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QNUPS Case Study – Mr Jones

QNUPS Case Study – Mr Jones

QNUPS Case Study – Mr Jones

67-year-old Mr Jones, who resides in Thailand, has offshore savings of £800,000, a SIPP worth £600,000 and has a UK property valued at c£2m. Mr Jones earns £140,000 per annum, a figure he would like to continue to receive after retirement at age 75. Mr Jones asked his Financial Adviser to help him identify the most tax efficient way to fund for this additional pension income.

Mr Jones' Financial Adviser consults The QROPS Bureau, who calculate that the client's SIPP would be worth approximately £886,473 at age 75 with investment growth of 5% per annum. This fund would provide a sustainable income of £51,859 per annum from age 75, after PCLS has been taken, resulting in a shortfall of £88,141 over the desired level of income in retirement.

A QNUPS is considered as a suitable pension vehicle to make up the remaining retirement income, as Mr Jones is outside the UK and therefore not eligible to make UK pension contributions. QNUPS would also be an effective way for a UK resident to fund for supplementary income in retirement.

The QROPS Bureau calculate that if Mr Jones were to immediately contribute £1,020,000 into a QNUPS, then this could potentially be worth £1,507,005 when Mr Jones reaches 75 with investment growth of 5% per annum. This level of pension fund would generate an additional income of c£88,141 at retirement (after PCLS), therefore achieving the client shortfall.

The QROPS Bureau assist Mr Jones' Adviser in the selection of a suitable QNUPS jurisdiction and product via a comprehensive Suitability Report, which takes into account the client's full circumstances and objectives.

The client agrees to contribute the required amount to a QNUPS from his existing assets to achieve the shortfall in income, whilst simultaneously removing the amount from his estate for IHT purposes. All relevant paperwork is provided by The QROPS Bureau who assist with and oversee the setting up of the QNUPS.

Please see the attached PDF for a downloadable version of this document and read in conjunction with our QNUPS summary. 

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