Tom Pratt

Hoping to emigrate on Contributory parents Visa.
About 4 1/2 yrs before I retire (@ 65)
I guess I will have a UK pension and three other small pensions (not amount to a massive amount but enough I hope)
How do I control this? (Do I have it paid into my existing UK bank account and draw on it from Oz (paying the commission each time)
Do I have to pay tax to the UK govt or Oz govt or both - what's the best way to go?
thanks

Tiawamutu

If you are moving over permanently (which I guess you are) you can transfer the funds over to Australia, and if you do it within 6 months of arriving, you don't pay any tax.

I have gone over the 6 months mark, so I think I pay 1% of the funds transferred for every year I don't transfer it (I think that is right)

Tiawamutu

Also just realised it's you first post on the forum....

Welcome to British Expats

Vin 'n Bin

Centrelink will give you all the information you need about UK pensions ...that's if you have to register with them ...will you?

ray2gill

Two things -

• your UK state Pension will be frozen at the rate you are being paid the day you leave the UK.
• You cannot transfer a state pension, other pensions mostly if the pension companies agree to it.

For information on this type of thing suggest you look at http://groups.yahoo.com/group/BERIA/
whilst this site is for 410 visa holders (temporary residency retirees) you can get general info.
This site also gives info about the campaign to get UK retirees pensions unfrozen.

Vin 'n Bin

Oh's UK pension is paid into his back account each month

MartinLuther

I would DIY transfer the pensions over to Aus (unless it's a final salary scheme). The main reason for this is that it will come out tax free. Also you are not forced to buy an annuity which will die when you die. Here, you can do with it what you like with the money when you get to pension age.

Not sure how the new QROPS rules affects someone who will start collecting in less than 5 years. QROPS came in after I left.

Tax on transfers. As said you have 6 months period where you can transfer it without any tax implications. If you transfer after 6 months then you pay 15% tax on the gain (the difference in value between when you arrived and when you transferred the money). Remember that the expense of transfer can be claimed and will reduce the gain (and tax). Unless you take years to do it the tax thing is not a big deal.

RenShen

Hi, my husband has a civil service pension where he has done 31 years. When we move we planned to look into moving it with us but I note that you say "unless its a final salary scheme". This applies to us so I wondered why you made this exception please?

Grayling

It is very hard for any pension scheme to match the benefits of a final salary scheme.

G

MartinLuther

Final salary schemes are like the gold dust of UK pensions schemes, which is why they're not as common as they used to be. The benefits of a final salary scheme can sometimes outweigh the benefits of moving it to Aus. With the other types of pension (COMP, Group, Personal or Stakeholder) I can't see any benefits of keeping them in the UK if you move permanently.

I personally had a COMP, a Group and a Personal Pension so I don't have direct experience of Final Salary schemes. Hopefully someone with direct experience can chip in with the pros and cons.

Grayling

I am already receiving a final salary pension.

It is index linked and based on my final year's salary.

I am still in my 50's

It would be madness to give up such a scheme lightly

G

MartinLuther

I agree.

Sally Simpson

Any ideas as to where to get impartial advice on this pensions issue?
I am on a final salary sceme with the NHS but have over 20 years left to work so really not sure what to do for best!

Wol

A Final Salary Scheme doesn't have a sum of cash allocated to the individual, as would be the case in a personal pension.

So on retirement and commencment of pension payments everything depends on actuarial figures. Therefore you couldn't take a sum out and transfer it to Australia.

I would imagine the same applies to the pre-retirement years: your own contributions are aggregated into the scheme's capital and can't be apportioned to an individual.

That's why, I think, a foreign final salary scheme isn't taxed on gains by the ATO - it wouldn't be possible to determine the individual's capital involved.

All the above is just my opinion....

Sally Simpson

At the Expo that we went to back in Oct 2006, we were advised by an Australian company that we should transfer.
It is very confusing, hence my request, if anyone has a recommendation for impartial advice, I would love the contact details please!