Forces (Navy etc) Pensions
#1
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Forces (Navy etc) Pensions
Is there anyone getting a pension from the forces eg Royal Navy while resident in NZ. What are the tax implications etc? My husband is about to retire with a pension and needs to make a decision but nowhere seems to tell you what happens if you move to NZ. Should he take as much as he can as a lump sum and get less monthly in NZ. We'll be permanent residents. ANy advice from former military people on this would be really helpful.
#2
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Re: Forces (Navy etc) Pensions
Originally Posted by Billie
Is there anyone getting a pension from the forces eg Royal Navy while resident in NZ. What are the tax implications etc? My husband is about to retire with a pension and needs to make a decision but nowhere seems to tell you what happens if you move to NZ. Should he take as much as he can as a lump sum and get less monthly in NZ. We'll be permanent residents. ANy advice from former military people on this would be really helpful.
We are in a similar situation, only my husband has been out of the army for a couple of years now, we have spoken to the people at HIFX who have said that they we can set up a monthly direct debit to them then they will forward on to us. The good thing about this seems to be that we will sign a contract with them for 12 months or 24 months, at a set interest rate, so even if the dollar fluctuates we will know what we will get each month, we havn't decided for sure yet, but have been impressed with HIFX throughout and they seem to have a pretty good reputation. We are waiting for them to get back to us re any tax once the funds reach NZ, he wasnt sure on that one, will chase them again this week. For info when my husband came out he commuted as much as he could, but still gets hammered on the rest in tax.
Hope this helps
Traceyx
#3
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Re: Forces (Navy etc) Pensions
Originally Posted by westies
Hi there
We are in a similar situation, only my husband has been out of the army for a couple of years now, we have spoken to the people at HIFX who have said that they we can set up a monthly direct debit to them then they will forward on to us. The good thing about this seems to be that we will sign a contract with them for 12 months or 24 months, at a set interest rate, so even if the dollar fluctuates we will know what we will get each month, we havn't decided for sure yet, but have been impressed with HIFX throughout and they seem to have a pretty good reputation. We are waiting for them to get back to us re any tax once the funds reach NZ, he wasnt sure on that one, will chase them again this week. For info when my husband came out he commuted as much as he could, but still gets hammered on the rest in tax.
Hope this helps
Traceyx
We are in a similar situation, only my husband has been out of the army for a couple of years now, we have spoken to the people at HIFX who have said that they we can set up a monthly direct debit to them then they will forward on to us. The good thing about this seems to be that we will sign a contract with them for 12 months or 24 months, at a set interest rate, so even if the dollar fluctuates we will know what we will get each month, we havn't decided for sure yet, but have been impressed with HIFX throughout and they seem to have a pretty good reputation. We are waiting for them to get back to us re any tax once the funds reach NZ, he wasnt sure on that one, will chase them again this week. For info when my husband came out he commuted as much as he could, but still gets hammered on the rest in tax.
Hope this helps
Traceyx
You'll pay tax on worldwide income in NZ but won't pay twice!! All very confusing...Hubby will have to write to Forces Pensions and clear up unanswered questions but helpful to see what others have done. Would your advice be to commute as much as possible?? Thanks.
#4
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Re: Forces (Navy etc) Pensions
I'd commute as much as possible - the high interest rates in NZ make commutation even more attractive than normal. Also, the commuted lump sum is non-taxable, whereas ongoing income is taxable - and is likely to be at 39% if you have a decent NZ income. You may wish to leave the lump sum in the UK until the exchange rate sorts itself out though, if you can afford to.
Not sure about the non-index linking; as you say, this is the case with state pension but I could find no reference to it in the Forces pension regulations - here's hoping.
Not sure about the non-index linking; as you say, this is the case with state pension but I could find no reference to it in the Forces pension regulations - here's hoping.
#5
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Re: Forces (Navy etc) Pensions
Originally Posted by lapsed kiwi
I'd commute as much as possible - the high interest rates in NZ make commutation even more attractive than normal. Also, the commuted lump sum is non-taxable, whereas ongoing income is taxable - and is likely to be at 39% if you have a decent NZ income. You may wish to leave the lump sum in the UK until the exchange rate sorts itself out though, if you can afford to.
Not sure about the non-index linking; as you say, this is the case with state pension but I could find no reference to it in the Forces pension regulations - here's hoping.
Not sure about the non-index linking; as you say, this is the case with state pension but I could find no reference to it in the Forces pension regulations - here's hoping.
#6
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Re: Forces (Navy etc) Pensions
Originally Posted by Billie
Yes- I can't find much at all about pension and retiring overseas. I'll let you know about the non-index linking at 55- I can't see it is the case but best to know before you get a very expensive shock!!
I enquired a couple of years ago when we where going to go to NZ. It seemed straight forwards enough. I do not think things would have changed much in the last 2 years.
PS Ex-WAFU :scared:
#7
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Re: Forces (Navy etc) Pensions
Originally Posted by Jack Daws
It would be index linked at 55 not before. Commute as much as possible. You can get a leaflet from the Vetrans Agency (formerly War Pensions Agency).
I enquired a couple of years ago when we where going to go to NZ. It seemed straight forwards enough. I do not think things would have changed much in the last 2 years.
PS Ex-WAFU :scared:
I enquired a couple of years ago when we where going to go to NZ. It seemed straight forwards enough. I do not think things would have changed much in the last 2 years.
PS Ex-WAFU :scared:
#8
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Re: Forces (Navy etc) Pensions
Originally Posted by westies
Hi there
We are in a similar situation, only my husband has been out of the army for a couple of years now, we have spoken to the people at HIFX who have said that they we can set up a monthly direct debit to them then they will forward on to us. The good thing about this seems to be that we will sign a contract with them for 12 months or 24 months, at a set interest rate, so even if the dollar fluctuates we will know what we will get each month, we havn't decided for sure yet, but have been impressed with HIFX throughout and they seem to have a pretty good reputation. We are waiting for them to get back to us re any tax once the funds reach NZ, he wasnt sure on that one, will chase them again this week. For info when my husband came out he commuted as much as he could, but still gets hammered on the rest in tax.
Hope this helps
Traceyx
We are in a similar situation, only my husband has been out of the army for a couple of years now, we have spoken to the people at HIFX who have said that they we can set up a monthly direct debit to them then they will forward on to us. The good thing about this seems to be that we will sign a contract with them for 12 months or 24 months, at a set interest rate, so even if the dollar fluctuates we will know what we will get each month, we havn't decided for sure yet, but have been impressed with HIFX throughout and they seem to have a pretty good reputation. We are waiting for them to get back to us re any tax once the funds reach NZ, he wasnt sure on that one, will chase them again this week. For info when my husband came out he commuted as much as he could, but still gets hammered on the rest in tax.
Hope this helps
Traceyx