Reasons for transferring your UK Pension to NZ
What you need to know
UK Pension Simplification Rules 2006 - how they affect your pension transfer?

It is important to seek good, experienced advice.  With so many types of pension schemes available in the UK, some with extremely valuable guarantees, it is extremely important that you obtain qualified advice on your options.   Should you leave them undisturbed, should you transfer them to a personalised plan in the UK or take the transfer value available and invest in a New Zealand Superannuation scheme?  We have advisers experienced with facilitating the transfer of UK pensions.
In the UK, pension plans are only lightly taxed while saving for retirement, but the income received is assessable for taxation.

In New Zealand (NZ) superannuation funds are taxed along the way and the capital at maturity is tax free.

Some Reasons for transferring your UK Pension to NZ:

• Enables you to keep track of your pension plan and gain more control of your funds without affecting their earning power. You won't need to be concerned whether the fund is merging, closing or going out of existence.
  
  Refer to "UK pension simplification rules 2006"
   

• You may be able to transfer your British pension to New Zealand and access up to 40% of the value immediately.  This will be dependent on the specific requirements of your UK Pension plan. 
   

• You no longer need worry about exchange rate fluctuations affecting your pension payouts.
   

• You will not be paying bank fees for each transfer (may be as a high as £18 per transfer)
   

• You will have good information and control on the companies holding your retirement savings.
   

• Easier to access your money in retirement.
   

• If you die with a UK pension scheme your spouse can get up to 2/3 of the pension you would have received.  If you both die your pension dies with you, however, If you both die leaving qualifying dependent children, your UK pension could continue for as long as you fulfil the schemes eligibility criteria.    With New Zealand superannuation plans all of your remaining investment becomes part of your estate and is passed on to your children, or heirs.

We have experience in handling the transfer of UK pensions to NZ, if it is appropriate, and can communicate directly with your UK pension schemes.  Please note that not all schemes can be transferred.  The transfer will often need to be into an approved superannuation fund with a locked in period in order to comply with the UK Trustees.  If you have started to take a pension it is unlikely we will be able to transfer theses pensions.

Please click here to contact LYFORDS to facilitate the transfer of your UK pensions to NZ.
 

What You Need To Know

• Does my plan contain valuable options?
   

• Does my plan guarantee predictable benefits at retirement, regardless of the future movement of UK interest rates and investment returns?
   

• If I take my benefits as a transfer value now, what rate of return would my Superannuation need to achieve in order to replicate the benefits I have given up?
   

• What percentage of my overall retirement provision is tied up in my UK pensions?
   

• What are the death benefits available from the arrangement, should I die:
     - before normal retirement date?
     - after normal retirement date?
   

• What are the costs associated in making an informed decision?
   

• Where is my pension fund invested in the UK?  If I keep it there does it continue to meet with my attitude to investment risk?
   

• What is the current strength of the insurance company it is invested with?  Do they still exist?
   

• What are the ongoing charges, if any, of my pension arrangement?
   

• How well or badly has my chosen fund(s) performed against its peers?

NOTE: The LYFORDS UK NZ Pension Transfer Service utilises several registered superannuation schemes that are subject to the Superannuation Schemes Act 1989 and Securities Act 1978.

Contact a LYFORDS adviser
 

UK Pension Simplification Rules 2006 - How they affect your Pension Transfer?

From the 6th April 2006 the new “pension simplification” regulations came into effect in the UK.

Under these rules every overseas pension fund that wants to accept transfers from the UK must be approved as a "Qualifying Recognised Overseas Pension Scheme” (or QROPS). All QROPS have to report back to HMRC any payment made to a member in respect of the amount that was transferred from the UK. This includes the date, amount and “nature of the benefit” and the current address of the member.

Note: HMRC will apply a 40% tax on the transfer value if the UK pension is transferred to a non QROPS.

The regulations state that the earliest retirement age is 55 years.  In addition the maximum withdrawal in the first year is limited to 25% of the pension without incurring any tax liability.  Anything above this will incur a tax liability of 40%.  To be a QROP fund reporting of all withdrawals is required to be provided to the UK authorities.  Additional contributions and/or investment growth are not subject to the UK tax penalties.
 

Phone:        Alison Renfrew 0064 4 471 0662          
Toll Free:   NZ   0800 4LYFORDS  (0800 459367)
Fax:            0064 4 471 0615
e-mail:       Please complete the fact finder form or email ukpensions@LYFORDS.co.nz

For further information please refer to:
    - Frequently Asked Questions about transferring UK pensions to NZ
    - Taxation
    - Expats


[ Comparison UK vs NZ pensions- transfer UK pension to NZ ] [ Taxation Issues - UK NZ Pension Transfers ] [ UK NZ Pensions FAQ ] [ Glossary of UK Pension Terms ]

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