Published on: 03/14/16 06:17:pm
The financial world is ever changing, with different legislations and regulations popping up seemingly every other day. As it is, ignoring and putting off pension planning, in this financial environment, is never the smart idea. Indeed, the earlier it is done the better chance it has to grow into something substantial.
All that is well and good. Paying taxes throughout your life, you know the in’s and out’s of the tax system and the importance of financial planning. Which leads us to the question of the day: What happens to the pension fund now that you live and work in Dubai? Do you still have to pay tax on the income you draw working in Dubai? What legislation do you have to follow?
Qualifying Recognised Overseas Pension Scheme or QROPS is a good option to consider for today’s mobile workers. This is a pension plan that enables you to transfer your funds into an offshore account anywhere, given that you report it to the HMRC for the first ten years. Here is what you should know about this pension plan:-
- Investment portfolio – Different pension plans drawn out in various points of your career is quite common. Yet, it is not recommended when figuring out your financial position and retirement plans. QROPS brings all of your pension benefits under its umbrella and helps you map out your goals.
- Lump sums and income – Unlike UK pensions, QROPS is more tax efficient with its no double tax agreement in place with many countries. This means that since you are living and working in Dubai, QROPS allows you to draw tax- free lump sum cash and tax-free pension income.
- Lifetime allowance – Since the scheme is set up in an offshore account, it does not carry a set limit on its lifetime allowance, giving it a free reign to grow.
- Investment choice – QROPS spoils you for investment choices. It gives you the option to invest in shares, funds, endowment policies, bonds, gilts, commercial property etc. internationally.
- Leave more for your beneficiaries – There is no tax drawn upon death offshore and therefore 100% of your funds go directly to your beneficiaries.
What does that mean for you?
At GWM, we understand how confusing retirement planning could be. Every individual has different objectives and priorities, and to align them to and through your retirement plan needs a personal, customized touch. Your future is at stake here and we can help you navigate this maze, like we have for many more before you. Seek out one of our experienced independent financial advisors to get the retirement of your dreams.
For more information visit our website at: www.gwm-intl.com or download your FREE SIPPs vs QROPS: All you need to know guide here:
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