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Qualifying Recognised Overseas Pension Schemes are increasingly becoming the

pension planning vehicle of choice for British expats living in France. Wherever your

retirement destination, it is best if you are able to arrange your finances in the most

flexible manner. This means having access to your capital, at a time you want, in the

place you want, and in the currency of your choice.

For retirement planning to be a success for expatriates, it is important to have a clear

understanding of pension legislation in your chosen country of retirement. Thereafter,

it is necessary to select an appropriate product that allows you to benefit from both a

tax and investment perspective. This section looks at the merits of using a QROPS in

. France as both an effective and efficient retirement solution.

1) The cost of living in France compared to the UK

2) Living in France as a reitree: Best places

3) Pension schemes in the UK and France compared

4) QROPS benefits

5) QROPS rules and regulations

6) Who is, and who is not eligible for a QROPS?

There are an estimated 300,000 British expatriates currently residing in France.

Many others make their way to these shores each year. With a similar cost of

living to that of the UK, France beckons to a wide cross-section of expats.

Whether it is the warm climate, the food and wine, or the diverse range of French

cultural activities, retirement in France evidently has its attractions!

France has a similar population size as that of the UK with

approximately 66 million people living there. However, France is over

two times as large as the UK and therein has a greater number and

variety of retirement destinations for expats.

As an expat in France, it is important to compare pension systems there with that of

your home country. British expats in particular need to examine closely the pros and

cons of the two systems before deciding to transfer their pensions from the UK to

France.

These schemes offer a certain degree of flexibility in terms of how and when you can

take benefits. A summary of these benefits include:

You can take up to 30% of your pension fund tax free on retirement. This is higher than the

current UK limit.

A lifetime income can be provided by way of income drawdown, a fixed annuity, or a

combination of both

In most cases you are also able to draw-down a higher annual pension income than you

would if you were to retire in the UK.

It is also important to keep an eye on the legal climate in terms of QROPS

rules and regulations. Changes in legislation can affect the status of your QROPS.

As of June 2013, expats from the UK are required to declare the value of their

pensions, including those assets held in a QROPS to the French fiscal authorities.

This decreases risks and will avoid penalties.

In order to transfer your pension out of the UK, there are a number of rules that

need to be adhered to. In the first instance you must have already left the country

for tax purposes, or be intending to leave in the near future. Once tax resident in

France, you can transfer your pension fund out of the UK into a QROPS in the

same way that you would transfer between pension providers within the UK.

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