UK allowances are likely to face more upheaval from the government, pensions minister Steve Webb has warned.
After a succession of reforms, revisions and consultations, the Dep. of Work and Annuities now wants to urge employees to consolidate tiny annuities left at the back when they change jobs.
The move is yet another uncertainty introduced in to the allowances landscape for retirement savers - but ex pats and global staff with UK pension rights can already take control of their funds by switching to a QROPS.
Contemporary changes in the offshore annuities market have brought tax planning and pension opportunities that were once the province of the super rich in to reach for every allowance saver.
Consolidating several smaller annuity funds in to a QROPS accomplishes precisely what the government intends with for retirement savers with tiny annuity funds - grouping them in to a single fund that gives leads to less expensive operating costs while easier to manage.
QROPS lite pensions offer stripped down versions of the all-singing standard QROPS by offering lower set up and administration costs together will flexible investments.
Many QROPS have no minimum cash value to transfer in - although the amount may vary between suppliers.
For expats, QROPS supply an reinforced tax-free lump-sum payment on retirement. The United Kingdom maximum is 75% of fund value while a QROPS can pay as much as 80% of the accumulated fund worth.
Other extras include exemption from UK inheritance tax rules and pension payments in any major currency instead of only in Sterling, which avoids the vagaries of forex rate fluctuation.
This year, UK allowances have already seen the ditching of the default retirement age and the necessity to buy an allowance.
Other changes on the way include new measures to finance long-term care following the Dilnott Report and the advent of fixed rate state annuity payments.
After a succession of reforms, revisions and consultations, the Dep. of Work and Annuities now wants to urge employees to consolidate tiny annuities left at the back when they change jobs.
The move is yet another uncertainty introduced in to the allowances landscape for retirement savers - but ex pats and global staff with UK pension rights can already take control of their funds by switching to a QROPS.
Contemporary changes in the offshore annuities market have brought tax planning and pension opportunities that were once the province of the super rich in to reach for every allowance saver.
Consolidating several smaller annuity funds in to a QROPS accomplishes precisely what the government intends with for retirement savers with tiny annuity funds - grouping them in to a single fund that gives leads to less expensive operating costs while easier to manage.
QROPS lite pensions offer stripped down versions of the all-singing standard QROPS by offering lower set up and administration costs together will flexible investments.
Many QROPS have no minimum cash value to transfer in - although the amount may vary between suppliers.
For expats, QROPS supply an reinforced tax-free lump-sum payment on retirement. The United Kingdom maximum is 75% of fund value while a QROPS can pay as much as 80% of the accumulated fund worth.
Other extras include exemption from UK inheritance tax rules and pension payments in any major currency instead of only in Sterling, which avoids the vagaries of forex rate fluctuation.
This year, UK allowances have already seen the ditching of the default retirement age and the necessity to buy an allowance.
Other changes on the way include new measures to finance long-term care following the Dilnott Report and the advent of fixed rate state annuity payments.
About the Author:
QROPS pension transfers need expert information. Don't try to transfer your allowance without first talking to a QROPS expert
No comments:
Post a Comment