Jamesy

Just wondered who has decided to transfer their pension to Oz or will do so? I understand you only have 6 months to do so before you are charged tax on any increase in the fund growth.

Couldnt make Emigrate 04 today, struck down with nasty cold

markeh

Hiya Jamesy

hope your cold is getting better?

It's the single bigest worry for me. I'm in a final salary scheme and when ever I see the transfer value it looks very low. 14 years worth of contrubutions is only worth about 20K


I plan on going tomorrow to Emigrate 04, you could do the same?

Bye
Mark

Jamesy

If the stinkin cold is any better will go to the show tomorrow, feel ruff!

I'm in a final salary scheme too, and a good one at that, worries me what to do?

wongstonn

Collett and Co have some free factsheets available on financial matters, including pension transfers. You can get them via this link:

http://www.collettandco.com/factsheet.cfm

I was at Emigrate 2004 and spoke to some of the financial firms - most of whom wanted my name and address for another day. I would suggest some closer questioning. Some are definately tied to particular Aussie financial companies and will only offer a limited range of products.

I asked one firm about their charges. $500 fee plus a percentage of the funds transferred. The percentage varied between 1% and 3% depending upon the sums transferred. For many people that could be quite a lot!

Does anybody know whether it is possible to transfer a pension without an agent? Has anyone had the guts to attempt this themselves (not many, I bet)?

Neil

markeh

Hi wongstonn,
I'm all for doing things myself if I can save money, and 3% is better than nothing.

Bye
Mark

GoodwinFS

Hi Mark, saw your post. I am actually an Adviser in Australia. It should cosst you nothing upfront as you can do alot of it yourself once you actually get to OZ. Firstly, just get transfer docs from your current pension plans in the UK. Once you get to Oz you will need some employment docs before you can get the ball rolling anyway.

If I can assist you, then just give me a buzz via email:

[email protected]

The costs would be incurred by the receiving fund in Australia. They usually charge 3-5% on entry, but as an adviser we can waive it by putting our adviser number.

We do get paid by the fund manager/investment house on an ongoing basis (for ongoing advice - called trail), but this would be taken by the investment house anyway without given any advice or assistance (built into their charging structure that you use an adviser).


Banks are useless as they just want to sell their own product. I am licenced through AXA Financial planning but they don't pay us salary, they just hold our licence.

I don't really care what product we utilise, just as long as it is appropriate for your needs. I have clients all over Australia, so it doesn't matter where you will be located.

My details are:
Email: [email protected]
Ph: 02 9239 0011 (when you get to OZ) - Located in Sydney

To check out my accreditation please refer to the governing bodies website (type in my surname "caredes"):

http://www.fpa.asn.au/home/findaplan...individual.asp

Hope I can be of assistance

bondipom

GoodwinFS could you please not send me unsolicited mail marketing your services. I get enough rubbish in my e-mail thanks.

Please offer good advice here with your details in a small text in a signature. We do not appreciate threads turning into advertising hoardings. You have an opportunity to draw business through the reputation of your advice but please do not abuse this board.

GoodwinFS

Here is some advice then (which was the objective of the post in the first place):

Just thought I would give my perspective and actual transfer experience as I have done this for clients in the past.

1. You can leave your pension entitlements in the uk, and in some cases you have to if they are known as SERPS contributions, effectively not in a private fund.

If the private fund allows you to transfer, you can still leave your money where it is with no tax penalty. In retirement, you can still take your pensions as you would living in the UK. because of the double taxation agreement, you would receive the penion in australia as if you were receiving salary or an income and normal tax rules would apply.

if you decide to take it as a lump sum, i.e as a transfer or rollover to an Australian fund, the 6 month rule comes into affect:

This is detailed in the attachment:

Basically the following occurs:

1. If you transfer the amount within 6 months of become an Australian tax resident, all monies come across tax free and are seen as Undeducted (tax paid) contributions. Very effective in retirement for tax purposes plus if you withdraw these funds in retirement you will receive them tax free.

2. If the funds come across after 6 months, the growth on the funds which you have received since you became a resident would have to be declared in your tax return and you could be taxed at 48.5% on the growth.. The downside to it all is that the funds coming across could not be utilised to pay this liability and therefore you would have to pay it out of your own pocket.

New legislation that has just hit my desk which has been put to govt but passed is that the growth should be taxed at 15% like Australia residents get taxed and it is taken from the transferred funds. this is a win for foreign transfers as it reduces any tax liability plus allows you to access your transfer funds to pay the liability.

I have attached the paper outlining the changes.

Most people would think that six months is ample time to transfer the funds. In my experience as an adviser, some funds can take longer than that just to reply. each fund has its own requirements to release funds, as specified under the individual trust deeds. Minimum requirements are:

1. National Insurance form
2. Letter from current Australian employer saying you are employed
3. Tax return from Australia or tax file number letter.
4. Rollover forms to funds, saying where the funds are to be transferred.
5. Letter from Australian receiving fund saying they can accept the money.

This will get the ball rolling well and truly. Key to it is to get the requirements before you leave the UK if applicable, also to get a quote on retirement pension benefits as you give these up once you rollover the funds.

Also see attached for new legislation being proposed.

Jamesy

Just read this advice and would like to say thanks very much!

GoodwinFS

No problem. If you need any help, just give me a buzz.

regards
George Caredes
[email protected]

Tony Mullaney

George You and i are in the same business only I am based in the USA and do not deal with Australia at all. I am a Brit living in Georgia USA if you want to talk drop me a line.
[email protected]

moneypenny20

We actually went to see and Independent Financial Advisor this morning with our pension queries. He was really helpful. He said my husbands SIX final salary pensions (don't ask) were much better off staying here. (That was the short answer ) Mine is a private jobby that I haven't paid into for about 10 years and he reckoned that if the charges were the same as another type - can't remember which, haven't got the paperwork to hand, then leave that well alone as well.

Strangely, when we were discussing Aus (as you do) he mentioned that his mother was out there, asked us where we were going and it turns out she lives about 15 miles from where we are headed. That small world thing again

Swerv-o

That mirrors the advice I was given re. my two final salary pensions - Leaving them here appears to be the better option, as apparently there is no actual growth in the fund, so no taxable increase. The only problem is that you will obviously leave the relevant employment not at the highest wage for the final salary calculation.

I am keen to set up and start paying into an Aussie super fund, as I have geared much of my retirement planning to Australia now. George - maybe you can help me with this query - If I return to the UK for any length of time, for whatever reason, and I work for the period of time I am there, can I still contribute to my Aussie super fund?

S

Alan Collett

That's fine, but did the advisor talk to you about Australian tax (including taxation on lump sums drawn at retirement age - which are usually tax free in the UK but may not be in Australia) and a comparison of the ability to pass on fund benefits to a surviving spouse as between the UK and Australia?

Also, re your private pension, I take it that Australia's Foreign Investment Fund Rules were also discussed?

If not ... my contact details are below.

Best regards.

cranni

We are in the procees of transferring my husbands, he worked for british gas for 16 years, it is worth more to transfer than it is ti leave it over there. Denise