QROPS Complaints | How We Can Help
If you have transferred your pension into a QROPS (Qualifying Recognised Overseas Pension Scheme) and are now facing some challenges and regrets, you’re not alone.
Over the past decade, changes in pension laws have left many expats dissatisfied with their choice to move to an overseas scheme.
Fortunately, we are here to help you manage and mitigate some of the difficulties you may be facing with your QROPS.
Key Issues With QROPS
Many UK expats initially opted for a QROPS to avoid the Lifetime Allowance charge on UK pensions, which was a tax targeting pension pots exceeding £1 million. For years, QROPS was an appealing way to bypass this substantial levy, but things have now changed. The Lifetime Allowance charge was abolished in 2023, which means that the primary reason that so many chose to move their pension out of the UK no longer exists.
Another key consideration is the Overseas Transfer Charge. You can incur a 25% charge on your pension if certain conditions are not met when it is transferred. A detailed criteria of which can be found here.
Sadly, these circumstances have left many UK expats feeling trapped in expensive and now seemingly unnecessary overseas pension schemes.
The Hidden Costs
At The Wealth Genesis, one of the most common complaints we hear is how high the fees associated with QROPS are. These fees can prove to be significantly higher than if you were to leave your pension in the UK or transfer it to an International SIPP (Self Invested Personal Pension.
The most common are setup and ongoing commissions that are paid to your offshore adviser. These are paid out by the Investment Bond and fund providers and result in high ongoing fees and exit penalties / surrender charges. In simple terms, any money paid out by the product or fund providers needs to be made back. As a result, the fees are built into the ongoing management costs which result in a significant drag on performance. Often, removing any growth the investments have achieved.
As the commissions have been paid out to the adviser, should you wish to leave the product, there are surrender charges to ensure they do not lose money.
How We Can Help
Perhaps you feel that you were mis-sold a QROPS or received poor advice, and that there is now no way out. Fortunately, there are various options available to you.
Here is how we can help:
Transfer QROPS Back To A UK Pension Scheme Or International SIPP
Depending on the providers, structure and policy start date we can transfer your pension back to an International SIPP. This in turn can reduce the fees by up to 80%, whilst gaining the protection and regulation of the FCA Financial Conduct Authority and FSCS Financial Services Compensation Scheme.
Taking Over the Management of Your QROPS
We can step in and take over the management of your pension scheme. Upon reviewing your existing investments and structure, we can rebalance the portfolio to improve performance and better align with your needs and objectives.
Reducing Your QROPS Fees
Whether it is transferring to an International SIPP, replacing the offshore bond with an FCA regulated investment platform or reallocating your investments, we can reduce or remove the high costs of your QROPS, saving you money in the long run and significantly improving performance.
Wealth Management For Expats
At The Wealth Genesis, we are committed to providing independent financial advice without any hidden fees, sales or agendas.
We understand the challenges expats face when it comes to finances and can create a tailored plan aligned with your unique circumstances and financial goals.
If you’re paying too much for your QROPS, now is the time to explore your options, regain control of your pension and protect your wealth.
