Finance experts have predicted that the newly announced pension restrictions, dubbed ‘Granny Tax’ will push more Brit retirees into seeking a new life abroad.
Last week, as part of his 2012 Budget, Chancellor George Osborne announced that the age-related allowance for people turning 65 will be stopped come April 2013, giving retiring Brits yet another reason to abandon the thought of having a pension life in the UK.
As such it is only natural that more people will investigate the prospect of transferring into a QROPS, the popular expatriate pension transfer that has recently been dominating the financial newssheets. As HMRC seek to create better regulations for QROPS, many are taking this as an indication that the QROPS is becoming an increasingly ‘mainstream’ financial product.
A number of destinations are highly tempting for older savers, including Guernsey, Malta and Cyprus, as they offer a secure landscape with favourable tax regimes for expatriates.
If you are a UK citizen who is dismayed by the new ‘Granny Tax’ and wishes to find out more about alternative options, then please refer to our Pensions and Retirement Planning section, or speak to a recommended financial adviser.