The boss of deVere, a global advice firm, says its advisers have experienced a “considerable hike in QROPS enquiries worldwide” since June 2016.
And Nigel Green, deVere’s founder, said he foresees this trend to continue.
He told FP Today: “We’ve seen a significant surge in people seeking advice on transferring their British pensions out of the UK in the months following the Brexit referendum.
“Advisers are reporting that people with a British pension have been looking into their options on ways to ‘Brexit-proof’ their retirement funds, which has led to a considerable hike in QROPS enquiries worldwide since June 2016.
“With the ongoing and mounting Brexit fallout, we expect enquiries into overseas pension transfers to continue gaining momentum, throughout 2017 and beyond.”
DeVere reported a 21 per cent increase in enquiries on overseas pensions, worldwide, since June.
Mr Green said: “This substantial increase, in effect, represents hundreds of millions of pounds in retirement funds potentially leaving the UK, as people take action to safeguard their pensions by transferring them into a secure, regulated, English-speaking jurisdictions outside Britain, such as Malta and Gibraltar.”
He said: “Following the vote, gilt yields have fallen considerably, which has driven up transfer values to record highs. It is improbable that the transfer values will stay at this same high level post-Brexit, so more and more people wish to make the most of what could possibly be once-in-a-lifetime values.”
The increase in QROPS enquiries has been reported by deVere offices globally, rather than in particular regions or countries, he said. They have been predominantly from those already living outside the UK, and people currently in the UK planning to retire overseas.
Mr Green said: “Wherever our clients reside, whether it be the U.S., Australia, Spain or Germany, if they hold a British pension, they will likely be affected by the Brexit-battered pound.”
The government has discussed plans to allow QROPS to operate the same pension freedoms as UK-registered schemes.
Mr Green said: “As it stands, QROPS can be, to some extent, limited in the benefits they provide, with at least 70 per cent of the pension fund needed to provide a retirement income. However, under the latest proposal by the government, the 70 per cent would no longer apply, but they would still be allowed to qualify as a QROPS.
“Therefore, should this proposal be implemented, I would embrace this change, as it highlights the fact that QROPS will maintain the same or equivalent standards as UK pensions and they are fully immersed in the retirement planning ‘Establishment’.”
DeVere Group was established back in 2002 and now has more than 72 offices around the world including in Dubai, New York, Geneva, Moscow, Sydney, Abu Dhabi, Cape Town, Hong Kong, London, Miami, Tokyo, Johannesburg, Zurich, Paris, The Bahamas, Barcelona and Shanghai.