indication of the differences between a UK scheme and a pension transferred to a QROPS.

Question UK Scheme QROPS
How much can I withdraw as a lump sum from the pension?
Up to 25%.
Up to 30%.
Is my pension income taxed in the UK? Yes Schemes are available which suffer little, or no, UK income tax.
Can I retire at 55? Yes Generally yes, although local rules may change.
Is my position affected by exchange rate fluctuation? Yes, because most accounts are held in sterling. You can invest, and receive payments, in local currency, so exchange rates don't affect the scheme as dramatically.
Are there strict limits to what I can invest in? Investment options are limited often to providers fund only. No, you have a wide range of options to choose from (including commercial property).
Can I pass on my scheme when I die? No, you are usually unable to pass it on to your beneficiaries. Yes, you can nominate benefeciaries to receive the fund after your death.
Is the fund taxed on death? Yes, up to 55% of fund. There is normally no UK tax to pay.
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