How to Transfer Your Pension From the UK to New Zealand
Your UK pension can be transferred to NZ smoothly by following these steps:
Please note: We cannot transfer pensions that have transfer values that are less than $20,000 NZD.
We will email you information about transferring your pension, including our discounted fee schedule. The more you transfer, the more we discount our fees.
If you choose Lyfords to facilitate the transfer of your pension, you will have various forms and documents to complete. The UK pension transfer process requires a lot of compliance, but you have come from the UK and will be familiar with this. Compliance procedures are there to protect you.
When we have received your completed documents, we will write to your pension provider and request the transfer value and documents.
The pension transfer process starts here. You will have already signed a contract appointing Lyfords to assist you with transferring your pension funds. With over 20 years’ experience in seamless UK pension transfers we are well-versed in the UK pension legislation and UK pension entitlements. We will assist you to transfer your pension funds and will make appropriate investment recommendations taking into account your investment profile and risk-adjusted returns. These recommendations will depend on the size of your pension funds; the level of investment complexity and investment involvement you want to have; your investor risk profile; and whether you want to have some, or all, of your funds kept in GBP.
At this time, we will send you a link to a psychometric risk profiling questionnaire. There are 25 questions that you can answer online. This risk profiling system won the Best Risk Profiling Solution Award at the 5th Wealth Briefing Swiss Awards 2018.
It takes about 15 minutes to complete the questionnaire. Your answers will enable us to make appropriate investment recommendations based on your risk-return profile.
No answer on risk profile is wrong. Some people want their money to be very safe while others want to invest more aggressively. Correctly assessing your risk profile is an important part of the investment advisory process.
We liaise with the UK providers to follow up on your documents. The response time from the UK can be anywhere from 3 weeks to 3 months, and sometimes even longer.
After we receive information about your pensions from the UK
If, after receiving transfer details from your UK pension provider, Lyfords determines that it is not in your best interests to transfer your pension, we will advise you of this and no fee will be payable to Lyfords.
- Usually, the information from the UK indicates that you will be better off to transfer your pensions. We then complete as much of the transfer documentation that we can on your behalf, indicate where you need to sign, and assist you to complete your Lifetime Allowance Declaration.
- The investment statements and applications will be tailored to your requirements, depending on the amount you are transferring and your investment risk-return profile.
- If you have a pension fund that has a transfer value of 30,000 GBP or more, and pays you a pension when you retire (Defined Benefit scheme), you will need to have a Pension Transfer Value Analysis prepared by a UK adviser. We will provide advice to you about this. We have been able to negotiate discounted fees for these UK advice reports.
Some people want to ‘keep it simple’ and invest in, say, a Balanced managed fund, while others with larger sums to invest want a diversified and personalised investment plan with visible fees, regular reporting, website access and excellent research.
Sign and return the second set of documents we sent to you. We will process them and send them to the NZ QROPS provider, who will authorise and return them to your UK pension provider.
If you elect to invest into a custodial wrap account, we will be writing an investment plan for you while your funds are being transferred to New Zealand. The plan will be based on the size of the funds being transferred, your risk profile, and investment time horizon.
Our recommendations for the most appropriate QROPS (Qualifying Recognised Overseas Pension Scheme) provider for you will depend on the value of the funds you are transferring and your investment risk-return profile.
NOTE: You DO NOT pay additional entry fees or investment plan writing fees in addition to the pension transfer fee (except when you have a defined benefit scheme and a UK adviser report is required).
NOTE: When your money is transferred to New Zealand, it is paid directly into the QROPS that you have chosen. Lyfords does not have access to your money. You have will financial security and peace of mind.
Your money will be directly sent to your new QROPS in New Zealand by your pension provider.
After your pension funds have been transferred, what are your expectations for the future?
We are constantly reviewing and researching investment options to ensure you have an up to date investment plan with excellent fund managers who have long performance histories.
You’ll have access to us when you have a question about your investments. Just send us an email or give us a call, and enjoy peace of mind that comes with knowing that experienced financial advisers are looking after you.
We provide professional QROPS advice to clients across New Zealand.