Michael Caine, the famous English actor who just recently retired from acting was quoted stating “Save your money, you’re going to need twice as much in your old age as you think.” He wasn’t kidding, if you take into account inflation, geopolitical factors, weather impact, and the fact that the UK’s economy is slowly scraping itself out of a recession, you might need even more. With two-quarters of negative growth at the end of 2023, the UK economy really isn’t the best place to invest your money for retirement. If you’ve lived and worked in the UK and have accumulated a pension there before moving back to India, don’t let your money sit there in an economy that’s growing in the opposite direction, invest in the world’s fastest-growing economy today. In addition to a record 8.4 % growth in GDP this year, the Indian economy has exhibited robustness and resilience with an average of 6-7% growth in GDP for the past 20 years.
A number of factors contribute to the fact that India is being referred to as an economic superpower, one of which is India is ranked 3rd in the world in terms of purchasing power parity. Additionally, according to the World Investment Report 2023, India ranks eighth in the world in terms of Foreign Direct Investment in 2023, ranks 3 for FDI in greenfield projects, and ranks 2 for FDI in international project finance deals. This economic resilience can also be accredited to a number of government initiatives to bolster the economy. These include the National COVID-19 Vaccination Drive which was a boost for the healthcare sector, the Make in India Defence program which boosted India’s aerospace and defense exports, Skill India Mission 2.0 for the education sector, and the Green Freight Movement for logistics. The Make in India campaign was a driving force behind a number of significant changes in the manufacturing sector, all of which have made it one of the most lucrative investments according to Forbes Magazine.
Think about it, if you’re really going to need twice as much money when you retire than you think you do, leaving your pension in a stagnating economy just isn’t going to cut it. Add to that the complexities associated with tax regulations, fluctuating currency rates, and the hassle of navigating your pension fund from across the world, and the decision to invest in India should be a relatively simple one.
I already tried to transfer my pension to India but was rejected?
The problem in India is that while a lot of pension schemes claim to be approved, what’s surprising is that there are only a select few that actually meet the requirements of Her Majesty’s Revenue and Customs (HMRC). This causes a number of applications to be rejected on a regular basis. Please contact us in such a case and we will help rectify the issue.
Is there a penalty for transferring my pension fund to India?
No, not only is the transfer of pension funds to approved pension schemes in India tax-free, but you also nullify any loss that would potentially be incurred due to currency exchange rates and similar complications.
How long does it take?
While most websites and “agencies” claim it can take up to six months to complete the transfer, at QROPS DIRECT we can get the job done in a matter of 30 days.
For further details, get in touch with our team of financial advisors at QROPS DIRECT where we have been helping people transfer their pensions from the UK to India since 2008 and to the tune of over 2.5 billion INR.