Costs Associated with a QROPS Transfer

  1. What are the costs associated with a QROPS?

    • Setup cost – on average these are 1% of the value.
    • Annual management charge – £1000 – £1500 p.a.
    • Underlying Fund Management – these are relatively modest and depend on the specific funds chosen.
  2. What are the costs associated with a pension transfer to a QROPS?

    • If you look at the costs in terms of a percentage of the fund value, then the larger your fund value, the lower the charges.
    • Each specific QROPS scheme has its own charges which depends on various factors.
  3. If the costs are higher than my existing UK pension, why move?

    • The chances are that the long term benefits outweigh these costs.
    • Please discuss with an QROPS advisor.
  4. What is the minimum value I can transfer to a QROPS?

    • Each specific QROPS varies.
    • Different schemes have different charging structures and as a result they are only worthwhile provided that a certain threshold is reached.
    • We have found that the minimum required for a basic QROPS is £25 000. Remember though that you can combine more than one pension to reach this figure.
    • In general, where the amount is below this threshold it is not beneficial to transfer to a QROPS as the benefits no longer outweigh the costs. It is important to note that many schemes allow you to include other investable assets to reach this figure.
    • Thus, whatever the value of your pension, it is worth contacting an authorised advisor, as there is usually a solution to be found.