QROPS in South Africa are some of the most attractive pension schemes especially as it relates to taxes and it is commonly used by British Nationals who have made South Africa their place of residence. Many Bristish expats, the world over use QROPS and so it is not only confined to South Africa but the fact that South Africa and Britain are closely linked means that a significant number of South Africans are taking steps to transfer their pensions from Britain.
Despite the drawbacks caused by the new rules introduced under Britain’s pension freedom legislation in April 2015. QROPS South Africa remains viable and new schemes are opening and British pension holders can also move their pensions to QROPS based in international financial centres.
55+ South Africa QROPS
This was the UK pension transfer scheme that was used to revitalise and reintroduce QROPS to South Africa. This plan stipulates that the age of retirement savers joining the scheme must be 55 years old or over. This way, they avoid the problems of superannuation schemes making hardship or compassionate pension payments to younger savers – the factor that stops them beating the pension age test.Some 55+ QROPS have already joined the HMRC QROPS List, is not approved by the HMRC. However, the fact that the scheme is a QROPS scheme, validates it and certifies that their pension meets QROPS rules.