QROPS pension - moving from UK to HK

[baltan]

Need some advice here...

I am working in the UK currently and will be moving to Hong Kong in August 2014. I have a small DC pension fund (approx. £5000) which my current company contributed into but refuse to continue its maintenance after I quit as I am with them for less than 2 years. The only option for me is to transfer my money to another pensions account.

As I am relocating with no job to go to, I am unsure what pension scheme I can use. Should I transfer to a local UK stakeholder pension fund or should I transfer it to a HK scheme under QROPS? The extra complication is that I cannot foresee whether I will stay in Hong Kong for good or whether I will move back to the UK in a few years.

Anyone has any experience or knowledge they can kindly share?

[Stu79]

To make a QROPS transfer you will pay charges on the transfer and ongoing management fees, plus additional fees if you go back to the UK

Because of this QROPS doesn't really make much sense for a pension of that size, stick it in a UK pension scheme.

[Fleetingly]

As they say above - the "Independant Financial Advisors" would take almost all of your £5K just to transfer it out here. QROPS is basically a huge scam to line their pockets.

[Trebor]

No QROPS provider would accept a pension of that size.

I used to work for one. Well i still work for that Company but we exited the QROPS market some time ago.

Can you stick it in a SIPP?

[baltan]

Thanks for the advice guys - think I will be putting it in the stakeholder pensions. I have gotten a quote from one of the QROPS in Hong Kong, their annual fee is ridiculous for the size of my pensions so guess I can forget about that!

[Trebor]

Thanks for the advice guys - think I will be putting it in the stakeholder pensions. I have gotten a quote from one of the QROPS in Hong Kong, their annual fee is ridiculous for the size of my pensions so guess I can forget about that!

Actually can't you take it out as cash?

I'm fairly sure there is a rule in UK pension legislation that any pension under 10k is eligible for full commutation.

Here

http://www.hmrc.gov.uk/pensionschemes/small-pen.htm

Edit - although reading that again it appears you need to be at least 60 to take advantage of the 'trivialisation' rule.