After a year of flux in 2013 with changes in QROPS jurisdictions from Guernsey to Singapore, 2014 promises to be a bumper year for the Qualifying Recognised Overseas Pension Scheme industry.
The biggest story of 2013 was probably the ROSIIP case which QROPSreview.com reported on extensively. This landmark case likely marked the point where HM Revenue & Customs accepted a position of increased protection of expats holding QROPS.
The United Kingdom Courts ruled decisively in favour of consumers and the HMRC were forced into an embarrassing climbdown.
2013 was the biggest year yet in terms of both the number of expats taking advantage of the many benefits of transferring their UK pensions overseas but also the value of the funds transferred.
Many advisers also report a broadening of the types of individuals deciding on an overseas pension transfer. While there has been a common misconception that these types of offshore financial products are the exclusive reserve of High Net Worth Individuals (HNWI), 2013 saw ever more modest pensions being transferred reflecting the changing nature of the expat community.
As people become more educated about the merits of QROPS including the security on offer QROPSreview.com believes that 2014 will be the biggest year yet for overseas pension transfers.
More and more Independent Financial Advisers are recommending the product to expats leading to a wider universe of choice for those interested in the schemes. However, the process can be complex so an IFA that is experienced in QROPS should be consulted.
QROPSreview.com also expects the number of jurisdictions offering QROPS will expand as countries seek to take a slice of the ever expanding market. However, it should always be remembered that the correct jurisdiction is the one that suits the individual’s needs the best rather than simply where someone happens to be living at that time.