johneastriggs

Hi all,
I have been in NZ now for 3 and a half years.I have a private pension currently in UK and is about to mature and pay out in 2 and a half years. I just wondered can I move my private pension to NZ and get the payout in 2 and a half years and draw from it.
Or do I leave it where it is.

(Someone said I had 4 years to transfer from when I moved to NZ)
Any help gratefully recieved

Chocoholics

I'm no expert but I think the 4 years is probably referring to the 4-year tax exemption new migrants get i.e. exemption from paying tax on money overseas including transferring pensions. I would talk to an adviser as it is complicated (especially with a few law changes in the pipeline UK side) and will depend on your individual circumstances. In theory you can move pensions here and you will find lots of information on this forum if you do quick search.

chc4me

Before transferring a pension there are many factors to consider such as the type of benefits available in your current scheme compared with a New Zealand scheme, any tax consequences of a transfer, advantages and disadvantages of any decision, and you should ask yourself what happens if you leave the scheme in the UK as well as what happens if you transfer?

There is a tax exemption for pension transfers for the first 4 years from when you arrive in NZ. This exemption allows a pension fund to be transferred to NZ free of NZ tax. If a transfer occurs after the exemption period then a percentage of the amount will be subject to tax (the percentage subject to tax increases each year).

A transfer must be made to a scheme permitted to receive a UK Pension transfer. Withdrawals are allowed from age 55 as a minimum (some schemes are 60, some are 65), definitely no withdrawals before age 55. Under existing rules, a maximum withdrawal of 30% is allowed - with some conditions - while the remaining amount can be withdrawn over time.

There are changes to the laws in the UK which could potentially allow higher withdrawals, but we are still considering the impact of the new laws which will begin in April 2015.

NHS, Teachers and Government funded schemes will not be able to be transferred after 5th of April 2015, so if you have one of these schemes, you may be too late. Defined Pension Benefit schemes may have additional requirements to meet (and therefore costs) before a transfer is permitted.

Hope that helps. Pensions are quite a technical area and often one question leads to another......

johneastriggs

Hi Chocoholics
Thanks for the info will contact an advisor and keep you posted

johneastriggs

Hi there CHC4me what a great answer thanks for that this is what I was looking for.Cheers
John

curieroy

There is a tax exemption for pension transfers for the first 4 years from when you arrive in NZ. This exemption allows a pension fund to be transferred to NZ free of NZ tax. If a transfer occurs after the exemption period then a percentage of the amount will be subject to tax the percentage subject to tax increases each year.





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johneastriggs

Cheers for that curieroy,Currently in the process of the transfer as the 4 year mark is approaching
Thanks again