There are a number of reasons why you might consider an Offshore Pension, some of which we have highlighted here for you.
Expatriate executives, professionals, entertainers and similar types of global workers have a considerable problem with pension provision - do they continue to fund a pension in their home country where there may not be tax advantages or fund an offshore scheme.
An offshore pension investment is the only practicable route for expatriates who require flexibility and portability in the offshore market, even though the income they eventually receive in retirement is going to be taxed, unless they decide to retire to a low or no tax offshore country at a later date.
The treatment of existing tax-privileged pension plans on departure varies very widely between countries and types of investment, but will usually be a material factor in planning future saving patterns. In some cases, a pension fund, which has been built up with tax-free contributions, or the income from it, can be partly or entirely moved into an offshore environment without incurring much or even any taxation.
For UK expatriates, Qualified Recognized Overseas Pensions (QROPS) provide this opportunity, giving anyone with a UK pension scheme who now lives overseas as an expatriate, or is planning to leave the UK the opportunity to transfer their existing pension provisions, giving greater flexibility and investment freedom as well as tax, annuity and lump sum benefits.
Professional advice is an absolute necessity for anyone with a pension fund considering a move offshore. Please contact one of our qualified Holborn Assets advisers who will be happy to help.