Bringing a pension over from the UK
#1
Forum Regular
Thread Starter
Joined: Jan 2006
Location: Brisbane
Posts: 195
Bringing a pension over from the UK
Hi, I haven't been on this site for ages but always found it very helpful when we moved here to Brisbane. I am sadly at that age where I am getting letters from my UK occupational pension schemes asking me what I would like to do now that my 57th birthday is approaching . I would appreciate if it anyone could let me know what they did or recommend a good Financial Planner or a QROPS scheme. Thanks, Kathy
#2
BE Enthusiast
Joined: Jun 2012
Location: NSW, Australia
Posts: 450
Re: Bringing a pension over from the UK
Hi. I wouldn't take this as a recommendation as such, but I am using a company called bdh Sterling. They have so far made the whole process pretty painless. There are some pretty large forms to fill out, questionnaires about your attitude to risk/investments, etc. but I have been very happy with their service so far.
Our situations sound a little different though. The Aus gov changed their rules regarding pension transfers last year which complicated things for me a little. So my pension pot is not actually here yet, but still there. Or possibly in Gibraltar. I *think* I can bring my money over here, but am not allowed to access it until I'm at least 55 (I'm 45 - so this snag may not apply to you). I can of course keep paying in, but I'm a full time dad with income of $0 so that's kinda academic...
Brexit also screwed me over. I was looking at transferring when the exchange rate was around £1=£2+, then the rate plummeted so I'm holding fire for now.
One very good thing for me for now is that at least all my separate pots are now in one place, ready to transfer in one go.
Admins: Am I allowed to post their details here?
Our situations sound a little different though. The Aus gov changed their rules regarding pension transfers last year which complicated things for me a little. So my pension pot is not actually here yet, but still there. Or possibly in Gibraltar. I *think* I can bring my money over here, but am not allowed to access it until I'm at least 55 (I'm 45 - so this snag may not apply to you). I can of course keep paying in, but I'm a full time dad with income of $0 so that's kinda academic...
Brexit also screwed me over. I was looking at transferring when the exchange rate was around £1=£2+, then the rate plummeted so I'm holding fire for now.
One very good thing for me for now is that at least all my separate pots are now in one place, ready to transfer in one go.
Admins: Am I allowed to post their details here?
#3
Spud
Joined: Feb 2011
Location: Avoca Beach
Posts: 565
Re: Bringing a pension over from the UK
Beware that the ATO will take their chunk of any funds that you transfer, they tax you on the growth of the fund from the day you arrived in Australia until the day you transfer the balance. If that's a long time and your fund has grown nicely, you will be up for a huge tax bill. We did our QROPS transfer a couple of years ago and paid dearly, but it was better here than there so took it on the chin. We did ours through AMP and they were very helpful and helped with the Tax side of things.
#4
Re: Bringing a pension over from the UK
My previous employer (full time) had me in a 'workplace' pension, recently introduced by the British Government... some incentive wherein the UK Gvm't match my employers contributions.
Does anyone have particular knowledge of moving such a thing? Or does it evermore remain in the UK. Can I tap into it one day, in the dusty future?
Does anyone have particular knowledge of moving such a thing? Or does it evermore remain in the UK. Can I tap into it one day, in the dusty future?
#5
Just Joined
Joined: Aug 2016
Posts: 2
Re: Bringing a pension over from the UK
Hi,
There are not a lot of options before 55 to move the pension to Australia but now you have the option to move into an Australian Super Annuation Scheme or you can leave it in the UK but take advantage of current pension climate in the UK of high transfer valuations and no IHT moving to an International SIPP, which would also allow you to put into Australian dollers (if you wanted to).
<snip>
Thanks,
Tom
There are not a lot of options before 55 to move the pension to Australia but now you have the option to move into an Australian Super Annuation Scheme or you can leave it in the UK but take advantage of current pension climate in the UK of high transfer valuations and no IHT moving to an International SIPP, which would also allow you to put into Australian dollers (if you wanted to).
<snip>
Thanks,
Tom
Last edited by christmasoompa; Jul 14th 2017 at 12:12 pm. Reason: Please don't ask forum members to contact you, thx.
#6
Forum Regular
Joined: Dec 2011
Posts: 193
Re: Bringing a pension over from the UK
Leave it in the UK and move it to an International SIPP? A SIPP is a SIPP- they are all UK registered pensions. What has "International" got to do with anything?What has IHT got to do with pensions?
Since the original poster is 57, then a straight move to a Superannuation may be the best solution. Though, if final salary, only if the advice stacks up and beware of the non-concessionary limits.
Since the original poster is 57, then a straight move to a Superannuation may be the best solution. Though, if final salary, only if the advice stacks up and beware of the non-concessionary limits.
#7
Just Joined
Joined: Aug 2016
Posts: 2
Re: Bringing a pension over from the UK
Correct Otto; an International SIPP is the same as a UK SIPP. It is just branded "International" for clients to understand easier.
Regarding IHT or beneficiaries being taxed; A final Salary scheme in the UK won't allow you to name children as beneficiaries so in the event of death nothing would go to their children and their partner would only have 50% of the worth of the pension - a SIPP would allow 100% to go onto beneficiaries.
The Supperannuation may be the best option it would depend on a number of different things.
Regarding IHT or beneficiaries being taxed; A final Salary scheme in the UK won't allow you to name children as beneficiaries so in the event of death nothing would go to their children and their partner would only have 50% of the worth of the pension - a SIPP would allow 100% to go onto beneficiaries.
The Supperannuation may be the best option it would depend on a number of different things.
#8
Forum Regular
Joined: Dec 2011
Posts: 193
Re: Bringing a pension over from the UK
Correct Otto; an International SIPP is the same as a UK SIPP. It is just branded "International" for clients to understand easier.
Regarding IHT or beneficiaries being taxed; A final Salary scheme in the UK won't allow you to name children as beneficiaries so in the event of death nothing would go to their children and their partner would only have 50% of the worth of the pension - a SIPP would allow 100% to go onto beneficiaries.
The Supperannuation may be the best option it would depend on a number of different things.
Regarding IHT or beneficiaries being taxed; A final Salary scheme in the UK won't allow you to name children as beneficiaries so in the event of death nothing would go to their children and their partner would only have 50% of the worth of the pension - a SIPP would allow 100% to go onto beneficiaries.
The Supperannuation may be the best option it would depend on a number of different things.
Final salary pensions pay dependents' pension and they can be named on an "Expression of Wish" form held by the scheme trustees. The spouse's benefit is based on a percentage of the income (worth?) on death. There is typically a 5 year guarantee when the retiree first takes the pension(so death within 5 years ensures the balance is payable). Typically between 50% to 66% of the pension on death is payable the spouse thereafter and then, if still dependent, a reduced pension to the children.
I am not sure what IHT has to do with anything, unless someone decides to make a binding death benefit nomination on the trustees(SIPPS incl) as that will invalidate the IHT exemption.