Change your UK Pounds to NZ Dollars when the exchange rate is in your favour!
Get a FREE assessment to find out what your UK Pension is worth!
Improve returns and save thousands on transfer and management fees!
We can answer your questions more fully when you contact us, however we have listed below the answers to some of the questions that we are most frequently asked.
Should I transfer my pension from the UK?
This is a very uniquely personal question and will depend upon many factors, including your commitment to your new life in New Zealand and whether it is actually financially advantageous for you to transfer your pension. We recommend you take the time to obtain relevant financial and taxation advice, as once we have completed your transfer you have given up all rights to your UK pension. If you have any thoughts of returning to live permanently in the UK then don’t transfer your pension!
Will I be able to transfer my UK Pension funds?
Normally yes, if you are not already drawing your pension, and usually the UK scheme only allows this if you have emigrated from the UK permanently. Some UK schemes will require proof of emigration such as a letter from a New Zealand employer – this usually applies to occupational schemes (UK workplace pension scheme). There are also other rules imposed by HMRC in the UK which are outlined below.
How do I go about transferring my pension?
We will manage the entire pension transfer process for you – this involves obtaining the required documentation from your UK Pension provider, organising a suitable (QROPS) superannuation scheme in New Zealand to receive your transfer, and keeping you informed as to the status of your transfer application. We act with your authority and on your behalf, however at all times your funds remain in your ownership and control.
What are the rules surrounding pension transfers from the UK?
New pension transfer laws were introduced in the UK on 6 April 2006. Non-UK pension providers must be a QROPS scheme recognised by HM Revenue & Customs (HMRC), otherwise the transfer is deemed an unauthorised payment and will incur a penalty/tax charge. (40% unauthorised payments charge and, possibly, up to a 15% unauthorised payments surcharge).
What is a QROPS (qualifying recognised overseas pension scheme)?
This is a scheme that meets certain criteria set by Her Majesty’s Revenue and Customs (HMRC) to receive pension transfers without penalty tax. You can transfer to a scheme that is not registered as a QROP but you will incur the UK penalty tax regime.
What are the obligations of a QROPS scheme?
In order to gain QROP status, a Scheme Provider must give HMRC an undertaking that they will provide HMRC with any information they request regarding a transferred member and their accounts when they make a payment to a member. Currently they have to provide the name and address of the member and the date, amount and nature of the payment. This could change to include other information in the future.
Does it matter if I haven’t already got a NZ Superannuation Scheme?
No, we will arrange a qualifying recognized overseas pension scheme (QROPS) for you. In order to complete the transfer it is a requirement that you are a member of an approved scheme in New Zealand and that your UK funds are paid directly into your New Zealand scheme.
Do I have to make additional contributions to the transferred amount?
No, we can set up a ‘lump sum only’ Superannuation plan for you, or you can make regular ongoing contributions to your new scheme in New Zealand if you wish.
Do I get to choose how my funds are invested?
Yes. Within the QROPS Superannuation fund we set up for you there are many options that range from Cash and Conservative Portfolios, to Balanced and Growth Portfolios. You decide how your pension transfer is invested, and we can switch funds between portfolios as often as you like.
Can I withdraw cash from my pension fund once the transfer is complete?
Yes. This is dependent on restrictions imposed by your UK scheme and the rules of your New Zealand QROPS Scheme. It may be possible to take up to 40% in cash without incurring the UK HMRC tax penalties if you can show that you have been a UK non resident for tax purposes for at least five full consecutive UK tax years. If you can’t show this then you could still withdraw funds, however you may be liable for the UK HMRC tax penalty of up to 55%.
What are the rules around withdrawals?
As outlined above, withdrawals from the UK pension scheme will be subject to rules from both your new QROPS Scheme in New Zealand and your existing UK scheme, plus tax impacts under UK legislation. Sometimes the transferring scheme can insist that the whole amount is 'locked in'.
For UK tax purposes, your New Zealand QROPS Scheme is required to report all withdrawals from UK pension transferred funds, unless you can show that you have been UK non resident for tax purposes for at least five full consecutive UK tax years up to the time the withdrawal is requested.
If I have already started to draw income from my UK Pension, can I still transfer the lump sum?
No, once your pension is being paid out as regular income you can no longer transfer the lump sum.
Can I leave my pension in the UK for a while before transferring it to New Zealand?
Yes you can. There is no legal requirement to transfer your pension to New Zealand, however leaving your pension in the UK could create a tax liability for you depending on your individual circumstances.
Foreign investment fund rules (which pensions sometimes fall under) may mean that you end up having to pay tax on the growth in your UK pension fund, even though you are not in the UK.
This is a complex area and we suggest that you seek specialist tax advice as to your individual circumstances.
Who controls my pension during the transfer process?
At all times your funds are kept in your name either directly by the superannuation fund provider in New Zealand, the pension provider in the United Kingdom, or by the Trustees of each of these respectively. At no time are the funds not in your name.
How long does the transfer process take?
UK Pension providers vary widely in the speed of their response to transfer enquiries, but normally transfers take between 3 to 6 months.
Should I transfer my UK Pension to a KiwiSaver scheme?
Some KiwiSaver schemes have QROPS approved status and can accept pension transfers from UK pension providers, however KiwiSaver schemes are far more restrictive than other NZ Superannuation schemes. We would not normally recommend that you lock your transferred pension funds into a KiwiSaver scheme.
I have already transferred my UK Pension to a NZ QROP Scheme. Can I now transfer to your scheme?
Yes, if the Trustees of your existing scheme approve the transfer. Normally this is allowed, provided the new scheme we set up for you is also a QROP scheme and has similar rules.
What about other NZ Superannuation Schemes – can I transfer them to my new Scheme also?
Yes, as above, if the rules are similar and your existing scheme Trustees approve, then you can transfer your Pension or Superannuation to a new Scheme with us to save on fees and join our FeeCap program.
Start your transfer now! It's easy and costs nothing to find out what your UK Pension is worth! Get started now
I can honestly say I found the whole experience very quick, simple and easy from start to finish. Norm did it all for me, and he is also a nice guy to deal with - I'm happy to recommend his services to anyone looking to transfer...