The abbreviation QROPS is one that can fill some people with confusion.
It stands for Qualified Recognised Overseas Pension Scheme and for those considering the prospect of living abroad for their final years, it is an important one to get to grips with.
The term relates to the decision by the UK government to allow those who hold British pension rights (who are ordinarily resident in the UK for tax purposes) to move those benefits to locations out with the British Isles.
In April of 2006 the government introduced QROPS; the setup allows the movement of these benefits with the Her Majesty's Inland Revenue's approval.
In basic terms, QROPS might be thought of as an offshore pension or perhaps an international pension.
There can be substantial taxation and investment advantages to those with British based pension rights who have already become, or plan to become resident outside the UK in the future for tax purposes.
In general terms any scheme with the QROPS name should fit in with the existing rules that govern a standard authorized pension scheme.
The QROPS trustees must report to HMRC (Her Majesty's Customs and Revenue) information concerning particular events if that person has been resident somewhere in the UK for purposes of taxation for the preceding five years.
The events that might be included in this list could be a record of any payment of benefits focusing on lump sums, income and death benefits.
Any onward transfer of the QROPS would also be noted.
It should be noted that if the person in question has been resident out with the UK for 5 complete tax years or more, then Her Majesty's Revenue and Customs do not need any information to be reported to them.
Some nations might be more favourable to those thinking of living abroad than others, due to the rules and regulations surrounding their QROPS.
The selection of certain jurisdictions over others can make it possible to gain substantial taxation and investment advantages if compared to the rules and regulations related to United Kingdom pensions.
If you want to know more information regarding QROPS, you can obtain a list that is published by HMRC of QROPs schemes.
It should be noted that not every scheme chooses to be on that list.
Retirement should be a very enjoyable affair, and having a good income can make the difference between enjoying it to the fullest - and not.
By taking the time to find out about the right pension for you, you'll be able to make an informed decision about your future.