Catering specifically to expats, the Qualifying Recognized Overseas Pension Scheme (QROPS) allows working individuals moving out of the United Kingdom to make fund transfers anywhere in the world and in India. Along with the option of fund transfers, the QROPS comes with the advantage of tax benefits and return on investment. The Qualifying Recognized Overseas Pension Scheme is regulated by the HMRC (Her Majesty's Revenue and Customs).
For working individuals in the United Kingdom who are enrolled in any of the pension schemes, opting for the Qualifying Recognized Overseas Pension Scheme is the best option. The QROPS allows expats to transfer their funds anywhere in the world tax efficiently, structure a post retirement annuity plan or a fixed income, and make a 25% tax free withdrawal from the retirement corpus.
Opting for the Qualifying Recognized Overseas Pension Scheme (QROPS) comes with a plethora of benefits for expats moving out of United Kingdom. Some of the benefits are mentioned below:
Despite India having a large number of citizens working in the United Kingdom, expats have failed to utilize the benefit of QROPS. This is largely due to the lack of awareness of the scheme, ignorance of the related schemes, investment options and the biggest advantage of tax efficiency when making fund transfers. That said, HDFC Life launched Qualifying Recognized Overseas Pension Scheme (QROPS) transfers in 2013-14 and the product is rapidly catching a grip on expats moving back to the country or transferring back to India.
Having always envisioned the need for retirement plans, in 2013-2014 HDFC launched retirement products which function as part of the Qualifying Recognized Overseas Pension Scheme (QROPS). The products are even registered with the HMRC (Her Majesty's Revenue and Customs). Currently, HDFC Life has launched six products affiliated with the Qualifying Recognized Overseas Pension Scheme. The HDFC Life products are listed below:
The Qualifying Recognized Overseas Pension Scheme was launched in 2006 by the HMRC (Her Majesty’s Revenue and Customs). The main focus of the scheme was to enable expats in United Kingdom to transfer their pension funds anywhere in the world.
Anyone who has worked in the United Kingdom and has started a pension scheme is eligible for the Qualifying Recognized Overseas Pension Scheme. For those that have an already existing pension scheme, they can only receive the retirement corpus in the form of a fixed income or annuity.
The corpus is passed on to the dependants or the beneficiaries of the candidate.
Once the transfer has been approved, the corpus will be transferred in couple of weeks to a couple of months, depending on the complexity of the situation.
Once you have reached the age of 55 you will be able to make a partial withdrawal from the Qualifying Recognized Overseas Pension Scheme corpus. Individuals can make a tax-free withdrawal at a pensionable age up to 25% of the corpus. The remaining 75% of the corpus will be returned to the pensioner in the form of annuity or a fixed income.
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