Although QROPS offer multiple benefits over their UK pension equivalent they do have drawbacks as well. Following the latest pension amendments these disadvantages are as follows;

As the name (Qualifying Recognised Overseas Pension Scheme) implies these are pensions designed for the overseas market. They should not be used by UK residents who have no intention of residing abroad in the future except in possibly extremely rare circumstances.
 
If you reside abroad for a period of time and then return to the UK you will benefit from only being taxed on only 90% of any income withdrawal
One of the conditions imposed by HMRC on QROPS is that the majority of benefits paid out must be taxable. This is only fair since any UK pensions transferred in have already benefited from tax relief. However, this rule makes any further contribution less tax efficient unless relief is received from the jurisdiction where your pension is based. In reality there are much better ways of accumulating further pension benefits. For example, a person residing in Switzerland could invest via a third pillar pension (private pension) which gives tax relief. Should they then leave they can withdraw the money and usually pay tax at a lower rate

 
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QROPS drawbacks

Any pension that is moved into a QROPS will lose all pension rights afforded to it by the UK scheme. For example, a final salary scheme would no longer provide a guaranteed level of income in retirement. In such circumstances it is important to weigh up the pros against the cons along with the transfer value to ensure that you are making the right decision. You may wish to seek professional advice on the matter
Costs can make smaller pension transfers economically unviable due to the often fixed price and/or tiered charges. Therefore, the larger your pension pot the less you pay in percentage terms. Also, although QROPS costs are coming down it may be possible to source cheaper alternatives. The advantages provided, however, can make this a cost worth paying
A QROPS is required to notify HMRC if it no longer meets HMRC’s regulations. If this occurs you either have to move your pension to another qualifying scheme or lose all advantages afforded to QROPS. This could result in additional costs for setting up a new plan
The UK currently regulates pensions via the Financial Conduct Authority (FCA) & The Pension Regulator dependent on the type of scheme. They are protected by the Financial Services Compensation Scheme (FSCS) and the Pension Protection Fund (PPF). You may be aware of these companies and the work they do but even if you aren’t you will probably have a fair understanding of the general UK regulatory environment and how it works.
 
In comparison, it may very well be likely that you are completely unfamiliar with each QROPS jurisdictions’ regulatory body and compensation scheme
Certain unscrupulous providers can give you access to your pension early. Although it may be technically possible the UK’s stance on pension busting is that it is against the spirit of the rules and if found guilty you are liable to unauthorised payment charges. We advise against accessing your pension earlier than allowed
Some may see this a positive though with in excess of 3,700 different registered schemes over 45 jurisdictions appearing on HMRC’s ROPS list (previously QROPS list) trying to establish the best QROPS provider for you could become extremely time consuming. You will also have to factor in the fact that not all listed schemes may be qualified
Most people are comfortable sticking with what they know. As such, it is only natural that you may wish to continue using your existing financial advisor. However, having moved abroad, either they may not be able to help you or the advice you now require may be better provided by a specialist in the field

QROPS drawbacks

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QROPS drawbacks – The downsides of transferring a UK pension abroad written by Liberty Wealth average rating 4.3/5 - 24 user ratings