Yes. If you decide to transfer your UK pension funds, UK regulations require that they must be transferred to an approved or registered superannuation scheme that is also a QROPS (Qualifying Recognised Overseas Pension Scheme) in New Zealand.
No. Once you have made the transfer to a NZ pension you cannot transfer back to your UK pension plan as a pension. Do not transfer your pension until you are highly confident that you plan to retire in NZ. BUT if you change your mind about living in NZ (it happens) you can transfer your pension funds back to the UK. It is important that you discuss your options with a tax specialist and make sure you are not making an unauthorised withdrawal in the eyes of the HMRC.
All transfers are paid directly by your UK Pension fund into the New Zealand HMRC, QROPS approved superannuation fund. We do not use a trust account, or handle your money so the transfer is secure.
Each pension transfer is different as each individual has different circumstances. The rule of thumb is that a normal transfer will take between 3 to 4 months (the fastest transfer took 6 weeks and the longest 10 months). When there is a delay it is usually due to the time that the UK pension provider takes to arrange transfer papers and confirm transfer values. The transfer values usually involve actuarial calculations and these can take some time to produce. Some pension providers will advise that it will be three months before they provide that value. It is our role to correspond with your pension provider in the UK, request any additional requirements and keep you informed of progress. In addition sometimes it can take up to six months for pension funds to be released by a UK pension provider after all the paper work has been completed.
No, it is a requirement of the UK legislation that the money can only be paid into an approved New Zealand HRMC, QROPS approved superannuation plan.
You may be able to transfer the pension yourself, but the process is complex, and can be very frustrating and confusing. Do you have the necessary understanding of your actions and how they might impact on your future financial security? Our UK Pension Transfer service will save you time, money and stress.
The most difficult part of transferring your pension yourself is that you need to arrange for your funds to be transferred into a QROPS superannuation plan and generally the fund managers require the investor to have received investment advice from an AFA prior to accepting any new funds.
Or, If you did find a superannuation fund manager and could transfer your funds directly you may find that full fees would be charged by the pension provider and you have done all the work alone when a specialist could have done for you at no additional cost. At Lyfords we discount standard entry fees based on the amount of money being transferred. The cost to you to transfer your pension is usually less when you work with Lyfords and receive professional advice than if you transferred your funds independently.
This depends on whether your UK pension provider will allow this. Usually once you are taking a pension you cannot make a withdrawal other than your regular pension.
To be eligible for New Zealand Superannuation you need to be aged 65 or over and a legal resident of New Zealand, having lived here for ten years since age 20. Five of those years have to be since you turned age 50. Contact Work and Income Support on 0800 552 002 or at www.winz.govt.nz. For current rates of New Zealand Superannuation click here.
No, you need to be a permanent resident in New Zealand before your UK pension plan can be transferred. We recommend waiting until you are living and working in New Zealand before you make any sort of decision on this. At present entitlement to New Zealand superannuation is not asset tested. The NZ Government will off-set pension income you are paid by the UK Government against your NZ Government Superannuation entitlement. How much would I get if I qualify for New Zealand superannuation?
Not until you turn 55 and you have been a non UK tax payer for 5 years or more. Your UK pension money was saved for your long term retirement savings so keep to this plan and put it aside for your retirement savings.
With a UK Pension
Your payments from your UK pension funds will be affected by exchange rates and bank transfer charges.
New Zealand Inland Revenue assesses worldwide income as taxable income even if your investments are invested in tax havens. You may receive a tax credit for any income tax already deducted in the UK.
With a NZ Pension
At age 65 you will receive a state pension (New Zealand Superannuation) if you have lived in New Zealand for a total of 10 years since you turned 20 and a total of 5 years since you turned age 50. Any UK state pension will be offset against (deducted from) your New Zealand superannuation entitlement.
Your personal superannuation savings (not the Government funded New Zealand Superannuation) are part of your estate on death.