Income and Investment Options for QROPS Members

There are a variety of Benefit and Investment options and actions open to the QROPS Member:

Drawing Benefits

Pension Commencement Lump Sum (PCLS). If the QROPS Member has not already drawn PCLS, (formerly known as Tax Free Cash), they are eligible to do so (up to 30% of Fund value).

Income stream. The Member may wish to draw an income stream from their QROPS. QROPS allows for an income stream to be paid from the Member's fund, up to the maximum permitted under the rules of the relevant regulatory authorities.

Normal Retirement Age is 65 and Early Retirement Age is 55. See also Technical Information for QROPS pages.

Investing

The Member can appoint an investment manager (subject to the Trustees’ due diligence and approval by the relevant regulatory authorities) to take safe custody of the Member’s assets and to act on the investment instructions of the Member and/or Adviser. This will allow investments to be managed on a discretionary or advisory basis within the following categories:

  • Stocks
  • Bonds
  • Alternative investments
  • Hedge funds
  • Structured products & deposits

Additionally QROPS Members are also permitted to invest in the following asset classes:

  • Private equity - held indirectly through a separate wholly owned offshore company.
  • Real Estate (Commercial) - held indirectly through a separate wholly owned offshore company [Finance Act 2006 (Sch 21, Para 14(3) and and subsequent regulations - The Pensions Schemes (Application of UK Provisions to Relevant Non-UK Schemes)(Amendment) Regulations]

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