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UK Pension Transfer

UK Pension Transfer

Old Nov 19th 2018, 12:56 am
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Default UK Pension Transfer

Hi, Has anyone Cashed in a UK Final Salary Pension & transferred it to Australia since the QROPS regulations changed, particularly one that was valued above the 3 year look forward limit.
If so would you possibly post how you did it both in the UK & in OZ.

Regards John
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Old Nov 19th 2018, 3:38 am
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Default Re: UK Pension Transfer

Originally Posted by Howzat View Post
Hi, Has anyone Cashed in a UK Final Salary Pension & transferred it to Australia since the QROPS regulations changed, particularly one that was valued above the 3 year look forward limit.
If so would you possibly post how you did it both in the UK & in OZ.

Regards John
AATOT Already Another Thread On This...

https://britishexpats.com/forum/aust...drawal-915860/

Still in the process, been trying and financial planners associated with Super Companies won't touch it. I've not met an independent financial counsellor I trust yet. So I'm handing the Gurnsey to my trusty long term Tax Accountant during next years tax year.... So after June 30th 2019. I plan to leave work just after June and use that lump sum as my taxable income for a year, and hopefully pay little or no tax during the 2019/20 financial year. The big hurdle for me at present is the fact that Willis seems to only want to pay my lump sum into a UK bank account. HSBC will let you open a UK account as long as you have an Australian one first. However, they require a 500-pound movement per month. I'm going to phone Willis in Norwich and see if I can extract a cheque out of them.

So still very much in the process for me. The form filling is incredible. I've got over 30 A4 Pages to go through.
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Old Nov 19th 2018, 10:07 pm
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Default Re: UK Pension Transfer

Thanks Ozzie for the reply, I have read your thread a few times & it looks like we are in a similar position.
I have contacted a few companies who advertise on the net & the consensus is its Clearly do-able but fairly difficult. (expensive)
I believe the sequence of events are -
Set up A UK SIPP - (Easily done online)
Transfer Cash in value to UK SIPP (needs to be done under advice from a UK Financial Advisor) Quoted 2-3k Sterling (WTF!!!)
Set up Australian SMSF that meets QROPS requirements (again can be done fairly easily with the right forms)
Transfer out of UK SIPP to Australian SMSF (up to $300k + growth so maybe up to $500k) This is made up of the $100k a year with a forward loading for 2 years)
After 3 years another $100k/year etc etc
The figures i am being quoted to do everything at this end are between 2-5% of the funds value - which i find unbelievable
ie 100k Sterling @ 2% = approx $3.5-4k
250K Sterling @ 2% = Approx $8750-10k
500k Sterling @ 2% = Approx $17500 - 20k
At any more than 2% the figures are even more ridiculous.
If anyone has completed a sizable transfer since 2015 it would be nice to hear how you did it & who you used.
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Old Nov 21st 2018, 11:19 am
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Default Re: UK Pension Transfer

Billy T,

I have a UK SIPP account and an Income Drawdown account (into which some of my SIPP has been transferred to enable me to take an income, and from which the 25% tax free amount has already been taken).

Can either of these types of account be used be used as a source for transfer to a SMSF?

What happens in the instance that any transfer (of the remaining SIPP) triggering a crystallisation event as it would, most likely, take me over my lifetime allowance?

Once transferred, would the funds remain out of my estate for IHT purposes (either UK or AUS IHT)?

Apart from the obvious currency risk, does it always may sense to transfer funds to Australia if I live there (0% income tax, although tax on ‘gains’)?

Thanks
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Old May 22nd 2019, 8:02 pm
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Default Re: UK Pension Transfer

Howzat,
I'm wondering if you've found a Financial Planner to handle your UK Pension transfer. If so, could you share your experience or PM me, please?

Cheers
Rosemary
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Old May 23rd 2019, 12:06 am
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Default Re: UK Pension Transfer

Originally Posted by Howzat View Post
Thanks Ozzie for the reply, I have read your thread a few times & it looks like we are in a similar position.
I have contacted a few companies who advertise on the net & the consensus is its Clearly do-able but fairly difficult. (expensive)
I believe the sequence of events are -
Set up A UK SIPP - (Easily done online)
Transfer Cash in value to UK SIPP (needs to be done under advice from a UK Financial Advisor) Quoted 2-3k Sterling (WTF!!!)
Set up Australian SMSF that meets QROPS requirements (again can be done fairly easily with the right forms)
Transfer out of UK SIPP to Australian SMSF (up to $300k + growth so maybe up to $500k) This is made up of the $100k a year with a forward loading for 2 years)
After 3 years another $100k/year etc etc
The figures i am being quoted to do everything at this end are between 2-5% of the funds value - which i find unbelievable
ie 100k Sterling @ 2% = approx $3.5-4k
250K Sterling @ 2% = Approx $8750-10k
500k Sterling @ 2% = Approx $17500 - 20k
At any more than 2% the figures are even more ridiculous.
If anyone has completed a sizable transfer since 2015 it would be nice to hear how you did it & who you used.
Willis are now telling me they wont transfer the trivial lump sum, because of my Australia Post superannuation makes the total over 30,000 pounds. Now Superannuation in Australia is not a pension until the day you convert it into one when youretire, so how they can add the UK figure on the Australian figure before I've retired is beyond me. The cycnic in me tells me they dont want to realease the funds. It's 23K GBP to be exact, not a massive amount, but also not to be ignored.

I've engaged someone this end, early stages, and am waiting to see if Willis will talk to them. The UK advisor this end tells me what Willis are saying is wrong..... This is going to get interesting.

If I take this as a Pension which seems to be Willis direction, it will affect my Centerlink Government Pension this end to the tune of 50cents in the dollar. I've got no idea how they take current superannuation savings into account, whilst discounting the effect it will have on the Australian government pension.

So I really need to get this sorted before I turn pension age in 20 months.

BTW I would not open a SMSF in a blue fit.

See Scott Pape (aka the barefoot investor) into the reasons why.

Far far better off with Host Plus products, which actually mirror SM funds without the high costs in running SMSF, let alone the potential dangers..... The only reason Australian Superannuation funds are not QROPS regulated is the fact that you can draw down on them before Pension age in certain circumsatnces.... which is a big no no in UK legislation. Other than that they seem to have far far more flexibilty on what one and cant invest in. Ergo a lot more control over ones funds.

Do read Scott Pape words on SMSF's before going anywhere near them would be my advice.

Last edited by ozzieeagle; May 23rd 2019 at 12:08 am.
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Old May 23rd 2019, 5:03 am
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Default Re: UK Pension Transfer

Originally Posted by ozzieeagle View Post
Willis are now telling me they wont transfer the trivial lump sum, because of my Australia Post superannuation makes the total over 30,000 pounds. Now Superannuation in Australia is not a pension until the day you convert it into one when youretire, so how they can add the UK figure on the Australian figure before I've retired is beyond me. The cycnic in me tells me they dont want to realease the funds. It's 23K GBP to be exact, not a massive amount, but also not to be ignored.

I've engaged someone this end, early stages, and am waiting to see if Willis will talk to them. The UK advisor this end tells me what Willis are saying is wrong..... This is going to get interesting.

If I take this as a Pension which seems to be Willis direction, it will affect my Centerlink Government Pension this end to the tune of 50cents in the dollar. I've got no idea how they take current superannuation savings into account, whilst discounting the effect it will have on the Australian government pension.

So I really need to get this sorted before I turn pension age in 20 months.

BTW I would not open a SMSF in a blue fit.

See Scott Pape (aka the barefoot investor) into the reasons why.

Far far better off with Host Plus products, which actually mirror SM funds without the high costs in running SMSF, let alone the potential dangers..... The only reason Australian Superannuation funds are not QROPS regulated is the fact that you can draw down on them before Pension age in certain circumsatnces.... which is a big no no in UK legislation. Other than that they seem to have far far more flexibilty on what one and cant invest in. Ergo a lot more control over ones funds.

Do read Scott Pape words on SMSF's before going anywhere near them would be my advice.
Why don't you just leave it in the UK? Sure would save all the hassle of transferring it over here and I believe that a UK pension can now be taken out as a lump sum - something that until recently was not possible

Agree about Host Plus - definitely the best option for anyone who doesn't want the hassle of a SMSF. A SMSF is a very good option but it requires the trustees to be switched on and active
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Old May 23rd 2019, 10:16 pm
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Default Re: UK Pension Transfer

I've got action happening on this now..... Someone deailing with it. So hold everything guys and I'll let you know the outcome.

Fee if it lands will be circa 1800 AUD..... It's the best I could find, that includes a Aus Tax return for the financial year it lands.

The amount of paperwork involved is mind boggling. Glad I've found someone to take it onboard.

Willis group UK have agreed to talk to them,

No point referring anyone yet until I know the result.
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Old May 24th 2019, 4:59 am
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Default Re: UK Pension Transfer

Originally Posted by RosemaryA View Post
Howzat,
I'm wondering if you've found a Financial Planner to handle your UK Pension transfer. If so, could you share your experience or PM me, please?

Cheers
Rosemary
Re-posting as I'd still like to hear from Howzat and others about your successes with Financial Planners and UK Pension Transfers.
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Old Yesterday, 3:16 pm
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Default Re: UK Pension Transfer

Has anyone used Montfort or PrismXpat in UK?
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Old Yesterday, 10:15 pm
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Default Re: UK Pension Transfer

Hi Rosemary, i looked at quite a few FAs, & ended up with Simon Harding Associates, based in Adelaide but comes to Qld most months, very knowledgable & qualified both UK & Oz.
we are in the process of transferring but it going to take a few years & is quite complex, his knowledge & advice i found priceless.
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Old Yesterday, 11:42 pm
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Default Re: UK Pension Transfer

Not sure how close everyone is to retiring, but unless you have well above 1,500,000 AUD in assets, that means all of your pensions and wealth combined besides your own house as your house is exempt. Then you will need a Financial Advisor that knows the machinations of Centerlink.

I've not encountered one of those.

The reason being is the effect your assets have on your Centerlink pension. How the assets test affects your Australian Government pension. The closer ones has to the cut of point for a couple of AUD 1,060,000 Million in assets including pension the more one has to take Centerlinks assets test affect on your future pension. This is vital within those last 5 years of your approach to Australian Pension age. There are ways means and methods of shifting money around to come under the threashold and reduce the threashold, which is what the aim should be in those final years pre retirement.

No UK advisor gets this. They talk about tax, they never talk about Centerlink.

Maybe it's different for me as I've been here 40 years and qualify for the full Aus Pension..... however I think anyone that has been in the Aus Workforce for 20 years qualifes. So anyone that has been in the Aus Workforce for 20 years especially if both of you have you really need to take this onboard.

That cut off figure above means I cannot downsize until I've "Adjusted" some liquid assets..... Do your UK people tell you this? The last thing you want to do is lose the Pension Card (AKA free medical, cheap prescriptions, discounted utilities etc etc etc).... If' you've well above AUD 1,500,000 million in liquid assets ignore this post. If not take note.

If your over 55 and cant find anyone independant to advise the affect of your choices will have on your future pension, then Centerlink themselves have independant free advsors as they are truly invaluable. I'd say it's a prudent move to look at this.

Last edited by ozzieeagle; Today at 12:01 am.
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Old Today, 5:38 am
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Default Re: UK Pension Transfer

Hi, transferred mine over around 2 years ago. Set up an over 55 SMSF and kept it in GB pounds in a Westpac foreign currency account because the exchange rate was woeful ( just after the Brexit vote) . Anyhow found financial advisers that have both Australian and UK offices, and my SMSF funds are now invested via the UK office of the Australian financial company, awaiting hopefully for a $2 exchange rate, it was $1.38 when i was in the process of transferring. I have daily access to view my investment via Transacts financial platform.
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Old Today, 6:46 am
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Default Re: UK Pension Transfer

Robo43: That's an interesting idea - about the Westpac FX account. Thanks for that.

Ozzieeagle: you do raise a valid point. Gifting etc needs to be planned for as does the Commonwealth Seniors Health Card. Thanks for reminding us of these.

Last edited by RosemaryA; Today at 6:50 am.
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