Some reasons for transferring your UK Pension to NZ

We believe that the reasons for transferring your UK pension to New Zealand far out-weigh leaving it with your UK pension's administrator.

• No Tax: When you transfer your UK pension to New Zealand you will be able to take the full benefit of your pension at age 60 tax free. If the funds remain in the UK, any pension income stream will be assessable as income and taxed at the marginal income tax rates.
• Control: Enables you to keep track of your pension plan and gain more control of your funds without affecting their earning power. You won't need to be concerned whether the fund is merging, closing or going out of existence, issues that are not uncommon to UK pension schemes.
• Flexibility: In New Zealand, there is no requirement to purchase a life pension/annuity. You will be able to draw your benefits as a retirement income (allocated pension), as a lump sum or as a combination of both.
• From April 2006 simplification rules came into effect allowing transfer of UK Pensions to HMRC, QROPS approved schemes in New Zealand. At the moment the UK Government is allowing pension transfers, but how long will this continue? The Australian Government does not allow pension transfers out of Australia unless you are on a temporary work permit.
• You may be able to transfer your British pension to New Zealand and access up to 40% of the value immediately. This will be dependent on the specific requirements of your UK Pension plan.
• You no longer need worry about exchange rate fluctuations affecting your pension payouts.
• You will not be paying bank fees for each transfer (may be as a high as £18 per transfer)
• You will have more information and control on the companies holding your retirement savings.
• Easier to access your money in retirement.
• If you die with a UK pension scheme your spouse can get up to 2/3 of the pension you would have received. If you both die your pension dies with you, however, If you both die leaving qualifying dependent children , your UK pension could continue for as long as you fulfill the schemes eligibility criteria. With New Zealand superannuation plans all of your remaining investment becomes part of your estate and is passed on to your children, heirs.

We have experience in handling the transfer of British pensions to New Zealand, if it is appropriate. We liaise directly with your UK pension schemes. Please note that not all schemes can be transferred. The transfer will need to be into an HMRC approved QROPS registered New Zealand superannuation fund.

If the funds are transferred to a non registered fund in New Zealand a UK tax of 55% could be imposed on the funds being transferred.

If you have started to take a pension from your scheme this can not be transferred.

The UK State Pension cannot be transferred.