In April, 2006. HMRC approved QROPS. Anyone who has worked in the United Kingdom(UK), can transfer their pension benefits to another overseas pension scheme, which shall be recognized by HMRC. A list of ROPS is published every two weeks. Please refer to the link below.
For more details please feel free to contact us.
HDFC Life Guaranteed Pension Plan
HDFC Life New Immediate Annuity Plan
HDFC Life Pension Super Plus
HDFC Life Personal Pension Plus
HDFC Life Single Premium Pension Super
Out of the above 5 plans, two plans are suitable, depending upon your age and retirement needs. If you are looking for an immediate pension, then HDFC Life New Immediate Annuity Plan will be suitable. Guaranteed pension for life and capital refund for the nominee. Pension will be given at a rate of 7.5% to 8.23%, depending upon the option you choose.
If you want to transfer your UK Pension Fund to India however want to deffer your pensions until your retirement age (for ex. 60), then HDFC Life Single Premium Pension Super will be ideal for you. Your money gets invested in this plan and grows as per the fund performance. At the time of retirement, you can withdraw upto 33% lumsum as tax free and remaining amount will be used to get pensions through annuity plan.
For more details please feel free to contact us.
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https://www.gov.uk/government/publications/list-of-qualifying-recognised-overseas-pension-schemes-qrops/list-of-recognised-overseas-pension-schemes-notifications
The major reasons why people started considering ROPS, rather than keeping their pension pot or pension benefits in the UK.
- Get rid of heavy UK Tax. ROPS are independent of UK Tax Laws.
- Early retirement age: In UK Pension Schemes, one can retire at 60 years or more. Many schemes allow retirement after 65 years. Where as in ROPS, one can retire at 55 years.
- In UK Pension Schemes, spouse gets half of the pension and there is no capital refund for the children/nominee. In ROPS, the spouse gets the same amount of pension and nominee can get the entire corpus refunded back.
- One of the major reason for the popularity of ROPS is zero death / inheritance tax, which 55% In UK pension Scheme.
- As per statistics, more than 70% of UK Pension Schemes are in deficit. It is not guaranteed that one will definitely get the pension benefits, which has been promised by your current pension provider. One can look at examples of Greece and Spain.
There are further, many more reasons why ROPS will win over UK Pension Scheme, such as :-
- Transparency of charges.
- Flexibility to invest in different asset classes.
- Better growth.
- Upto 30% lumsum Tax Free at the time of retirement.
- Online access and control over your investments.
So if you have worked in the UK and have got a pension scheme, you must consider transferring it to a ROPS at the earliest.
What, are the options you have. It is a misconception that one needs to transfer the UK Pension Scheme to a ROPS established in their country of residence. For example, if you have worked in the UK and come back to India, it is not necessary that you need to choose a ROPS in India. It completely depends upon your retirement needs, your current age and your future goals, which ROPS you shall choose.
Indians can choose the following options :-
Overseas ROPS :-
ROPS Jurisdictions : Gibraltar, Malta, Isle of Man.
Trustee Options : STM, Sovereign, Castle, Momentum.
Investment Options : Skandia
International, Royal London 360, Cornhill Management.
Indian ROPS :-
HDFC Life – Pension Plans.
Max Life - Forever Young Pension Plan.
Exide Life – Golden Years Retirement Plan.
Get an independent and unbiased advice on ROPS with no obligation
For more details please feel free to contact us.
Contact Us : contact@qrops-adviser.in
Saurav Dutta (consultant) :Ph +91-9891910578.
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Overseas ROPS - How it Works?
Your Pension provider will release the CETV(Cash Equivalent Transfer Value) to the established trustees based in Malta, Gibraltar, Isle of Mann, such us STM, Castle Trust, Sovereign etc.These are known as international tax heavens. Your money is not invested in these countries. These jurisdictions are used by the companies to get tax relief.
Next step - The trustee will release the money to the Fund House chosen by you. for example : Skandia International, Royal London 360, Cornhill Management etc. These are some of the internationally renowned fund houses.
You get an open option to invest into Shares, Mutual Funds, Bonds, Fixed Income, ETFs etc. depending upon your own risk profile. Here you can choose and change your investments from time to time.
Further, you also have the option to invest in different currencies like USD, GBP, EUR, YEN etc. hence you get the advantage of rupee depreciation. As you already know rupee depreciated against pounds by 26% in last one year.
At the age of 55 years, you will be able draw up-to 30% of the total fund as tax free and rest 70% you can buy an annuity plan to get the pensions or you can start a pension draw down from your fund itself. You can also transfer the entire fund to an annuity plan in India.
ROPS in India
As per HMRC list of ROPS, HDFC Life has registered five Pension Schemes in October 2013.
HDFC Life Guaranteed Pension Plan
HDFC Life New Immediate Annuity Plan
HDFC Life Pension Super Plus
HDFC Life Personal Pension Plus
HDFC Life Single Premium Pension Super
Out of the above 5 plans, two plans are suitable, depending upon your age and retirement needs. If you are looking for an immediate pension, then HDFC Life New Immediate Annuity Plan will be suitable. Guaranteed pension for life and capital refund for the nominee. Pension will be given at a rate of 7.5% to 8.23%, depending upon the option you choose.
If you want to transfer your UK Pension Fund to India however want to deffer your pensions until your retirement age (for ex. 60), then HDFC Life Single Premium Pension Super will be ideal for you. Your money gets invested in this plan and grows as per the fund performance. At the time of retirement, you can withdraw upto 33% lumsum as tax free and remaining amount will be used to get pensions through annuity plan.
Please refer to the Example for HDFC Life - ROPS, under this blog.
Option 1 : HDFC Life New Immediate Annuity Plan
Note: Please refer to the brochure for charges and other details.
Mr. Kumar, is 57 years old, worked in the UK for 8 years, accumulated a pension pot of £100,000. He wants to retire in India, hence he transferred his pension to HDFC Life New Immediate Annuity Plan. The amount got converted to Indian Rupees. Considering an exchange rate of £1= Rs 100. This amount became Rs 1 crore.
One time govt. service tax of only 3% deducted and rest Rs 97 lacs got invested in the plan. Mr. Kumar started getting pension of Rs 7,80,000 p.a. This amount is fixed and guaranteed for lifetime, there after Mrs. Kumar will receive the same amount of pension, throughout her life. The capital of Rs 97 lacs with we refunded back to their nominee.
Note : There are other options available in this plan, please refer to the product brochure for details.
Option 2: HDFC Life Single Premium Pension Super
Mr.Gupta, is 47 years old, worked in the UK for 10 years and now working in India. He has got a pension value of £100,000. He wanted to transfer this fund to India, however did not want to take immediate pensions. Hence he transferred his pension fund to HDFC Life Single Premium Pension Super. The amount got converted to Indian Rupees. Considering an exchange rate of £1= Rs 100. This amount became Rs 1 crore.
He choose a policy term of 10 years, hence his money will grow as per the fund performance. Assuming a net average interest 7.5% p.a., Dr.Gupta will have a corpus of Rs 2 crore, at the age of 57. He will be able withdraw upto 1/3rd of the amount as tax free and the remaining 2/3rd will be transferred to HDFC Life New Immediate Annuity Plan, through which he will start getting his pensions (refer option 1).
As an independent QROPS adviser we
offer the following services to our clients.
- Free valuation of your UK Pension Scheme.
- Help you to choose the right scheme
- Help you to choose the right scheme
- Complete paperwork and documentation.
- Send documents to the UK.
- Successful transfer of your funds to ROPS.
- Quarterly review of your ROPS Scheme.
Please contact me for further details on other schemes under ROPS.
Please contact me for further details on other schemes under ROPS.
Get an independent and unbiased advice on ROPS with no obligation
For more details please feel free to contact us.
Contact Us : contact@qrops-adviser.in
Saurav Dutta (Financial Consultant) :Ph +91-9891910578.
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