I am looking at the possibility of transferring my teachers pension out of the UK using the QROPS scheme. I'm 52 and have around 18 yrs service in my pension scheme. I'm frightened to death that I make a wrong decision here and just wondered if there is anyone out there with any experience of looking at the QROPS system and what pitfalls to look out for.
I'm sure you've consulted the Teacher's Pension site but if not above is a link. Useful pension calculator included.
Hi Julie, OK, just one more thing you should look out for. Grouping small pensions and AVs together is fine(although you can't mix your husband's funds with your AVs) as long as it adds up to enough to bear the costs involved. In my view anything that totals under 50k would have to work so hard to cover the QROPS and investment costs that it would whither and leave you one very unhappy pensioner...
Thanks for the advice - I have a company looking into our pension situaton with a meeting next week -hence I've been doing a bit of research and feel I should leave my big pension alone and only look at my husbands small pension and my avc's which aren't really worth the paper they are written on. So from your welcome comments here it looks like I'm on the right track.
Hi Julie, I am a registered and authorised financial adviser in France, and we have handled many QROPS transfers for expats such as yourself. Your Teachers Pension is a final salary pension scheme, and as such is unlikely to be a good candidate for a QROPS, as you would stand to lose too many benefits that are built into your pension. We have advisers all over France, so if you'd like to have me or one of my colleagues look at this for you, we'll be happy to do so.
I'm in agreement with Steve. Both my wife and me have pensions akin to the Teacher scheme and find it hard to think of situations where we would have transferred out.
I have helped over 1500 clients with their QROPS pension transfers and people decide to transfer for a number of reasons.
You should be careful with your pension. It has guaranteed benefits that you will lose if you transfer and there is no option to transfer back in. The benefits at retirement from your current plan are based on your length of service and salary when you left. If you transfer your pension income will depend on a whole load of other factors such as interest rates when you retire and investment performance between now and then.
Don’t transfer without doing a lot of research. I can guide you through your options but if it isn’t right for you, don’t transfer it.