NHS Pensions
#16
Re: NHS Pensions
Will the payment be made as a one time settlement payment, or will it become a regular payment? If it is a regular payment to you (like a pension), you will need to declare it as income here in NZ.
#17
MODERATOR
Joined: Oct 2011
Location: Wellington - I miss Castles, the NHS & English school system
Posts: 9,077
Re: NHS Pensions
chc4me - if we move my husbands private pension over before the 4 year time limit into either the kiwisaver or QROPS can we still move it out if we decide that we will not retire here but not sure where we would retire to. or is it better at this moment in time to just leave it where it is and take the hit on transferring later if we are still here in our pension years?
#18
Re: NHS Pensions
The advantage of transferring before the end of the 4 years is zero tax on the transfer. It also means at the time of retirement, no tax on withdrawals.
If you are unsure where you might retire, then a transfer to a QROPS would be the more flexible option and give you the most choice if you move countries. A transfer to Kiwisaver creates potential complications and delays.
To expand on that, if you move countries (but not Australia), KiwiSaver can be withdrawn after 12 months. However if you return to the UK, this might actually create a tax penalty under UK regulations. If you hold the funds in a QROPS, your adviser can plan for any potential move and provide the best solution.
Thanks for the question
If you are unsure where you might retire, then a transfer to a QROPS would be the more flexible option and give you the most choice if you move countries. A transfer to Kiwisaver creates potential complications and delays.
To expand on that, if you move countries (but not Australia), KiwiSaver can be withdrawn after 12 months. However if you return to the UK, this might actually create a tax penalty under UK regulations. If you hold the funds in a QROPS, your adviser can plan for any potential move and provide the best solution.
Thanks for the question