UK pension rules are undergoing a major revamp as the government realises that the cost of funding pensioners is simply unaffordable for the country.
New rules mean the default retirement age of 65 years old is scrapped, along with financial straitjackets for the retired - including the requirement to buy an annuity with a pension.
For QROPS and QNUPS investors, the rules remain broadly the same.
Expats have not had to buy an annuity with their QROPS or QNUPS and are generally wealthy enough not to have to worry about retiring at 65.
In line with other registered pension schemes, retirement savers can generally draw down on their funds from when they are 55-years-old, or earlier if they are medically retired.
Other more complicated pension rules that affect lifetime allowances and contribution levels are also due to come in to force from April.
QROPS and QNUPS unaffected by UK pension changes
Again, most QROPS or QNUPS offshore pension transfers fall outside of these rules as well.
Transfers in to QROPS are not considered contributions and do not attract tax charges if they breach LTA or contribution limits.
The main point for anyone to consider is the default retirement age bears no relation to the age when a pension saver can start drawing down benefits from their QROPS.
Retiring at 65 years old was a convenient age set by actuaries in the US before the Second World War because many workers at that time would not live too long after their 65th birthday. The UK government picked up the age after the war when establishing the State Pension scheme.
Now, because people are living longer and are generally more active in to their 70s, the government has decided to scrap the barrier.
The age included in the Qrops provider's terms and conditions determines when the scheme can pay out and this is linked to other UK pension legislation that sets the age of 55. These rules are not expected to change in the foreseeable future. Contact the leading firm QROPS.net for more information
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