Guardian Wealth Management invites you to download your FREE copy of our QROPS versus SIPPs guide
We’re faced with many different choices when it comes to retirement planning and pensions, and for those who live outside of the UK or are intending to retire abroad, gaining an understanding of the differences between SIPPs and QROPS is essential in order to make the right decision.
While there are some similarities between SIPPs and QROPS, there are some integral differences that need to be understood too. SIPP stands for Self Invested Personal Pension, and in reality a QROPS is a type of SIPP. Both of these pension options allow you to pay or transfer funds into them and offer some degree of investment flexibility. Generally, a QROPS is more suited to people who are intending to leave the UK on a permanent basis – conversely, a SIPP can be held while you live away from the UK and be flexible should you have the intention to repatriate.
If you choose to invest in a SIPP as a UK resident, you will be entitled to tax relief on your contributions. Also, SIPPs tend to be less expensive to enter than QROPS, despite the general reductions in QROPS costs. In essence, a SIPP is the ideal pension choice if you wish to enjoy flexibility over your investments and retirement income options and stay in control of your money. However, for those with significant pension savings, a QROPS is not limited by the UK lifetime allowance, which is currently £1.25m, and can offer much improved tax efficiency on death post-retirement.
Whether you ultimately decided to go for a SIPP or a QROPS, professional advice from an experienced and knowledgeable financial adviser is essential, as this is a highly complex area of planning and the advice will be specific to your circumstances and needs, both now and in the future. Your financial adviser can help you to build and rebalance your pension investments, and ensure they work best for you, both in terms of investment growth prior to retirement, and income flexibility through retirement. If you’re working abroad, your salary may be higher than an equivalent position in the UK – with a private plan, you may add this excess income or any bonuses to your pension pot, with the option to reduce your contributions when you return to the UK.
If you’d like to talk to one of our financial advisers, to find out whether a QROPS or a SIPP will best suit your needs, please feel free to contact us via the link.
Guardian Wealth Management – the best advice for QROPS and SIPPs
Here at Guardian Wealth Management, our independent financial advisors are experts in all types of pensions – and as one of the leading sources of advice for QROPS and SIPPs, we’re here to help you make the very best decisions, helping you to achieve the retirement that you dream of.
While you always have the option to speak directly to one of our advisors, our FREE QROPS versus SIPPs guide will give you a fantastic overview of your options, giving you the opportunity to think about the questions that you may want to ask us.
Our free guide will talk you through your investment options, tax liabilities and benefits, what to do if you’ve already got a pension and will offer some honest and impartial advice to help you understand the world of SIPPs and QROPS.