Why QROPS Advice is Essential for UK Pensions

5 January 2016


Getting expert QROPS advice could potentially save you thousands of $$$ on your transfer - click here to see how.

If you decide to transfer a UK pension without seeking specialist QROPS advice (or with assistance from your accountant or financial adviser) you could risk incurring greater costs overall (unless your accountant/adviser is also a QROPS expert).  Nik Hayes(above), a UK Chartered Accountant, now living in Australia, explains why he sought expert QROPS advice for his own transfer, despite having substantial financial expertise himself.

For most, the risk of higher costs and/or potential penalties is too high. As Nik Hayes so eloquently states in this video, let the experts handle the complexities of QROPS and the tax calculations for you.

Experience has proven that people who do not seek QROPS expertise for their transfer:

  • may overpay on tax (in particular for Defined Benefit scheme transfers) on the 'applicable fund earnings' calculation
  • often lose out on a poor 'retail' exchange rates (if not retaining GBP) - Sterling Planners have access to institutional (wholesale) Fx rates and pass these benefits in full onto our clients.
    •  click here  for a 2016 client case study illustrating how one client gained AUD$16,000 in favourable Fx rates - this saving was greater than our transfer fee, therefore this client actually gained more money on the transfer than it cost them, by utilising our services.
  • risk an 'unauthorised payment charge' (up to 55% of the total transfer value), dependent on how you structure your benefits beyond the initial UK pension transfer. 


IMPORTANT NOTE: Your Australian Superannuation Fund is not responsible for ensuring your transfer is compliant [i.e. complies with all the UK QROPS/ROPS rules or the Australian ATO tax rules]. In addition, HMRC do not guarantee that transfers to schemes on the ROPS list will be free of tax. It is your responsibility to find out whether you have to pay tax on any transfer of pension savings.

Sterling Planners are arguably one of the most experienced, reputable UK pension transfer specialists in Australia. Our two senior Advisors have over 23 years of combined experience with UK pension transfers. We offer a comprehensive transfer Statement of Advice, allowing you to make a fully informed decision about whether or not a UK transfer would benefit you financially.