UK Pension Transfers

Step 1. Contact Advice Financial's head office staff to arrange a meeting with one of our local advisers.

You can telephone us on Freephone 0800 10 22 64

or e-mail us at info@advicefinancial.co.nz

There is no cost for this initial meeting during which our adviser will assess your situation and confirm whether you should proceed or not.

Step 2. Complete a Fact Find with your adviser, so the transfer can be incorporated into a comprehensive personal Lifestyle Plan written for you. Complete a Letter of Authority to allow our UK office to obtain full details of your remaining UK pensions.

Your Lifestyle Plan will look at all aspects of your current situation and take into consideration the goals that you want to happen, up to and throughout retirement, to deliver personal recommendations tailored to help you achieve those stated goals.

Step 3. Once your personal Lifestyle Plan is prepared our adviser will assist you to complete the necessary transfer forms, liaise with our office in the UK who will in turn liaise with your UK Pension Provider to facilitate the transfer of your UK pension to a Qualifying Recognised Overseas Pension Scheme (QROPS) in New Zealand that is approved by HM Revenue & Customs (HMRC).

Your adviser will also help you complete your NZ QROPS reinvestment application forms and will recommend suitable funds within that scheme for your personal investment profile, identified as part of your Lifestyle Plan.

As well as a comprehensive Investment Plan, depending on your personal circumstances, your Lifestyle Plan may also include advice regarding Cash Management, Debt Management, Lifestyle Protection Insurances, Estate Planning, Tax Management, Education Funding, Property Investment and Retirement Planning.

Step 4. When your transfer is complete, you will be sent a statement by your nominated New Zealand Superannuation Scheme, detailing the allocation of your money into the individual funds that were identified as most suitable for your personal investment profile.

Depending on your tax status with HMRC and age you may be eligible to withdraw up to 40% of your transferred amount straight away. Your adviser can determine whether you are eligible for an immediate withdrawal and if not, we can confirm when you will be able to access your money.

Background

Emigrating is a significant and potentially life changing decision that needs careful thought and planning. One factor that many people overlook is the opportunity that exists to take your UK pension fund(s) with you when you settle in another country. New Zealand is one of a number of countries where reciprocal arrangements allow for this to take place. However, taking the right advice from experts in this field is essential to your pension transfer process having the totally successful outcome that you desire; The fact that Advice Financial have advisers and staff with experience of living and working in both countries gives us a significant ‘edge’ in giving advice upon this subject.

Why Transfer?

There are significant benefits they could be gained by transferring your UK pension fund to New Zealand;

• You would gain much greater control over how the funds are allocated. You will have little or no input at all into how your UK Pension is invested and the pension funds in the UK are normally invested very conservatively, which may not be suitable for your personal investment profile.
• After transferring, you would be able to switch between investments if you wanted to.
• You may be able to access some or all of the money before age 65, if needed.
• You could receive the money as a lump sum benefit, instead of being compelled to purchase an annuity with the majority of the fund total, as is the case in the UK.
• The value can be factored into your Lifestyle Plan's insurance needs assessment, to reduce the level of covers it is assessed that you need and consequently reduce the premiums you have to pay.
• Interest rates in the UK are significantly lower than the current NZ rates, so you have greater opportunity to get higher returns on your investments here.
• You would remove for good any uncertainty of the fluctuating GBP/NZ$ exchange rate affecting your pension.

This rationale can also apply to some extent to Dutch, Irish and many other European migrants as well. The process from most other European countries is similar to the UK process and you will usually be told what needs to be done and who needs to be informed by your European Pension Provider(s). You would also need to provide your adviser with appropriate written translations of non-English documentation.

UK pensions can be transferred to NZ, only if the funds are invested into a Qualifying Registered Overseas Pension Scheme (QROPS) that has been granted approval by HM Revenue & Customs (HMRC).

Advice Financial is a New Zealand independent financial services company with a nationwide presence. We are a firm of professionals, offering financial advice of the highest professional and ethical standards. Collectively, Advice Financial advisers and staff have over 300 years collective experience in the financial services industry here in New Zealand, Australia, South Africa and the United Kingdom, including investments, banking, mortgages and insurances. No matter where you and your family are located in New Zealand, we at Advice Financial have a professional adviser near you. All investment and risk management advice is based on quality research that exposes all investments to close scrutiny prior to receiving our recommendation.

Your first step

If you are resident in New Zealand and you have left a pension or other investments behind in the UK contact us on info@advicefinancial.co.nz or freephone 0800 10 22 64 and arrange a meeting with one of our local advisers.

If you are resident in the UK, please contact us on the same e-mail address or by phone on 0064 9 915 6464, remembering that we are 11 hours ahead when British Summer Time (BST) is in effect and 13 hours ahead of GMT.