CASH LUMP SUM

UK Pension:- This is limited to a maximum of 25% of the value of your pension fund and for occupational pension schemes the tax free amount is based upon a formula involving salary and service.

QROPS:- May offer a much higher tax free cash lump sum which can be upto 100%.

TAXATION

UK Pension:-All income tax derived from a UK pension is taxed at source.

QROPS:- Can significantly reduce the amount of income tax, in some cases to zero.

ANNUITY

UK Pension:- Pension law forces you to purchase an annuity by your 75th birthday.

QROPS:- No need to EVER purchase an annuity. This means pension companies do not keep your money when you die.

PENSION INCOME CHOICE

UK Pension:- Income drawdown (until 75th birthday) available but only in Sterling and normally subject to minimum pension pot of £100,000.

QROPS:- May allow flexible ‘income drawdown’ known as ‘unsecured pension income’ to continue after age 75, also allows you to alter amounts and currencies.

BIGGER LEGACY

UK Pension:- If you die with a UK pension scheme your spouse can get up to 2/3rds of the pension you would have received (dependent upon the scheme). If you both die your pension WILL die with you.

QROPS:- All of your pension passes to your nominated beneficiaries in full, TAX FREE, and not a windfall for the pension company or the tax man.

INHERITANCE TAX

UK Pension:- Any asset left upon death to your beneficiaries (except your spouse) will be subject to UK Inheritance Tax currently at 40%.

QROPS:- No UK Inheritance Tax charge upon death.

INVESTMENT FREEDOM

UK Pension:- Can be limited to the insurance companies choice of funds or an outsourcing of fund managers, you have no control of the pension fund.

QROPS:- You have greater investment freedom as you have full control of the investment choices as well as the currencies you wish to invest in. You may invest in onshore / offshore funds, fixed deposit rates, total diversification.

INCOME AND BENEFITS

UK Pension:- You are restricted to the amount of income and the currency received.

QROPS:- You may take an income of your choice, alter your income at any time, take capital amounts at any time and in a currency of your choice (subject to scheme rules).

PROTECTION AGAINST CREDITORS

UK Pension:- You have none!

QROPS:- Protection against possible future creditors. (Dependent on jurisdiction of QROPS).

CONFIDENTIALITY

UK Pension:- You have none!

QROPS:-  Protection against ex-spouses, business partners and creditors.