UK Pension Transfers

There are many UK immigrants coming into New Zealand who have pension plans left in the UK. This also applies to returning Kiwis who may have joined schemes whilst working in the UK.

You may be able to transfer your UK pension funds to New Zealand, however there are pros and cons.

At the New Zealand Immigration Concepts Network we believe it is important that you get professional advice based on what is appropriate for your needs.

Richard Harden of Richard Harden Investment Services is an Authorised Financial Adviser (AFA) FSP25365.

He was a UK adviser before immigrating to NZ so he has experience in this field and can assess your position and advise you appropriately.

Early Withdrawals

For many people the sole intention is to get their funds over to NZ and then take the monies out.

Having transferred your UK pension to a NZ QROPS scheme, some schemes may allow access to some monies prior to retirement age.

Richard Harden suggests caution as there are strict rules regarding early access which could give rise to a major tax penalty. He strongly recommends to deal with an adviser who understands these rules.

Richard points out that there is a number of significant advantages in transferring your UK pension to New Zealand:

Significant tax savings can be made, as withdrawals from NZ Superannuation funds are mostly deemed as a return of capital and non taxable. Generally in the UK after any tax free cash has been taken, your pension is taxable income.
You will gain more flexibility with your retirement savings through having access to your capital.

Estate Planning issues. Generally in the UK upon death your pension dies with you unless spouse’s benefits are built in.  Richard Harden advises that in New Zealand upon death any residual monies can be left to your estate.

Liquidity issues. Having reached retirement age in NZ and meeting other requirements, you are able to access all your retirement funds tax free. In certain circumstances you may be able to access a portion of your savings prior to retirement age.

Avoiding UK annuities. For many people purchasing an annuity in the UK may not be the best option. Having transferred funds to a NZ Superannuation scheme at retirement you are not forced into buying one.

Controlling investment decisions. Prior to retirement most NZ schemes offer various investment choices, however at retirement age you have access to your monies and can therefore completely control investment decisions. Rather than having to deal with UK providers it can be far simpler dealing with NZ providers.

There are a number of banks, companies and individuals that can transfer your UK pensions to New Zealand with many offering execution only transfers.

Pension transfers have become big business in NZ and often people are receiving average advice.

To get professional advice based on what is appropriate for your UK pension transfer contact us now:

"We look forward to hearing from you!"

Contact us now for a free assessment and find out how to transfer your UK pension to New Zealand: