QROPS in France | Expat Pension Advice
Are you a resident in France? Do you have a QROPS, or are you considering a QROPS? Our award-winning advisers tell the story of a QROPS loser in France, and explain why a QROPS is not always the answer…
5 key questions you need to ask yourself:
Did you receive free advice to transfer? (The Provider paid your fee)
Is your QROPS in Guernsey, Malta or Gibraltar? (No QROPS recognised in France)
Was your original adviser not the same person who authorised and signed off the pension transfer?
Are your pension assets held within companies such as RL360, OMI, Friends Provident International, Zurich, SEB, Generali, Hansard, Investors Trust?
Are some or all of your investments in non-regulated funds, or locked away for a minimum time period?
If you answered ‘Yes’ to at least 3 of these, you should take action, or you will lose out in your future retirement.
If you answered ‘Yes’ to all 5 then the chances are you have already lost part of your retirement fund, and compromised your future retirement plans. You need take action immediately.
If you do not understand the significance of these questions you need advice now! We offer a QROPS review for French expatriates.
You have likely been told that it was beneficial for you to transfer to a QROPS.
Are you one of the 73% who have been lied to, and are about to lose pension funds needed in your retirement?
Our case studybelow shows what can happen!
What you are not told is that a lot of the benefits that are promised with a QROPS can be found with a SIPP or International SIPP!
Nigel (not his real name) was sold a QROPS on the basis that it would:
– be better for tax
– have better flexibility of access
– be highly protected
– remove it “from the clutches of the Treasury” in the UK.
What was Nigel told?
He was told it had a 1% annual charge plus trustee fees of €500 per annum. He was promised double digit returns if he locked part of his money up for 6 years.
What happened next?
Nigel lost his pension and his retirement was destroyed. If Nigel’s story is your story, then this could be your outcome.
What should you check now to avoid this?
Nigel did not know what an insurance bond wrapper was. Why would he and why would you? However, it is critical.
You may have been told an insurance bond wrapper is:
– an investment bond
– a fund platform
– an investment manager
– a tax-efficient vehicle
There are many ways to describe it; it can be a force for good or one of the most damaging products you can own. It’s also completely unnecessary in a QROPS or a SIPP!
How bad is your problem?
If an insurance bond is unnecessary, why would it be sold to you inside a QROPS or SIPP? Remember Question 1 above – “Did you receive free advice to transfer?” Whilst it may appear as though you did not have to pay for advice, the insurance bond wrapper can pay a large commission to unscrupulous salespeople. Along with other commission products, it can equal up to 13% of your fund!
Nigel had no reason to think that he had any problems until the salesperson disappeared. He had been lied to by his adviser and he lost most of the money in his QROPS. If Nigel’s story sounds familiar, and your salesperson is telling you that the charges are only 1% per annum, then the chances are that you are being lied to as well.
What is the solution?
If you are concerned about your QROPS and the person who sold it to you has disappeared, or you are only contacted to “switch” your investments around (generating more commission) then:
You should stop switching funds immediately.
Avoid locking your funds into further 5 or 6 year term investments.
You should contact your trustees to find out your insurance bond surrender penalty.
You should ask your trustees why they permitted your pension to be invested in an insurance bond, and also what due diligence they did on the adviser who gave the advice they followed.
Ask for a professional to assess your risk and target for retirement. It could be a good idea to pay for a report.
Ensure your professional is registered with the regulator in your country (ORIAS and AMF in France) AND openly declares third party connections in other regulated territories AND allows you to vet them.
Avoid further loss of your future retirement income by taking action now.
Watch our video
For Bond information CLICK HERE ›
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