blondiefee

We are moving to Oz mid-2016 - I am Australian (lived and worked in UK for last 27yrs) and partner is British. Partner visa sorted.
Question is
1/ Can I transfer my workplace pension still to OZ into a super annuation fund?
2/ Partner has 30yrs workplace pension - is it best to leave in UK or again, is it possible and best to transfer to a fund in OZ? (totally appreciate the fluctuation in currency issue).

Experience and advice please??

quoll

No experience with super but it might be wise to wait and check that you're going to stay before you move anything - once Australia has it they won't let it go. Also, have you got your UK citizenship sorted before you leave? This is really important these days as getting back on a spouse visa should the need arise is nigh on impossible unless you're very well heeled.

blondiefee

Thanks quoll - won't be moving anything in hast. My UK citizenship sorted. Just wondering what our options are legally and best financially. Cheers

marr

Hi blondiefee. If you have decided you want to get your funds out of the UK, then it might be better to consider a QROPS in a neutral jurisdiction where you retain flexibility if you decide to move again in future. A popular choice for Australian residents would be a Maltese QROPS - Malta has a double taxation treaty with Australia and is part of the EU so benefits from MiFID regulation. (I deal with these types of transfer on a regular basis).

blondiefee

Thanks Marr... that's interesting. With the new pension laws in the UK someone suggested that I could now no longer take my pension funds, but from what you are saying this is not the case. Thanks - I'm in the process of making further enquiries, as we just would like to know what all the options are and what will benefit us most in the future. Cheers

Otto The Squid

What type of scheme is it? If final salary, you will need to use a UK pension transfer specialist to undertake the analysis. If a transfer appears to stack up, to avoid the currency issue you could use a SIPP ( far more protection under FSCS in the UK than in the rest of the EU ) and hold funds in AUS Dollars and then consider a move to a Super. But, you need to link with a UK and Aus adviser on this- quite complex.

marr

I think that because of that last issue - linking UK advisers with Aus ones - transfers to superannuations will become more arduous and therefore less and less common. Most people will feel daunted by the prospect of having to pay twice for advice.

This shouldn't be an issue for European firms - they can passport into the UK regulatory system through MiFID providing they have the appropriate qualifications (AF3 or G60).

The debate over SIPPs vs Maltese QROPS will shift as the rules continue to change. Once full pension flexibility appears in Malta, QROPS will almost certainly have the edge - particularly for those investors with larger funds.

Otto The Squid

I would have thought, in the case of DB schemes, a passporting firm from the EU would have to have FCA sub permissions for transfers( Pension trustees will surely check that) . What about moving to a Super within 6 months of being Aus resident to avoid tax on the growth of the fund ?

So a SIPP, which costs less than a QROPS, held in Aus Dollar funds could be part of the exit plan. Anyway, run it by an Aus adviser to see what he/she thinks.

marr

The information I have (I could be wrong) is that an EU adviser can obtain those permissions with the appropriate qualifications and by showing full compliance with the UK regulations. Otherwise, what is being proposed will likely fall foul of EU law (free movement of goods and services).

The cost of a using a QROPS trust isn't high - the cheapest I know of is about £350 per annum. Some SIPPs are cheaper, and some are more expensive. It depends on the features you want/need.

blondiefee

Thanks - looks like I do have options... cheers for your help.