Oscar Wilde has a famous quote that goes: “When I was young I thought that money was the most important thing in life; now that I am old I know that it is.” Let’s be honest, the only thing worse than growing old is being broke when you get there. While retirement sounds great when you think about fishing by the river or growing vegetables in a garden, expenses tend to pile up when you’re not working and pursuing hobbies. In addition to not having an income, medical expenses, dental expenses, and children’s (or grandchildren’s) expenses can easily put a dent in your savings. That’s probably the reason why most governments of the world try and ensure that people have a pension plan in place for when it’s time to retire. If you’ve lived and worked in the UK and have since moved back to India, now would be the good time to transfer your UK pension fund wisely to Indian qrops.
There’s a recent post on the J.P Morgan Private Bank Website titled “Why now would be a good time to invest in Indian equities.” In this post that highlights a number of reasons why India is the ideal destination for investors, Rashmi Gupta, Managing Director of J.P Morgan Private Bank points out that India’s labor force is expected to grow while almost all others continue to stagnate and shrink. It’s this growing labor force, that is young, well-educated, skilled, and most importantly, relatively inexpensive that is drawing investors from all over the world. Take Apple for example which has not only started manufacturing phones in India but plans to manufacture a quarter of all their phones in India! Similarly, with the government focused on making India a manufacturing hub by providing investors with tax incentives to manufacture in India, manufacturers from all over the world are being drawn to India.
If you’ve lived and worked in the UK and have moved back or are planning to move back to India, you could use your pension fund to invest in Indian equities and watch them grow. In addition to high-risk, high-reward equity schemes, the Indian market also offers schemes with guaranteed interest rates of up to 10.5%. Compare that with the stagnating UK economy, fluctuating currency rates, the hassle of keeping track of taxes and regulations across two different countries, and a 55% death tax in the case of your demise, and you will see that it’s not a very difficult choice to make.
What kind of investment opportunities can I expect when I transfer my pension to Ind
Our team of financial advisors at QROPSDIRECT have been helping people transfer their pensions from the UK to India since 2008, to the tune of over 2.5 billion INR. In addition to fixed-income instruments where interest rates go up to 10.5% and returns are guaranteed, you are also free to invest your pension in equity where returns aren’t guaranteed but there is no cap on the rewards. Investors looking to invest through a QROPS can invest in equity through ULIPS, which are typically in the form of Large Cap funds, Flexi Cap Funds and conservative bond funds.
Does it cost anything to transfer my pension fund from the UK to India?
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.