Sunday, November 27, 2011

Millions can't afford to step down until they reach their 70s

By Craig Wilson

Pensions are in such a mess in Britain that virtually a 3rd of workers will not have enough money saved to pay for retirement till they are in their 70s.

Millions are planning to work on for at least 10 years after retirement age - some till they're 75 years old or even more.

The dread driving retirement savers is they'll outlive their cash and end up spending their later years in poverty.

One of the Problems faced by ex pat OAPs is whether to leave allowance funds back in The United Kingdom when they depart - or whether to shift their retirement savings offshore.

The most highly recommended offshore annuity is a QROPS.

The attractions of a QROPS are a lot of for ex pats - allowances paid gross, larger tax-free pile sums and more flexible investment options to cite a couple - but are they productive for everyone?

Assuredly, QROPS aren't a universal retirement solution.

The key test is looking at current allowance arrangements and how they are performing and then comparing these with an offshore alternative.

The difficulty is a QROPS isn't a pension plan in the sense of setting up a retirement plan or SiPP in England.

A QROPS is more like a trust with investment options, line offshore bonds, built in.

Investing in a QROPS is just as risky as staking money anywhere else - QROPS values rise and fall with the market like other investments.

The massive difference is choice and control. A QROPS offers a good range of commodities, stocks, currencies and markets and options to take full or part control of investments. Infact, what can be held inside a QROPS is probably limitless

Lots of the millions delaying retirement are doing so to defer annuities in an attempt to increase the value of their funds, asserts UK annuity firm LV=, which conducted the survey.

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