CathnPaul

Has anyone used this company (www.prismxpat.com) to move their pension over to oz??? They claim to be the only company with an 'actuary' working for them in the UK.

They are giving some good info but dont want to waste our money if it isnt necessary. They are charging approx £500 to move the pension over and state it can take up to 12 months to move the pension over.

If you havent used this company then maybe you can suggest a company to help move the pension over?? and is this timescale correct of up to 12 months??

Fardell

I haven't heard of Prism - my reaction is that 500 pounds doesn't sound too extreme, but 12 months does. We looked at moving our pensions over about a year ago, but decided not to for a variety of reasons - some logical, some not. My view was that I would prefer dealing with an Australian based company - someone I could call or sit down in front of if things went awry. A bit old fashioned but .. . My understanding was that this wasn't rocket science but there are new regulations governing the transfer of pensions from the UK - search this forum.

So, I would try finding someone in Queensland who does this (and has a AFS licence) - otherwise have a look at www.exfin.com - they deal with returning Australian expats and the issues are basically the same.

Bix

Fee sounds high.
Speed of arranging a transfer is often down to the co-operation level received from the UK fund. Mine was done and dusted in about 1 month but a colleague in a different fund took 6 months.

Yes, probably better off waiting until you're in Aus.
When you get set up with a Super here your fund may be able to do it for you at a competitive price.
I am finding things like this are cheaper in Aus.

Poppy

Hi

We went to see Global Destiny, the lady was very nice, but she said that they charge £500 for a report for pensions - they look at your pension or an actuary does and then conclude if they think you would be better of leaving it in the UK or taking it, lots of factors to look at like tax if you left it, how would it increase if you left it, how would it increase if you took it etc. But this is what I found a rip off, if you decide to take it, they charge 5% of the value of the pension to transfer it!!

I called Prism Expats and I thought they sounded very good and it is right what he said about the Actuory's and no one else is qualified to do this report and analysis but them. they also offer financial advice if you are renting your house out here and the tax implications - we want to get some equity out and take it with us and they know both UK and Oz tax laws and give tax saving advice as to what best to do with your money if you don't buy immediately in Oz! They also charge 5% to transfer your pension should you go ahead and I think it seems to be the going rate!

Basically, I have probably waffled too much, but I think the £500 is a lot, but if you get sound advice it could save you a lot of money in the long run. If they think you should move it, do it yourself, that's what we are going to do and I think it is pretty straight forward, you just ring your pension people and ask for international transfer forms and look on the internet at companies in Oz. The good thing is, is that the pension (super annuation) that you build up in Oz is tax free when you retire, unlike here!

I hope I've been helpful because I'm very confused!!

Good luck

chris warren

Hi. We are using PrismXpat to transfer our pensions to Oz in 2007. I have found them to be excellent so far. If they are only charging you £500 I would say you are doing well. Don't forget the fees/commission at the other end! We started off with Montfort but ditched them after spending over a grand on fees because frankly we didn't like the top man there who spent more time talking about himself and his family than he did about our requirements. So, I reckon you should be OK with Prism but would like to hear how you get on. Chris.

toon williams

We have just spoken to Prism as we are trying to collate information about finances etc etc, we thought they sounded very good, although we dont know of anyone who has used them, they do come extreamly highly recommended by our agents!!

Would also be keen to hear how you get on!!

Fardell

I would feel (very) uncomfortable paying 5% to transfer my pension - and I presume that is before certain other costs and subject to a minimum payment? The sort of analysis undertaken should be basically the same whether your transferring 25K or 250K - so why pay 500 pounds in the first case, 5,000 pounds in the latter! Smacks of real estate agency rules - at least in that case the agent only gets more if you get a higher price.

Again, I think its worth contacting some Australian based financial planners and, if you are lucky enough to know who you are going to work for, the superrannuation fund that cover most of their employees. It might be easier than you think.

Poppy

I agree with you, 5% is extortionate and I also said the same thing to the companies I spoke to, if you have £50,000 or £500,000 the paperwork is the same and their reply was - there is insurance to pay incase they get it wrong and your money doesn't do as well as expected in the future and also, it is a very complex process!!! I for one will not be letting them transfer it, although I will probably get the report done for £500 as I would like to know what would be best to help me make the right decision and I know that by law, they have to give an honest opinion, that's why these actuary's are used as no one else is allowed to make that judgement.

I'll let you know how I get on, once I get round to doing this, I keep putting it off, but you do have to have it sorted within six months of arriving otherwise, if you have left it in the UK, you pay tax on the amount it has increased since arriving in Oz and will continue to do so every year! But these actuary's have to decide if you might be better off leaving it in the uk even with all the tax as sometimes there is a big premium from your pension company for taking it out and the difference is not going to be worth while that's why the report is good to have!

Fardell

Hi Poppy

Seems we agree regarding the fee , but I am not sure about some of the things mentioned. For example:

1) Do they give you some form of income or capital guarantee? You mention this is the reason they charge a sliding fee because of insurance and the prospect that things don't go as well as expected. If they give a guarantee, I would look at the small print .. this sort of thing is just not insurable in the medium to longer term. I just don't undersatnd this reasoning

2) If your pension is an employer's pension I think it's excluded from the so-called FIF (foreign investment funds) legislation in Australia. If it's a personal pension then I believe it's included within FIF and you are potentially liable for gains - including unrealised capital ones.

I would wait until you get here unless you are not spending much or committing yourself ... you can do a lot in 6 months

Fardell

Poppy

That's interesting, I didn't realise that! I have an employer's pension, a private one and a FSAVC, but they didn't explain that the employer's one would be exempt and that's the one with the most money it it, which would change things a lot, especially if I wasn't going to pay tax on it anyway!

I need to get professional advice from somebody who is not trying to sell me their service!! To be honest, I hadn't even thought about doing anything with my pensions when I go, until I went to one of the Oz exhibitions and they said it needs to be looked at and that got me thinking!

Thanks for your help, I will look into it.

Poppy

Fardell

Just a rider Poppy - while it might not be taxable now, your UK employer's pension would be pensionable as ordinary income in Australia when you retired and drew on it. Pensions drawn from Australian superannuation funds will (now) be non-taxable if you are over 60. So, there is still an issue whether you should transfer or not. We kept ours in the UK because we liked the thought that we would have income other than AUD - depends on your personal situation.

As said, if you move to an employer here - it's possible the associated super fund will assist you in transferring your funds.