QROPS Solution for Expats Suffering Pension Crackdown

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Pryce Warner International Group gave over 40 years experience providing expats with retirement planning services and advise that expats concerned about losing their state pension can use a QROPS to secure their retirement income.

The spouses of British expats can no longer claim the married persons allowance

The £3500 per year pension is fairly small and insures that retired British families living abroad are able to maintain a basic standard of living.

Pryce Warner International Group – According to the Telegraph, the spouses of British expats will no longer receive the married persons allowance.

The form of state pension was formerly awarded to the spouses of British expats based on the expat’s national insurance contributions, and the dependent spouse did not need to have lived in the UK to be eligible.

However, the rules have now been changed so that pensions will only be paid based upon the individual’s national insurance contributions and not their spouse's.

David Retikin, Director of Operations at Pryce Warner International Group, commented: “The decision to take away the married persons allowance is clearly a short sighted attempt to boost government coffers, and not based on fairness. The £3500 per year pension is fairly small and ensures that retired British families living abroad are able to maintain a basic standard of living. Fortunately expats can use a QROPS overseas pension to transfer their UK pension rights overseas, which get more favorable tax treatment and higher income rates. At a time when the UK government is determined to minimise any and all state benefits expats need to do what they can to make sure they can maintain a basic standard of living.”

The new ruling is expected to disproportionately affect young women who chose to care for their children rather than work full-time.

Vicky Morris, a stay-at-home mum in Singapore, said: “It's unfair that someone like me who chose to give up their job and raise children will lose out under these reforms. I'm not sure when we are returning to the UK and if I will work there again so there's no guarantee I will qualify for a state pension.”

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Aneil Fatania
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