Other than a house or business, few people own other assets that come anywhere near the value of their pension funds.
Yet many pension investors considering a QROPS transfer are more than willing to take advice from a so-called expert who has scant experience in the market in the vain hope he or she can offer tax solutions that are unavailable elsewhere.
That term 'tax solutions' probably involves some dubious and unethical advice hints at taking huge amounts of tax-free cash from a QROPS.
The fact is these tax solutions do not work.
QROPS pensions have an intricate and complex structure of checks and balances supervised by HM Revenue and Customs and financial regulators that ensure all pensions meet a minimum standard.
Find a professional and experienced QROPS advisor
Those standards disallow a provider paying more than 30% of the transferred fund as a tax-free lump sum - and any adviser who tells a would-be QROPS investor they can take more is less than generous with the truth.
In some cases, like the new Isle of Man 50c enhanced QROPS, investors might draw more tax-free money on any increase in the pension fund since the transfer.
Another risk area for QROPS transfers is the fees charged by advisers that can sometimes be as much as 8-12% of the fund value.
Any sensible investor dealing with a pension pot of tens of thousands of pounds would take advice from a professional and experienced consultant working for a firm with a successful track record in QROPS pension transfer.
Doing so removes risk and the stress of gambling with your financial future by taking advice from someone without any come-back. If you make a mistake that is uncovered by HMRC, you could pay up to 55% of your original transfer fund value in tax and penalties that would wipe out years of savings.
The truth is out there - all you have to do is find a reputable firm to take you through the Qrops transfer process. The leading Qrops firm is Qrops.net
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