Mhairi

Sorry, I know this must have been asked a thousand times before, but the advice seems to change (and I am easily confused).

I've got a couple of frozen personal pensions in the UK. I moved to Australia in August on a PR visa and my new Australian employer is now paying into a personal pension (AMP Super). The Australian financial adviser at work is suggesting that there are tax advantanges of transferring both my UK personal pensions into the AMP fund as long as I do it within 6 months of arrival.

I'm not intending to return to the UK. Has anyone else been in this situation? Any advice gratefully received. Thank you sooooo much.

mikpiy

I am currently going through the process of transferring my UK pension as well. My Oz super fund (Asteron - part of Royal Sun Alliance) is now set up and they are now speaking directly with my UK pensions people to organise the transfer. The Oz super fund must be a QROPS (Qualifying Recognised Overseas Pension Scheme) or else they may not be able to transfer it.

Mhairi

Thanks for your reply. Yes the AMP is QROPS. Did you take any advice before going ahead with the transfer?

mikpiy

Similar to yourself, I was advised by a Financial Advisor to do this. If you try to transfer after 6 months, then you are penalised a certain percentage of your pension so you lose out on some money. I also don't intend to return to the UK so theres no point in waiting until I retire before I get the money, when i could have it in my super fund (hopefully!?!) gaining money via the various investments funds I have gone with.

lesleys

You might like to consider funds other than AMP for your transfer. Try searching this forum for QROPS. Make sure you don't lose a chunk of your pension in transfer charges.

Bix

Pensions can be transferred to non QROPS schemes.....but in that case the UK government will tax it by a whopping 40%.

Bix

If I remember correctly transferring within 6 months of tax residency means no Aus tax will apply.

Longer than 6 months and 15% is applied.....but only on the growth.

The O'Neills

Mhairi,

When I spoke to my pension holder in the UK (mine is frozen too), I was advised to leave it here (in UK) as transferring it would incur big penalties. I'll watch this thread with interest now, and get independent advice!

Nic

Bix

If I was your pension holder maybe I would have said the same.
Get the facts. What are the actual penalties.
He may be right.....he may be wrong.
It's your decision to make and to do that you need the facts.

Bix

I was in a final salary scheme in the UK and was told you should never consider moving one of these. My pension now sits in an Aus Super fund.

I like the flexibility here. I like the fact the money I pay in is mine.

If I popped my clogs in the UK my contracted out company scheme would have paid my missus a very generous one third of my pension . Here she will get 100%.

I can decide where the money is invested and at what risk level. Not some faceless Trustee who I don't know and will never meet.

If I wish I can take money out of the Super and invest it in property which in turn will pay returns back into the Super.

I can salary sacrifice directly into the Super for tax breaks.

My Super is growing. My UK pension was making nothing. I didn't bring it over within the tax free 6 month period but paid no tax. My UK pension growth was zero so no tax to pay.

I like the Aussie Super. Makes the UK pension schemes look antiquated.

Here, I feel more in control of my own destiny.

Scotty1

Hi Mhairi

I understand Alan Collett at Go Matilda specialises in this kind of thing. The best advice will be based on your circumstances and an adviser having an understanding of uk pensions as well as those in Oz. Given you can't undo whatever you decide it would probably be good to get independent advice.

Scotty

OzTennis

Or get advice (for free) from those who have had good independent advice? Sorry Alan but that's what this forum is largely about. Yes, circumstances may vary and the law may change etc but get advice from those with similar circumstances who have done the same thing recently would be my advice.

A quiz question in the UK in the near future which will stump most people is 'what is a final salary pension scheme?'

OzTennis

Alan Collett

Hi OzT. No offence taken!

Candidly, I'd not be making any decisions based solely on comments made by others on discussion forums in any area of one's life, and particularly not related to one's finances. Each person's circumstances are different, and to make decisions about personal finances without taking professional advice is (to me at least) reckless.

Use discussion forums to get a flavour of the points at issue. Then engage a professional and ask him or her the pertinent questions. In so doing you get more out of the consultation.

The same principle applies to the skills assessment/visa application process.

Best regards.

brissydeb

Not moved over yet but have a UK pension and investments and not too sure how this will affect me when i move? any advice would be great.

Pipers Mummy

.....Be careful - I think there is more to a 'frozen' Final Salary UK pension scheme than just a 'transfer value' - What about a spouses pension, spouse death benefits and so on which you may be waving goodbye to ? Of course, any Aus super scheme would love to have your transfer 'cash value' but I think it is a more complex subject isn't it ?