Defined Benefit Pension to India: What You Must Consider Before a QROPS Transfer
A defined benefit pension may offer a cash-equivalent transfer value, but transferring gives up guaranteed benefits. The FCA and The Pensions Regulator consider that keeping a DB pension is in most people’s best interests. For most transfers of safeguarded benefits worth more than £30,000, advice from an appropriately authorised UK adviser is mandatory.
What you give up
A DB pension commonly provides a promised income for life, often with inflation increases and benefits for a spouse or dependant. A transfer converts those promises into a capital value whose future outcome depends on investment performance, withdrawals, costs and longevity.
The FCA specifically warns that a transferred pot can fall in value and can run out. A high transfer value is therefore not, by itself, evidence that a transfer is suitable.
Where QROPS fits
Only after the transfer-out decision has been properly assessed should the receiving structure be considered. QROPS Direct can coordinate India-side and administrative steps, but any UK-regulated DB transfer advice that is legally required must come from a firm with the appropriate FCA permission.
Frequently asked questions
Can a final salary pension be transferred to India?
Some DB schemes can offer a transfer value, but the legal/advice requirements and suitability must be assessed before any overseas receiving arrangement is chosen.
Why is £30,000 important?
UK rules generally require regulated advice before transferring safeguarded benefits worth more than £30,000.
Does a large CETV mean I should transfer?
No. The value of the guarantees being surrendered must be assessed against the member’s objectives and alternatives.
Speak to QROPS Direct
If you are considering transferring your UK pension to India, speak to QROPS Direct before taking any action. We can review your pension arrangements, transfer eligibility and the key considerations relevant to your individual circumstances.
