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Why transferring your UK pension to india is the best thing

Tennessee Williams, the famous playwright and screenwriter once said “You can be young without money, but you can’t be old without it.” That’s probably why pension funds were introduced in the first place, to ensure people have money during the period of their lives when they need it the most. If, you’ve lived and worked in the UK, accumulated a pension fund, and have moved back or are planning to move back to India, don’t leave your pension fund behind! The difference between leaving your money in the UK and investing it in India could be the difference between living in an old age home and living on a luxury cruise ship. While the UK economy did register a 0.6% growth during the first quarter of 2024, there’s a long way to go to make up for the 10.4% it shrank during the aftermath of the pandemic. 

The Indian economy, on the other hand, has shown resilience despite economic headwinds, geopolitical tensions, inflation on a global scale, and climate impact, growing by a whopping 8.2% in the financial year ending March ‘24. Additionally, India’s GDP growth rate for the past 20 years has averaged 6-7% annually! With government initiatives like “Make in India” that have bolstered the manufacturing sector, India is now being referred to as an economic superpower of the world. India’s 2024 budget has further underlined the government’s intent to make India a semiconductor and electronics manufacturing hub by allocating 6,903 Crore INR towards the semiconductor and display manufacturing ecosystem, a 360% increase over the previous year. Now imagine the difference that investing in India would make to your retired life, as opposed to leaving your pension in the UK.

If that isn’t enough to make you stop and wonder, here’s another fact, India has been the world’s fastest-growing economy for the last three years and is expected to be the top contributor to GDP growth by 2028.

Are there any limitations associated with investing my pension fund in India?

In terms of investment opportunities, there are two basic categories for QROPS investors in India. The first one is fixed-income instruments where interest rates go up to 10.5% and returns are guaranteed, The other option is investing in equity where returns aren’t guaranteed but the sky is literally the limit. Investors looking to invest through a QROPS can invest in equity through ULIPS, which are large cap funds, flexi cap fund and diversified equity funds.

How do I know if I am eligible to transfer my pension fund to India?

Anyone having contributed to a Registered Pension Scheme in the UK can transfer their pension fund to India through QROPS. This includes Occupational, Final salary, Defined benefit, Defined contribution, Self-invested personal pension, and Small self-administered scheme. 

How much does it cost to transfer my pension from the UK to India?

Not only is the transfer of pension funds to approved pension schemes in India tax-free, but you also nullify any loss that would potentially be incurred due to currency exchange rates and similar complications. 

How long does it take to transfer a UK pension fund to India through an HMRC-compliant scheme?

While a number of websites claim it can take up to 6 months, Mr. J Noble Yuvaraj and his team of financial advisors can get the job done in 30 days!

For further details, contact Mr. J  Noble Yuvaraj and his team of financial advisors at QROPSDIRECT, who have been helping people transfer their pensions from the UK to India since 2008 to the tune of over 2.5 billion INR.

 

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