Investors who had transferred their UK Pensions into the Kiwi Wealth Super Scheme have been advised this week that the scheme is closed to new members from 4 October and will wind-up effective 31 December 2023. Fisher Funds which now owns the Kiwi Wealth funds stated that they are closing the fund due to low demand for this type of investment. One of the requirements to be a QROPS is being open to members in the country the scheme is established in. By closing the fund the scheme loses its QROPS status.
Investors we have talked with have been shocked at the short notice. Investors do have until 30 November to transfer or withdraw from the scheme.
What are investors options?
- To avoid any HMRC penalties if you are under the age of 55 we recommend transferring into another HMRC, QROPS approved superannuation scheme – contact us and we can guide you through the process and recommend another QROPS fund.
- If you are over the age of 55 and a New Zealand resident you can elect to withdraw your funds without incurring any penalty taxes from early withdrawal from a QROPS scheme.
- If you do nothing by 30 November you will not be able to withdraw or transfer your savings until the wind-up process has completed. This could take up to three months. Your risk is that you could face large penalty tax by the HMRC for early withdrawal. You should contact us early. The transfer could take 2-3 weeks to complete so take action now.
Contact a Lyfords Financial Adviser today.