knife-edge

Hi, new to this site, and was wondering if anyone could help me to answer a few questions about pensions.

I recently left the UK, and am planning to spend quite some time out in Hong Kong. In essence I have emigrated.

I have a SIPP that I've been paying into in the UK for a few years now, and I am wondering if there is any way of transferring it over to a Hong Kong pension provider? Is this possible? Has anyone done anything similar? I have just started an MPF account in Hong Kong, and I dont like the idea of having small little bits of pension floating around. Can anyone see any obvious benefits or drawbacks to transferring my pension to Hong Kong (if it indeed is even possible).

Thanks in advance,
K-E

ex reg

Can't help with the pension but I would say that if you intend returning to UK if you needed NHS treatment then be very careful what you tell people about emigrating.

Not sure if was on here but recently someone mentioned at a BBQ that they had emigrated. The person they were talking to worked at their local doctors surgery and the next thing that happened was that the guy who had emigrated was 'booted off' the doctors list.

You then have to go through the rigmarole that you do actually still have a residence etc in the UK to get a UK doctor again.

Of course you might be happy with health care overseas.

shelley748

Have sent you a private message

FirstKnight1967

Hi

Just because you moved to Hong Kong or any part of the world, does'nt mean you have to transfer you UK Pension be it a DB or DC Scheme, Stakeholder & or SIPP.
You need to identify & establish, whats in it for you ie how do you Benefit Short or Long Term, ie Taxes, Benefits, Cost/Fees etc & more imp the Total Transfer Value ie how much is in the pot as of today.
I've been in the Financial Sector for 15+ yrs & my last job was with the dept of works & pensions. Pensions are a Minefield so you need to tread very carefully.
Yes you can transfer your pension to a QROPS Scheme as per HMRC Guidelines.
One particular QROPS Scheme stands out base in New Zealand, reasons below.
Once you have been a UK non-resident for tax purposes for over five years it is possible to realize benefits not available to you under UK pension rules by transferring your UK pension to a non-UK pension plan. These benefits include:
1)Ability to take a lump-sum distribution greater than the 25% limit mandated by UK rules.
2)No need to annuitize payments from your pension scheme.
3)No withholding tax on distributions.
4)Greater control and flexibility for your pension money.
5)Leave unused pension money to your heirs – not to your annuity provider.

Once the five-year UK non-residency period has passed, you can realize the benefits outlined above as a result of the fact that New Zealand has a more flexible pension system than the UK . Specifically, you could at that time request a distribution from the New Zealand receiving scheme to a bank or brokerage account in your name anywhere in the world.

I did warn you its a mine field? Any questions? I wont confuse you with any more info at this stage.

Its easier if you speak to me should you have any further questions on 00 91 9008243953 & 9742713734, I am currently in India.

Take Care
Regards
Johann

knife-edge

Thank for your informative reply Johann. Yes, pensions are a difficult area, even for a reasonably financially aware person as myself!

I have only been a non-UK resident for 3 months. From what you state, it seems as though I should not make any decisions until 5 years time at the earliest. I haven't really weighed up all the pros and cons of a transfer, so I will probably leave things for now, and then examine my options when 5 years is approaching.

By the way, what is a QROPS scheme? Are you stating that I might be able (and might benefit) from transferring my UK pension to New Zealand in 5 years time? I live in Hong Kong and have no ties with New Zealand whatsover.

Thanks again,
K-E

FirstKnight1967

Hi

QROPS = QUALIFYING RECOGNISED OVERSEAS PENSION SCHEME.

If you transfer your Pension to a QROPS, you would have to wait 5 yrs (you have to be a non tax resident for 5 yrs) to realise the funds as per HMRC Guidlines. During the 5 yr period you can make a withdrawal but its subject to a 40% tax + a 15% surcharge as per HMRC Guidlines.

Ultimately it depends on you, your situation & circumstances Short & Long Term. I cant suggest & or advise, wheather you would benefit or not without knowing all the details, however you would need to make a rationale decision based on what you know & any other infomation provided to you.

ps you dont have to be a resident of New Zealand to transfer your UK Pension.

Take it easy
Johann