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FAQ 20 – What Pension benefits can be taken?

The rules relating to QROPS typically come into two categories which the QROPS provider will adhere to:

  1. An agreement that 70% of funds will be used to provide a lifetime income and benefits are not payable before minimum retirement age. OR
  2. If there is a double taxation agreement in force that contains provisions as to exchange of information and non-discrimination then the QROPS can adopt the rules of that country’s Pension or Superannuation legislation. In many cases affording greater flexibility.

Jurisdictions such as GuernseyGibraltar, Hong Kong etc. have QROPS where 70% of funds are used to provide a lifetime income.

Australia adheres to the second rule which allows the whole pension sum to be paid tax free if Australian resident.

Most QROPS plans are able to facilitate benefits via income drawdown, lump sum payments and annuities.

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