pomerz

Im sure some of you who have made the long trip will be able to help us as we begin the planning in detail of our big move......

How do we go about transferring personal pensions (mine and my wifes) into something in Australia.......

Forgive me for the 'something' ref but are there similar pension funds over there or do we just start paying into the tax system once we start working?

If someone could help start the ball rolling on this we would be grateful

Thanks

The Pomz

JAJ

Depends on what kind of pension it is. Do you even want to transfer (once you transfer, it's locked in Australia).

Buzzy--Bee

International Pension Transfers

PO BOX 3089
Joondalup
WA 6027


T: ++61 (0) 8 9562 3088
F: ++61 (0) 8 9562 3089
M: ++61 (0) 434 977 842


Buzzy

Andrew Williams

Hi Pomerz

Are you referring to your UK State Pension benefits or private Pensions?

Andy

pomerz

Thanks Guys,
we have 2 private pensions running, from what has been said should we air on the side of caution?

Andrew Williams

Hi Pomerz

There can be many great advantages of having UK Pension money within the Australian Superannuation system.

However there can be reasons in some instances when it does not make sense for one reason or another to transfer it over.

As JAJ says, once a UK Pension is transferred over to Australia if a person decides that Oz is not the place for them then they would not be able to transfer it back until a condition of release was met ie retirement. So really intention to stay is one of the most important factors.

I would say that it is best to deal with a Financial Adviser in Austrlia that has knowledge of Pensions/Superannuation on both sides of the water, UK Pensions come in many different forms.

There is a situation where if someone transfers a UK Pension fund over within 6 months of becoming an Australian resident then no tax is payable on the transfer of the fund to Australia. However a transfer should not be done just on that basis and many UK companies use this as a scaremongering tactic to try to get business prior to people moving.

The 6 month rule does exist however if a transfer is not done within this timescale any tax would only be on the growth of the fund since the date the person became Australian resident to the date it was transferred. It is also possible to mitigate the tax if payable anyway, so as said this rule should not be an isolated factor in transferring Pensions.

If you do want some more information I would be happy to chat further either know or at some time in the future.

I am a UK Expat and a qualified Australian Financial Planner, I have my own private practice here in Australia. I am also a qualified UK Financial Adviser and formerly worked for 2 leading UK Banks.

************


Regards

Andy



(The above information is general information only and does not constitute as advice)

Andrew Williams

Hi Pomerz

There can be many great advantages of having UK Pension money within the Australian Superannuation system.

However there can be reasons in some instances when it does not make sense for one reason or another to transfer it over.

As JAJ says, once a UK Pension is transferred over to Australia if a person decides that Oz is not the place for them then they would not be able to transfer it back until a condition of release was met ie retirement. So really intention to stay is one of the most important factors.

I would say that it is best to deal with a Financial Adviser in Australia that has knowledge of Pensions/Superannuation on both sides of the water as UK Pensions come in many different forms.

There is a situation where if someone transfers a UK Pension fund over within 6 months of becoming an Australian resident then no tax is payable on the transfer of the fund to Australia. However a transfer should not be done just on that basis and many UK companies use this as a scaremongering tactic to try to get business prior to people moving.

The 6 month rule tax rule does exist if a transfer is not done within this timescale however any tax would only be on the growth of the fund since the date the person became Australian resident to the date it was transferred. It is also possible to mitigate the tax if payable anyway, so as said this rule should not be an isolated factor in transferring Pensions.

Regards

Andy

(The above information is general information only and does not constitute as advice)

wongstonn

Hi

Transferring a private pension to Australia is actually quite simple, though to many it can seem more daunting and complex than it actually is.

Essentially,

1. Select you super fund in Australia where you would like your money to be transferred to.
2. From your UK provider, get them to send you their pension transfer form(s)
3. Fill in forms (usually requires some help from your new employers Superannuation department)
4. Send off and wait a few weeks.
5. Done

If you are working for a large employer in Australia, their superannuation department will be reasonably used to doing this, given the number of migrants they are used to working with.

I work for NAB and with the benefit of hindsight the process was rather easy.

If you get an agent to do this for you they will basically do the same thing but charge you for the privilege.

Neil

pomerz

Thanks Neil and Andrew for,
Some very informative advice that has been helpful we are still unsure what to do eventually and will be studying with further support over the months lol, at least we have an idea of the direction we should take when it comes around.

Is there (and forgive my ignorance again) as there is here an age of retirement and a point in time where you have to invest some of your fund with super (any links to websites explaining this would be helpfull). I do apreciate the time spent on these replies as they are never going to be one liners!

Thanks again Matt

Bix

Here's a couple of sites to get you started Matt.
Will give you a good insight into how Superfunds vary from UK pensions.

They are far more flexible IMO.
A big, big difference for me is that the full earnings stay within my family as inheritance unlike my UK pension scheme.

http://www.fido.gov.au/fido/fido.nsf...superannuation

http://www.selectingsuper.com.au/index.html

Andrew Williams

Hi Matt

In relation to D.I.Y, yes the administration side of things is not complicated more so just time consuming, however even with this it can be slightly complex due to things like some of the companies Lifetime Allowance (LTA) questionaires etc.

However, with D.I.Y, unless you fully understand the implications of what you are leaving, the correct process and potential taxation implications and what you are moving into then I would certainly suggest that this route is not recommended.

Yes as Neil states, Agents will charge for administering the transfer, however you will also get a report on the type of fund you have and what you need to be aware of with a transfer.

I do agree that Agents (and by this I mean transfer companies that are not licensed to provide Financial Advice) do charge quite hefty fees without providing advice.

For people that want to understand the full implications of what benefits they may be losing when transferring their Pensions especially Final Salary schemes and what disadvantages that this may bring, ie exit costs for market linked schemes such as Market Value Reductions/Adjustments (MVR/A's) and whether a transfer is right for them, then advice is imperative, (unless that person personally understands these things fully).

Also to be aware is things like you have mentioned, retirement age, as in Australia preservation age is currently 55 but increasing to age 60, whereas in the UK it is currently 50 for some people but increasing to age 55.

There are lots of other factors that need to be taken into account one of the main ones is that the receiving Australian scheme should be QROPS registered to avoid a large UK tax bill on the transfer.

Now this is one of the more obvious ones and many UK Pension companies will not allow a transfer to an Australian Super unless it is QROPS registered.

However following on from this that money is still under obligation to the UK for a further five full tax years on being a non UK tax resident and any breaches of this ie a transfer to another fund or a withdrawal can result in a tax charge by the UK between 40% - 55%.


As said yes the actual administration can be done D.I.Y but making sure that a transfer is right for you and ensuring you understand the full implications of transferring should not be overlooked.

Probably just as important is taking advice when the money arrives as to choosing an appropriate Australian Superannuation fund (there are hundreds) suited to your requirements and advice on where your retirement money is invested ie having an investment portfolio constructed based on your individual needs.

Hope this helps.

Regards

Andy


(Please note that this is general information only and does not constitute advice)

Sunbed

Sorry for hijacking the thread.

I am currently on a temporary spose visa and have been for over twelve months now.

Can anyone tell me if the 6 month period of grace is applicable only to permanent residents or as a temporary resident am I governed by this period as well?

Thanks

MC.

Buzzy--Bee

You are not governed by this period as a temp resident, however should you go on to get PR the 6 months would start from the date you became tax resident in Australia.

Buzzy

Sunbed

Thanks Buzzy.

I'm in the process of working out what to do, so if I decide to transfer it, it will before I become a PR.