jmh

There are superannuation investment funds which are not kiwisaver that you or your employer can pay into. Not sure if you can cash out though. Obviously you'll need to check on that as well as eligibility. I suggest you google the underlined and see what you get.

chc4me

For transfers before April 2012, that was (and is) an option and is commonly referred to as 'the old rules'. So yes you are correct. However for all transfers after that date, the rules are more restrictive and requires intimate knowledge of the rules.

KiwiAnt

Hi chc4me

I have been looking for some advice around transferring my NHS pension from the UK to NZ and found your posts on this forum. I registered especially so I could contact you of further advice but as a newbie can't send you a PM to make contact! Could you please PM me as I am keen to get some advice before the April tax change :-)

Cheers

chc4me

Thanks Kiwi Ant, Personal Message sent to you.

julesnye

Thats a great answer and made it so clear as to what these new rules mean.
many thanks chc4me

BEVS

Hi guys.

KiwiAnt will be able to see your PM via the email address they registered with.

Other way is to send a BE email. GO to the profile and use that option.

KiwiAnt. You may think to contact chc4me direct via a business email.

However, I do hope you stick around this little NZ forum and join in.

Boopy

We're just looking at transfer of UK pensions to NZ. However the hubby is very reluctant to do anything with his (MPS) Mineworkers Pension. Any advise or thoughts on this would be appreciated.

chc4me

Hi Boopy,
Transferring pension savings is not always the right action, sometimes the retirement benefits are very valuable and are well worth continuing with those benefits. On the other hand, there are advantages of making a transfer to a NZ scheme. I always suggest finding out the advantages and disadvantages or any action (or inaction) so that you make an informed decision.

manni72

Your posts are really informative chc4me thank you for taking the time to post. I'd be really grateful if you can help me understand what's what from the contradictory advice I've been given from two advisors, one in UK other in NZ

I have a UK final salary teacher pension which I can draw down from age 55 as lump sum and annuity. I'm 42 and I've been living in NZ for one year.

My UK pension advisor says I should leave this pension in the UK unless I am terminally ill, in which case under the policy guidelines I could withdraw it then. My NZ advisor has told me to transfer it to NZ ASAP into QROPS and absolutely before March this year. It was from reading your posts that I realised I had up to 4 years to decide (if I read correctly?) and that I didn't have to meet the March 2014 deadline.

I'm a higher tax payer in whichever country I live - NZ or UK if that's relevant? My UK pension remains open for top up as a final salary pension for the next 4 years. So if I were to go back to UK to work in that time I would automatically contribute back into this pension pot (unlikely but not impossible) and I have a kiwi saver here. I really have no idea what to do - my gut instinct is to leave the index linked final salary pension in the UK because those benefits are worth more than tax savings later down the line?? I have a UK bank account won't the UK pension just be paid directly into that when I retire?
Very confused! Thank you for any advice

chc4me

Thank, you, very kind of you to say.
Get a better NZ adviser. Sounds to me like your NZ adviser is 'scare mongering' and is either not aware of the facts or is out to make a quick buck. New migrants have 4 years from arrival in NZ to complete a transfer, the 31 March deadline is relevant for those that have been in NZ for longer periods.

When considering a pension transfer it's important to consider the rules and regulations in both countries and it is often difficult finding advisers who have an such knowledge.

Not particularly, but thanks for sharing!

You have hit on one of the main reasons why a Final Salary scheme is highly prized. A final salary scheme often includes index linking and a guaranteed income payable for the rest of life. On the other hand, the transfer figure will reflect the large liability that the pension company owes to you and many folk are surprised by the transfer figure. There are many factors to consider, tax is just one of them.

If you decide to keep the pension fund in the UK as it is, then at retirement the pension income will be paid to your nominated bank account. That could be in the UK, yes. Any income, or lump sum payment would be taxable in New Zealand at your marginal rate, assuming you continued to live in NZ at that time. Many people think that because it is paid in the UK, into a UK bank account that it is taxed in the UK. This is incorrect. If you live in NZ, you pay tax on your worldwide income in NZ. We have an double tax agreement with the UK so that you only pay tax once, so no real issue.

Just one important point, transfers from Teachers Pensions, NHS, and most Govt agencies can take 3 to 6 months. If you do decide to make a transfer before the end of your 4 year exemption, allow enough time for completion.

Hope that helps. And welcome to NZ.

BEVS

chc4me.

Have you a link that would better show your business email and website please?

dianneteacher

Hi,

my husband and I both were teachers in the UK and moved here in Sept 2006. We have just recently heard about the new tax laws relating to overseas pensions and a Britannia representative scared us by telling us of his tax bill of $7000! We are unsure whether to start the transfer or leave both of our pensions in the uk. We have a kiwi saver here ad are not sure if our teachers pensions are worth much as we only worked for 12 years and I had 3 maternity leaves in that time. We feel that doing something now is a bit of a knee jerk reaction but would like any advice that is going. Thanks

chc4me

Hi Dianneteacher, Thanks for posting. I'm surprised anyone can tell you that you have a tax bill without knowing what the value of the pension is.... something sounds fishy to me.
As with any financial matter, gather all of the information and then make an informed decision.
Best wishes.

Boopy

Thank you chc4me. I now have a better understanding from your posts to others here, so thank you again.
Basically, you would only pay tax on your pensions once either in UK or NZ, regardless of when or how many years down the line?? Is that right?

chc4me

If you live in NZ, and therefore you are a NZ tax Resident, you pay tax in New Zealand.

If you remain living in NZ and your husband keeps his fund in the UK, then he retires and receives benefits from his pension fund, tax will be payable in NZ on each amount for as long as those payments continue.

If your husband transfers his pension to NZ, a one time tax will be payable on the amount transferred but when it comes time to receive benefits from the NZ Pension fund, then no further tax is payable.

You either pay tax in the future on all payments made out of the pension OR you pay a one time tax on the transfer of the pension to a NZ scheme. As previously stated, tax is only one reason. There are advantages and disadvantages.

Hope that helps.