UK Pension Transfers including QROPS

UPDATE:

This article is about UK Pension Transfers and NOT JUST QROPS.

So many changes have taken place, not just through BREXIT but for many other reasons too. One thing I must bring to your attention immediately:

If you were only offered QROPS and no alternatives, you have the WRONG ADVISER!

What are your future plans?                          Where are your pension funds?

When do you need income?                           What are your family circumstances?

What type of pension do you have?              Is this best for you?

Plus many other questions the adviser will discuss with you, must be discussed before a recommendation is made and you make the decision BEST FOR YOU. Always feel free to ask YOUR questions too.

QROPS may be best for you, but equally, it MAY NOT

This is one of my recent blogs which warns about getting misled by newspaper adverts:

  As it appeared on Twitter     

 DON'T BE MISLED Financial Pages in Spain: http://ow.ly/NLbm30rp9f3 Newspaper 'articles'             which are really ADVERTS #financial #pensions #Spain BEWARE Misleading & biased                     'information'

2021 Brings many changes

I am recommending readers of Financial Pages in Spain to get ADVANCED qualified advice and CAN and WILL recommend the RIGHT adviser.  EMail me to get the appropriate advice, on a personal basis.

I guarantee that you will be given only REGULATED advice, from an adviser with the CORRECT pension qualifications and very importantly, lots of experience IN SPAIN, if you contact me. Brief details by email are the best starting point, there is NO OBLIGATION and a guarantee of no up front charges.

There is lots more information before you can make up your mind and your questions WILL BE ANSWERED. Now is time to 'start the ball rolling'. REMEMBER, YOU have choices

 

David Goodall

Financial Pages in Spain

davidgoodall.spain@gmail.com

P.S. If your adviser doesn't consider alternatives to QROPS the you have the WRONG adviser!

Further Reading

Scam Watch Just say NO to cold calls

Professional Advice Always best

Foreign Exchange beating the banks on bank transfers!

BEWARE: Newspaper articles may NOT always be what they seem

UPDATE:

The advertiser writes the article, not a journalist, the content is then just a one company advertisement! 

Be careful, it's easy to be DELIBERATELY confused

Important

Any of you who have read my previous blogs will know how passionate I am about the importance that Expats take advice from a suitably qualified, experienced and regulated, independent financial adviser.

Believe all Newspaper articles and adverts?

The content is unbiased  and there to inform you? It is NOT!

A diligent reader of 'Financial Pages in Spain' sent me an example where newspaper content merges with an advert. As if that was not deliberately confusing enough, the content was biased and potentially dangerous. The UK outlawed investment advice from unqualified advisers many years ago. Indeed they increased the qualifications necessary to give advice! Remember that that's not just pure investment but the investment within a pension too

In addition, the writer's description of an Independent vs Restricted adviser was wrong! This means his knowledge of the financial services industry in which he works, is not very good.

Unqualified advisers constructing investment portfolios is dangerous and very risky for the client involved. The answer is Due Diligence to ensure you only get Qualified Advice

Due Diligence

As you may know, I am able to help Expats to find an adviser who is suitably qualified to advise them. I have a strict due diligence process and I would never send a consumer to an adviser until they pass my test.

In respect of the advert I was shown, I have carried out my due diligence on the advisers working for the firm and they are not a company that I would be able to refer my readers to for advice.

Other Experiences

I can write from both working in the financial services industry and many years experience in Spain. I know of many other examples that lead me to believe that this is rife in other businesses and is not limited to Spain. Social media as well as newspapers and magazines place the same type of 'adverts' disguised as comment or content. Maybe Governments do this too?

Conclusion 

You need to be very cautious of the firms, companies or individuals with whom you deal and take the utmost care

David Goodall

Financial Pages in Spain

Read every month by 13,000 Brits in Spain

Email

Facebook

Additional reading:

Qualified Financial Advisers

Readers’ Favourites

Hidden Costs & Charges

UPDATE: Scam Watch

BEWARE:
Cold calls encouraging a ‘Review’ of your pensions

The Financial Conduct Authority (FCA) in the UK started a TV advertising campaign about Scammers &'Free' Pension Reviews. Financial Pages in Spain advises that this is exactly how many scammers operate in Spain. The watch word is CAUTION

Be mindful that unregulated companies are cold-calling consumers to offer high-risk investment advice.

They are also sending emails, text messages and using online advertising. That was the warning in the UK but in Spain they also advertise in newspapers and it is often difficult to distinguish the regulated from the unregulated.

If you let me know, I can tell you if a company is NOT regulated. Just Email 

The aim of the 'review' is to encourage you to move money from an existing personal or occupational pension to a self-invested personal pension (SIPP) or a small self-administered scheme (SSAS).

The money is then typically invested in investments not regulated by the FCA, such as overseas property developments, forestry or storage units known as store pods.

Such investments can be enormously risky and can be difficult to sell and consumers could lose all the money they move, reducing what they have to live on in retirement.

And they also have less protection should anything go wrong and may not be able to complain to the Financial Ombudsman Service (FOS).  Again, also, the FOS does not cover advice in Spain.

The majority of companies offering the reviews are not authorised by the FCA, although some falsely claim they are acting on its behalf. Others claim to be working with the government following the Budget commitment in March to introduce a free advice service for people at retirement.

Please Note:

Financial Pages in Spain ONLY refers readers to regulated advisers. In fact I am more than happy to give you the FCA registration details of anyone I recommend. Feel free to email me to be recommended or I can check out an adviser you have concerns about. Email

Professionals

·         My doctor is qualified, works in a practice with other professionals and I trust him   without hesitation

·         The veterinary practice we take the dog to is qualified I even know where he     studied and that he is a specialist in small animal health

·         My solicitor who I have known for many years is qualified in both UK and Spain

·         I could go on but I’m sure you’ve got the message. For contact My Email

David Goodall
Financial Pages in Spain

Email

Facebook

The Finance Tour? Workshops? Seminars? BUT who's giving the Financial Advice?

Thinking of attending one? Did you think they were independent? Are the advisers qualified?

Please consider this BEFORE you attend

Important

Any of you who have read my previous blogs will know how passionate I am about the importance that Expats take advice from a suitably qualified, experienced and regulated, independent financial adviser.

Believe all Adverts?

So, when I saw the publicity for this  – The Finance Tour is the only truly independent investment and pensions seminar in Spain Really? I thought to myself, “this is something I should look at”. If 3 high profile product providers have come together to participate in an independent tour, this is something I must comment upon.

However, from my many years working in the UK, I know that product providers will never endorse one adviser over another, irrespective of how qualified or experienced an adviser might be.

I decided to investigate further. All 3 providers told me that they would never knowingly endorse one adviser. It's not in their interests!

Someone has gone to great lengths to make consumers believe that 3 product providers have come together to offer their expertise to British Expats in Spain, and to help them, they have invited one “Adviser” firm, chosen from the many that operate in that area. This gives the false impression that the 3 product providers are in some way endorsing that particular firm above all others. THEY DO NOT!

Due Diligence

Now, all the above might be fine if the adviser firm in question could pass my due diligence process but they don't!

As you may know, I am able to help Expats to find an adviser who is suitably qualified to advise them. I have a strict due diligence process and I would never send a consumer to an adviser until they pass my test.

I have carried out my due diligence on the advisers working for the firm in question and they are not a firm that I would be able to refer my readers to for advice.

'Financial Pages in Spain' averages over 13,000 readers per month

David Goodall

Financial Pages in Spain

Email

Facebook

Additional reading:

Scam Watch

Readers’ Favourites

Hidden Costs & Charges

Explaining Pensions Terms and Expressions

This is an alphabetical list which helps to cut through the jargon often used when discussing pensions.

Incorporates changes made from 6 April 2013

·       UK pension plans / schemes applicable to expats

·       ALWAYS Get a professional Adviser

·       Understanding QROPS & QNUPS

A Day
6 April 2006 was the day the UK Government pension simplification rules came into effect.

ASP - Alternatively secured pensions
At the age of 75 an alternatively secured pension would allow an individual withdrawal of income, similar to an unsecured pension fund such as income drawdown

Since 6 April 2011, no new ASP can be commenced but existing ones can continue until the next review date. The existing ASP fund can be transferred to Income Drawdown (Unsecured Pension) plan or an annuity commenced.

AVCs – Additional Voluntary Contributions
A pension top-up for an occupational pension scheme. The scheme members pay contributions into an arrangement run by the employer to boost the main pension.

FCA - The Financial Conduct Authority
The FCA has taken on the role previouslyundertaken by the FSA - the UK's financial services regulator. The FCA also ‘passports’ authorised advisers to operate in other countries. For a recommended adviser click here.

FSAVCs – Free-Standing Additional Voluntary Contributions
A pension top-up policy for an occupational pension, but separate from the employer’s pension scheme and normally run by an insurance firm.

FSA
The Financial Services Authority - was replaced by the Financial Conduct Authority (FCA) in April 2013

Group Personal Pension
A type of personal pension offered by some employers but not classified as occupational (see money purchase pension).

Lifetime allowance
This is a limit on the value of retirement benefits that you can draw from approved pension schemes before tax penalties apply. The Lifetime Allowance was £1.5m in the 2012/13 tax year but reduced to £1.25 million in 2013/14, from 6^th April 2013. Anyone whose fund is approaching or is already above these figures needs to act soon! Please email me

Lifetime annuity

A lifetime annuity converts money from a pension fund into pension income, which is taxable. There are different types to suit different circumstances and often treated more favourably for tax purposes in other countries.

Money purchase pensions
Some occupational pensions and all personal, group personal, stakeholder, FSAVCs and some AVCs are money purchase pensions. The contributions are invested in, for example, the stockmarket or bonds. The size of the fund depends on the contributions and how well the investments perform. At retirement, there is a choice of options to provide you with a retirement income.

Occupational pension
These are only available through employers and run by pension scheme trustees. There are two types – salary-related (defined benefit) and money purchase (defined contribution).

Pension Commencement Lump Sum (PCLS)
Though often referred to as ‘Tax-Free Lump Sum (see below), PCLS is more accurate as it MUST be taken as the first benefit.

Pension Liberation
Increasing numbers of pension savers are being targeted by unscrupulous companies encouraging them to access their pension savings early. This is commonly known as 'pension liberation' and has significant tax consequences. This is from HMRC Website

Personal pension
A pension policy taken out by an individual from an insurance company or another financial institution and into which personal contributions are made. It may also be offered by employers.

Protected rights pension
This is the part of a pension fund which was used to contract out of the UK State Second Pension (SERPS or S2P) that must be used to buy a protected rights annuity.

QNUPS -  Qualifying Non UK Pension Scheme, which means it meets the criteria set by the regulations the UK government brought out in February of 2010. This means that or a UK or non-UK resident, there is an opportunity to make contributions to overseas schemes, established as QNUPS, with the knowledge that those funds will be sheltered from UK IHT. Individual advice should be taken in all circumstances from a regulated and authorised adviser. Please email for a recommendation.

Q - Day
6^th April 2012 is the day on which fundamental changes to QROPS became effective.

QROPS - Qualifying Recognised Overseas Pension Schemes
These became available from A-Day. It is a pension scheme set up outside the UK that is regulated and recognised for tax purposes as a pension scheme in the country in which it is located. The QROPS planholder and the QROPS policy don’t have to be in the same country and this is almost always an advantage. QROPS have been established in various countries across the world, many in jurisdictions with beneficial tax rules. QROPS can now also be established with similar rules to SIPP (please see below). For specialist advice click here

Salary-related pension scheme (final salary or defined benefit)
A type of occupational pension. The amount of pension you get is worked out on your salary at or near retirement, or when you left employment, and your pensionable service.

Self invested Personal Pension (SIPP)
Essentially the same as a Personal Pension described above. However, with a SIPP the individual can exercise discretion over the investment policy, subject to the rules of the SIPP provider. This should always be done with professional guidance and if you want access to a specialist, please Email me

Stakeholder pension
A type of personal pension that has to meet certain standards set by the UK Government. An individual can take one out or it may be available through an employer, but is not classified as occupational. 

State Pension
The UK Pension Service (part of the Department for Work and Pensions) will pay the basic State Pension based on an individual’s National Insurance contribution record. In addition, individuals may also qualify for the State Second Pension based on their own earnings and National Insurance contributions.

State Second Pension
The State Second Pension is an additional State pension paid on top of your basic State Pension. This was called SERPS. Self-employed people cannot build up a State Second Pension.

Tax-free lump sum
An amount of cash set by tax law which you can take at retirement free of tax. Salary-related occupational pension schemes may have different rules on the amount of tax free cash you can take. This is only tax-free to UK residents. Tax-free cash should correctly be called ‘Pension Commencement Lump Sum’ (PCLS) since it can only be taken as the first benefit from a pension Plan

Unsecured Pension (Income Drawdown)
This is an alternative to buying an annuity but provides an income whilst the pension is still invested. At age 75, the unsecured pension must cease and be replaced by either a Lifetime Annuity or ASP. For non UK residents or those intending to become non-resident, QROPS could be another alternative.


Pensions Advisers, including the ones that I recommend, will be happy to cut through the jargon. Email me for a recommendation

Additional Posts

QNUPS
http://expatsfrombritain.blogspot.co.uk/2012/07/qnups-qualifying-non-uk-pension-schemes.html

QROPS
http://expatsfrombritain.blogspot.co.uk/2013/06/qrops-comparing-jurisdictions.html

UK Pension Plan but you live in Spain
http://expatsfrombritain.blogspot.co.uk/2011/08/uk-pension-scheme-or-plan-but-you-live.html

David Goodall

Financial Pages in Spain

Email: davidgoodall.spain@gmail.com

UK Autumn Statement 2012

From a Spanish perspective

There are many expats, especially pensioners and expat workers, in Spain who have a close vested interest in the UK Economy. There will be much more analysis over the coming days but I thought an outline summary would help.

If you would like a professional analysis from UK economists please email me and I’ll give you the link.

• Many pensioners in the UK & Spain with Income Drawdown or QROPS have their income determined by ‘GAD’ rates. These are increased from 100% to 120% from April 2013 which is the reverse of his previous policy. To review your individual circumstances please email me. The gentleman is for turning!

• Two measures will make QNUPS (Qualifying Non-UK Pension Schemes). Details http://ukoverseaspensions.blogspot.co.uk/2012/09/qnups-qualifying-non-uk-pension-schemes.html

Firstly, the ‘Lifetime Allowance’ which is the maximum that anyone can hold in a Pension Plan, is being reduced from £1.5 million to £1.25 million. This doesn’t affect huge numbers but when interest rates are so low its like reducing peoples pensions.

Secondly, the annual amount which any UK taxpayer can put in their pension scheme is reduced from £50,000 to £40,000.

If this might affect you or you want information, please email me

• Clamping down on tax avoidance and evasion which "I view as morally repugnant" as Mr Osborne put it. He ought to read my post! http://expatsfrombritain.blogspot.com.es/2011/04/tax-avoidance-and-tax-evasion.html  Like most politicians and journalists, he doesn’t help to clarify the difference

There are many other facets to the Autumn Statement and much of it is economic analysis but I wanted to publish the key details quickly. If any other factors come to light, later, I will produce an update. It could be worth putting this in your favourites and checking.

If you have any specific queries, please email me.

David Goodall

Financial Pages in Spain

Email: davidgoodall.spain@gmail.com

August 2012 Review – Financial Pages in Spain

On 9^th August 2012, the blog celebrated it’s second anniversary. At the end of the calendar month, I thought I would reflect on the main issues and topics on ‘Financial Pages in Spain’ during August.

• UK Pension Schemes

• QROPS

• QNUPS

These are the issues that contributed the most feedback. I’m always pleased to receive emails either to seek further advice or to comment on my articles.

Using the statistics provided by my service contractor, I can also indicate the most popular posts in terms of the number of people who visited the pages. They were, in order;

1. QROPS – Comparing Jurisdictions

      QROPS (Qualifying Recognised Overseas Pension Schemes) are set up to allow a transfer of UK pension rights, abroad, with the full approval and authority of the UK Tax Authorities (HMRC).

      QROPS - comparing jurisdictions

      QROPS changed significantly from 6^th April 2012, when the UK Tax Authorities (HMRC) altered the rules. The major jurisdictions are now Switzerland, Malta and New Zealand. The new rules have highlighted the need for professional advice. I only recommend fully authorised advisers. Email me for an introduction.

2. QNUPS – Qualifying Non-UK Pension Schemes

QNUPS were brought about in 2010 in a UK Statutory Instrument called ‘The Inheritance Tax (Qualifying Non-UK Pension Schemes) Regulations. I think it’s important to highlight that because although QNUPS are and must be seen as Pension Schemes, they are often set up alongside Inheritance Tax (IHT) planning.

QNUPS

I was pleased, during the last month, to have my article, in full, repeated by a UK lawyer based in Spain and by a UK SIPP specialist. In order to receive the required specialist advice, please email me.

.

3. UK Pension Scheme or Plan but you live in Spain

Expats with pensions often believe that they are ‘stuck with’ the rules as they understood them in the UK. This post deals with alternatives. Overseas Pensions come in many guises. For example, there are QROPS, QNUPS, International Annuities and Section 615. The first step, however, is to understand what you have got.

UK Pension Schemes

Write me an email , tell me what type of scheme you’ve got and I’ll make sure you are given the right fully authorised advice.

* * * * * * *

Financial Pages in Spain continues to grow, as I can see from the statistics. Whilst Spain and UK dominate the views of both the Website and Blog, there have been readers from 41 other countries including New Zealand, Malta and Switzerland, which is easy to explain but also the USA and Canada!.

Any issues which arise can be answered on an individual basis if you email me. I’m happy to receive questions from anywhere but my real expertise relates to the UK and Spain.

I am happy to take suggestions from readers about future articles. Please email me with your own ideas or issues that you think need raising.

David Goodall

Financial Pages in Spain

davidgoodall.spain@gmail.com

Why invest offshore?

Offshore investment can be an important component of wealth and asset protection planning. This is a financial tax planning process but NOT tax evasion

Offshore financial planning is much more open than used to be the case and still has many advantages. This is especially true with the use of Trusts.

·         Not for tax evasion

·         Lost faith in British & Irish Banks. Never had faith in Spanish Banks!

·         Strategic financial planning

The term “offshore” originally comes from financial institutions located offshore from UK in the Channel Islands, but is now used figuratively to refer to banks in many regions, particularly Bermuda, the Cayman Islands, Bahamas and politically neutral European jurisdictions such as Switzerland. The Channel Islands, however, remain key offshore centres of excellence.

Individuals or organisations (including companies and businesses) may be interested in placing assets offshore for a variety of legitimate reasons, including:

1. The existence of a sophisticated infrastructure of financial institutions and professional service providers (lawyers, accountants, corporate services, etc). This is particularly true of Jersey and Guernsey where most of the financial services professionals will have trained in the UK

2. Tighter government regulation in the region in which the financial institution is domiciled. This may allow for a relatively favourable investment environment as compared to onshore.

3. Access to politically and economically stable jurisdictions. This may be an advantage for individuals who lack faith in the financial institutions in their ‘home’ country. After experiences of the last few years many British and Irish people might have lost faith in Banks. Then, of course, Spanish Banks really are something else!

4. Tax neutral.  Having no added local tax burden is a useful advantage for individuals who are not obligated to pay tax on worldwide income, or who may be able to defer taxation.  It also allows individuals to structure their assets without having to worry about local tax complications. This suits many expats.

5. As part of estate and/or asset protection planning. Another advantage for expats.

6. Broader "global" view than often found with onshore institutions.

7. Strong privacy and confidentiality laws to help protect depositor's interests but not Tax evasion.

Financial Pages in Spain can introduce you to these services but will NOT provide the advice. Only fully licensed, regulated and authorised advisers will ever be recommended.

Before considering any offshore investments you should carefully decide you objectives and what you are trying to achieve. The expertise in giving you advice needs to be at a high level. I can recommend advisers with the expertise, if you email me. You might therefore also like to read my previous post which covers getting good advice.

Tax Evasion Warning

Individuals with non-legitimate intentions may also seek to do business offshore, just as they do onshore, incorrectly assuming that their activities may be more likely to be overlooked or found acceptable. This of course is tax evasion and is illegal. The only advice I can offer such individuals is to make themselves legal and legitimate! Use an authorised and regulated adviser that I will be happy to recommend to you if you email me

Please see http://expatsfrombritain.blogspot.com/2011/04/tax-avoidance-and-tax-evasion.html

In addition, it may be helpful to read a post on Savings and Investments, which could easily form a part of the process outlined above; http://expatsfrombritain.blogspot.com/2012/03/tax-efficient-savings-for-expats.html

You can write to me with your personal experiences or to be put in touch with my recommended adviser by sending me an email

davidgoodall.spain@gmail.com

David Goodall

Financial Pages in Spain

Getting a Second Opinion

I have been finding for sometime that many people come to me for a ‘second opinion’. For QROPS, QNUPS, UK Pensions, Investments, they are unhappy with the advice they have been given and send me examples.

Rather than guesswork people also ask me to recommend Accountants, Lawyers, Surveyors and other professionals.

Some of the things people have said to me:

• ‘ It  looked like a mass produced QROPS report with just my name and personal details changed’

• ‘ They wanted an up front fee even to talk to me, funny they never mention that in their adverts’

• ‘ I wasn’t convinced the advice was correct’

But they trust ‘Financial Pages in Spain’ and I am receiving comments which show a great deal of respect.

I’ll try to help. Email me

Can you help me to help you?

• Please send me both good and bad examples of reports you have received, from financial advisers, I’ll respect your privacy
• Tell me the names of Advisers who refuse to disclose commissions
• If the fees, charges and commissions are hidden in a report and not openly disclosed, please send examples

This sort of information will help everyone and help eradicate some of the greedy practices.

I may not have intended it when I started out but it seems that Financial Pages in Spain is becoming the respected second opinion.

* * * * * * *

Whatever your query, please write to me. My email is on this link

David Goodall

Financial Pages in Spain

davidgoodall.spain@gmail.com