Insight Discovery’s Survey of South African Financial Advisers Reveals QPROPS Optimism
According to a recent survey from Insight Discovery, a strategic intelligence company, the feeling among South African financial advisers is that interest in QPROPS will increase significantly. This is largely driven by the benefits QPROPS bring to an expat pension, and the new pension regulations that allow for unfettered access to your pension pot.
If you’re an expatriate, the results indicate now is a good time to move your pension to a QPROPS scheme.
Nigel Sillitoe Insight Discovery’s chief executive said: “A degree of caution has to be used with this small sample but, in my view, it is representative as there are fewer than 10 firms in South Africa that focus solely on expats.”
Although roughly half believed it was too early to tell what the impact of the pension changes would have, half of the survey’s 45 respondents believed the new pension regulations which apply to the over 55s, would be make QPROPS more appealing. It also revealed that only 14% of IFA’s advise their clients on the benefits of using QPROPS for a better return on their pension.
The survey also revealed that IFA’s that worked with QPROPS used a wide range of trusts and international life companies. They went on to say that life insurers were selected on accessibility, fund range, flexibility, and fees.
Most South African IFA’s believe that regulatory change is the main challenge for the investor and the financial industry itself.
What are the Pension Reforms?
The pension reforms the survey relates to are more commonly known as Pension Freedom. The main change is that whereas before you had to buy an annuity which provided a fixed monthly income. Now, you can withdraw your pension fund as you want to. In essence you have more control over your pension fund.
What Does this Mean for Me?
If you are an expatriate then you should consider moving your pension to a QPROPS scheme. The benefits are considerable and when handled by a good financial planner you can avoid tax liabilities and take advantage of the pension reforms which give you more control over your pension pot.
There are a number of factors to consider however, when moving to a QPROPS pension. Consider:
- Has your pension provider implemented Pension Freedom? – Not many have
- Tax – The ‘T’ word always raises its ugly head and is a factor in all of your wealth management decisions
- Has your pension provider implement the new Pension Freedom ‘death tax’?
Award Winning Financial Planning
As an award winning financial planner I can help you make your money go further by ensuring your QPROPS transfer not only happens without a hitch, but makes your money work for you. The return on investment is everything, and I can help you to secure a better retirement.
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Source: International Adviser
For more information, please contact Michele Carby at Holborn Asset Management on +971 50 618 6463 and on e-mail at [email protected]
