There are many trustees available. Each pension needs a trustee as part of HMRC requirements. Thus they cannot be escaped or avoided and serve a purpose. Make sure you understand the trustee fees. Typically, the trustee fees will be £1,000 p/a for a QROPS, ROPS or QNUPS. £300 – £500 for a SIPP.
Fees and charges
Often not explained properly or understood! Overall not the biggest issue I see. Mostly 1.2% for 8 years or 1% for 10 yeats is the maximum you will see or find. In comparison vs the UK where charges are normally 1% for life. Thus charges stopping after 8 years, will work out cheaper in the long term if in the […]
What issues do people have that have transferred their pension?
The biggest complaints are high fees and fund performance. The principle of transferring your pension can still be good advice. What happens after you transfer your pension is just as important as the decision you make when you transfer your pension in the first place. Even if you transfer your pension for the all the right reasons you can still […]
Shall I transfer my UK pension?
In short it used to make perfect sense for most expatriates to transfer their pension to a QROPS. The benefits would usually outweigh the potential downside if managed well. This landscape has changed over time as HMRC has eroded many of the benefits of transferring your pension. Make sure you conduct a full analysis and understand both the positives and […]
What are the provider and product names?
Some of the most popular and widely sold names are: Friends Provident International Reserve Investment Bond Friends Provident Summit Bond Friends Provident International Zenith Generali Worldwide Choice Account Generali Worldwide Professional Portfolio Bond Hansard International Capital Investment Bond Old Mutual (used to be called Skandia) Collective Investment Bond Old Mutual (used to be called Skandia) Collective Redemption Bond Old Mutual […]
Are there additional outsourced costs for investing?
Some firms outsource the investment management to specialist fund management companies. This can give piece of mind to the investor as sadly most offshore advisors do not hold the relevant qualifications to give investment advice! I would ask what qualifications each advisor has when you meet them. Yet you do pay the price for this service. A specialist fund manager […]
Are there tax implications for surrendering?
This depends on where you reside during the time of the plan. If you come out early 9/10 you have no profit to declare or therefore be taxed for. So coming out early normally has no tax implications. We can also study this for you. Even refer you to tax advisor if applicable.
Are there some circumstances when you should continue to contribute?
Yes. If you are 90% through the investment term if will almost always be best to complete the plan. Yet if only 10% through the plan you may have a chance to get out before it is too late. Again this will need careful consideration and study to make sure you make the right decision in effect the second time around. […]
Do all plans work the same way?
In short yes. Each company will in effect hide their charges with bonuses and marketing allowances. Side by side there is not much difference between the plans. One will give a bigger bonus here to hide a higher fee there. There are subtle differences that can make a big difference. If I can make sure the plan is the most […]
Can I lose all my money if I stop contributing early?
Typically, these savings plans have an 18 month `indemnity period`. This translates to the fact that if you stop contributing during the initial period you will lose all your hard earned money. If you stop contributing after 18 months, it is a common misconception that you will likely lose all your money. In reality your investment will be eaten up by the […]