QROPS Popularity. How Many People are Transferring to QROPS
QROPS popularity. If you have ever worked in the UK and are living overseas or intend to retire abroad, a QROPS pension transfer may hold the key to your investment freedom and ability to avoid UK taxes on your pension.
BBC conducted a Brits Abroad Project in 2006. It is estimated there are 5.5 million British expats and 1.4 million foreign nationals in the UK. So, there may be 8m people who could take advantage of a pension transfer into a QROPS today. QROPS poularity is set to continue in the face of rising taxes in the UK.
Brits and foreign nationals returning to their home countries after having worked in the UK, have transferred over £1.3bn in pension assets overseas since 2006, according to estimates by Close, the QROPS trustees based in Guernsey.
The number is based on data from the UK’s Office of National Statistics as well as other sources, such as UK SIPP provider AJ Bell who did a study in 2008. QROPS poularity is set to grow.
QROPS Poularity. Statistics
QROPS popularity and QROPS statistics.
There had been no official data available to the public about QROPS, since “A-Day” in 2006, as the UK Government never released any statistics.
QROPS Popularity. The new statistics provided by Close assumes the size of the potential QROPS market to be £575bn. Although, roughly 30% already hold annuities and cannot transfer into QROPS.
The largest QROPS pension transfer has been around £20m according to Close with the average pension pot transferred being around £200,000 to £250,000
QROPS Popularity. Size of the QROPS Market
If you use the estimated £575 billion as a benchmark and figure only £1.3bn has been transferred so far, the suggestion is the QROPS industry is still far from its peak. QROPS popularity looks set to soar for the foreseeable future, as an ageing poulation and increasing taxes puts a huge strain on the average UK pension. QROPS popularity is bound to increase with future taxes in the UK likely to increase due to the financial crisis, ageing population, better medical treatment, rising debt and lower tax allowances. Especially for higher rate tax payers, whose personal allowance for income tax will be wiped out over the coming years. QROPS popularity will likely increas in the years to come.
In order to get QROPS specialists advice, please send your enquiries to firstname.lastname@example.orgQROPS Popularity. Are QROPS Popular? by Richard Malpass