10 Reasons Why Expats Should Look At Thailand QROPS

Thailand Qualifying Recognised Overseas Pension Schemes (QROPS) are an easy way to increase spending power in retirement for expats.

Even with the low cost of living in Bangkok and the rest of Thailand, a QROPS can make a lot of financial sense to British expats who have retired to the beautiful tropical country.

Many expats overlook switching to a QROPS as they are unaware other countries will let them enjoy all the benefits of the offshore pensions wherever they live in the world – even if they are still moving between countries to live or work.

So if you are an expat drawing an onshore British pension in Thailand, here are 10 good reasons how you could benefit from a QROPS pension:

  • Cut out currency exchange rate problems by choosing to have your pension paid in one of many major currency options. British onshore pensions will only pay in Sterling, but QROPS allow US dollars, euros and some local currencies
  • Have your QROPS pension benefits paid without any tax deductions straight into your bank account
  • As you are likely a Thailand resident, any income tax due on pension benefits is paid at local rates
  • QROPS pay a minimum 75% tax-free lump sum. Some pension providers offer up to 30% tax-free lump sum drawdown.
  • Pass on any unspent cash in a pension fund to your family or other loved ones without any UK tax charges – although your beneficiaries may pay some taxes on the income they receive, depending where they live
  • QROPS have a much more flexible investment choice than onshore pensions. Choose from managed, part managed or self-managed pensions that have platform-based fund options similar to a UK self-invested pension plan (SIPP)
  • Even though Thailand has no QROPS provider, expats can sit their QROPS in a reliable European Union financial centre such as Malta. Malta is recognised as a well-regulated and trusted financial centre with all the benefits of EU safeguards for investors.

Malta QROPS providers allow retirement savers to benefit from their products while living off the island.

  • Draw pension benefits from the age of 55 years old
  • The Malta QROPS regulator is the first offshore jurisdiction to offer full flexible access freedoms available to UK pension savers
  • Although money transferred out of a UK pension is tested against the lifetime allowance, one the cash is in a QROPS, no lifetime limits are applied to the value of a fund to restrict growth