Most transfers to QROPS do not work

By: PRLog
Research shows that QROPS transfers are being undertaken when the best course of action would be to leave your UK pension where it is.
PRLog - Nov. 25, 2014 - CAMBERLEY, U.K. -- If you take a look at the current QROPS transfer market, you will find that the majority of QROPS transfers are being undertaken on fee structures that cannot possibly work, with investment portfolios that will struggle to come anywhere near the returns that the UK pension was providing.

There is no point transferring your UK pension if it will leave you with far less money in retirement. However, that is exactly what is happening. A QROPS transfer with all the benefits it can provide, has to maintain a fund value the same or higher than that of the UK pension it was transferred from. This is fundamental to the success of your transfer. If your QROPS cannot do this, you will be worse off in retirement.

Cost is undoubtedly the key factor in the success of your transfer. If you transfer your UK pension scheme but it fails to make money, you would have been better off leaving it in the UK. High fees will simply destroy the benefits of a transfer. When taking advice this should be a crucial determining factor. Your adviser should demonstrate the effect of the proposed QROPS fee structure to evaluate whether you should transfer or not.

Unfortunately when you look at what is happening in the market, this is simply not the case. Take note, a great deal of IFAs are recommending transfers on fee structures that cannot possibly equal the investment returns of your UK pension. They rely on enticing clients with promises of high returning investment funds. Some use reports illustrating returns of 12% pa or more, at a time when the FCA rates for illustrations has been reduced to 2%, 5%, and 8%. To realistically reflect potential returns, any illustration you are given should reflect this and not be above 8% pa.

Over the years low cost QROPS Trusts have emerged. However in the main they offer very little investment choice. Offering a small range of in-house funds, inherently containing an additional high fee structure that eats away at your investment returns. So, in reality these low cost structures do not work either.

There is a solution. There are QROPS solutions being offered on highly discounted fee structures. There are companies out there who are able to access these solutions. One such company is Waterstone Investment Associates. The company has been involved in QROPS transfers since day one. During this time it has strived to help push charges down. Given their market share they are able to offer highly discounted fee structures. Waterstone continue to offer the best deal out there. With no initial fees to pay, and with an annual management charge at half that of the published rates, they continue to offer the lowest costing solutions out there.

Waterstone Investment Associates are not offering inferior unknown QROPS Trusts. They recommend only main stream highly efficient market leaders using fully transparent open architecture QROPS solutions. This allow you to hold any investment you wish. This coupled with a low fee structure, gives you a QROPS solution that makes money for you not just for the QROPS provider.

Waterstone Investment Associates are the fastest growing provider of advice to UK pension holders looking to transfer to a QROPS, with their largest markets in the USA and Spain, but advising clients anywhere in the world.

If you have a UK pension and have left the UK, or are considering a QROPS transfer, I suggest you contact Waterstone Investment Associates.

For further details, contact: information@qropsusa.net

or visit their website:   www.waterstone-investment-associates.com.

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