A Rise in the Number of QROPS Pension Transfers in 2018-19
Her Majesty’s Revenue and Customs (HMRC) has recorded an increase in the number of individuals that have transferred their pensions to a Recognised Overseas Pension Scheme (QROPS) in the 2018-19 financial year. The released data shows that there has been a 6% increase in the volume of transfers out of registered UK pension schemes, a total value of £640 million.
This jump in the number of transfers to QROPS is an amid a wider defined benefit pension transfer boom, which has seen over 200,000 transfers, up from 100,000 in the previous year. £34 billion has been moved out of defined benefit pension schemes in the past year and with record transfer offers, more flexible and tax-efficient pensions, this trend is yet to slowdown.
However, with this recent announcement, it may bring into question the values of workplace defined benefit pensions. For those remaining in defined benefit pension schemes, there may be a possibility that their workplace pension scheme has experienced a drop in value. This could in part be due to the number of people opting to transfer out of their pension at record high values. The UK’s defined benefit pension schemes currently have a £120 billion shortfall. There is also the added risk of the workplace/employer that offers the final salary scheme becoming insolvent.
If you have been thinking about transferring out of your UK-based pension, or are just after more information or advice, we can help you with that. New Zealand based Ranfurly Strategic offer a listed Superannuation Scheme, as well as an agent that can assist you through the transfer process, prepare transfer forms, and assist in obtaining the required UK and NZ advice that you need. The Ranfurly Scheme is listed on the UK Government Recognised Pension Schemes List.
With Ranfurly, be closer and in more control of your money and be assured knowing that your pension is backed by award-winning investment groups.
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