Lower QROPS cost. 2015 sees the lowest fees ever offered
2015 is the year that may see the polarisation of the QROPS market as some providers see the benefit of volume rather than high fees. So if you are looking to transfer your UK pension 2015 may be the best year.
By: Waterstone Investment Associates
LONDON - Feb. 20, 2015 - PRLog -- QROPS fees started to rise in 2014, some at a rate of 20%. It looked like the market had finally found its level. This looked like the end of low cost QROPS. However there were IFAs and QROPS Trustees that thought that QROPS were still overpriced, and that the market will inevitably polarise, with some providers looking to volume to increase their revenue rather than high fees. Given this 2015 may prove to be ideal year to transfer your UK pension.
Over the last few years, with new players coming into the market, we saw QROPS fees reduce. That was up until mid 2014, when for the first time QROPS providers started to increase their fees.
If we look at the QROPS market compared to the UK SIPP market it seems to be following the same pattern. The late 90s SIPP offerings were very expensive restricting transfers to very large balances, for the transfer to be economical. But over the years as larger companies came into the market prices were forced down. By 2014 the market now offers a variety of plans including very low cost options, allowing very small transfers to take place, as small as a few hundred pounds. In contrast for a QROPS to be economical the figure is £50,000 plus. Even then the fee structure of most QROPS schemes will eat most of the gains away.
The QROPS market has one major problem stopping it following the route SIPPs went down, and that is the size of the market. In comparison to the UK SIPP market, the QROPS market is tiny. For this reason no large company has showed any interest in QROPS.
However there has been an undercurrent, with a few IFAs and QROPS Trusts working together to reduce charges, and offering premium QROPS packages but with a low fee. Waterstone Investment Associates has been one of the IFAs at the forefront. They were the first to offer clients’ QROPS transfers with no adviser charge, and no initial Trustee charge. They also pioneered fixed fee charging rather than percentage based fees, saving clients’ thousands of pounds. Many IFAs are today still charging 3% to 5% as their charge for the advice, plus an ongoing adviser fee of 1%pa, and an initial Trustee charge of up to 1%. In addition to this there is the QROPS Trust annual management charge and a custodian charge. With fee structures like this your QROPS transfer cannot possibly work.
Understanding the importance of low fee structures Waterstone has continued over the years to work with QROPS Trusts to find ways to reduce charges, and is pleased to announce that in 2015 it can offer the lowest fee structures ever, with QROPS Trustee fees starting from just, £475pa. Importantly this is not just for transfer values under £100,000. No matter the size of your transfer, whether £55,000 or £500,000 the cost is £475pa.
Waterstone Investment Associates also guarantee to offer you a lower QROPS (http://www.waterstone-
Waterstone are able to offer a Zero initial charge for all QROPS providers in all jurisdictions.
This means if you have been quoted a fee structure for your QROPS transfer Waterstone will be able to offer you the same package on a lower fee.
Moving your UK pension arrangements to a QROPS if suitable given your own particular circumstances, can only improve your position.
Most importantly, once moved to a QROPS you have control over your money. If left in your UK pension arrangement it is highly likely that additional constraints will be put in place which will adversely affect you.
If you have a UK pension and have left the UK, or are considering a QROPS transfer, contact Waterstone Investment Associates, and transfer your UK pension at the lowest possible cost.
For further details contact: information@
or visit their website: www.waterstone-
Waterstone Investment Associates