BEVS

I know this has been done to death really but does anyone have any experience or recommendations for moving over a small personal pension plan from the UK to NZ.
I've been dithering around about this for ages ( years) now.

Really, I want to get my grubby mitts on this little bit of money but aside from this I feel it is about time we both tidied up our pension affairs. We've bits and bobs of plans back in the UK doing nowt... except perhaps my husbands' ten years of NHS final salary scheme.

alanmacc

Hi Bevs

I am in the process of moving mine across from the UK I am using Rothbury Risk and Investment Services Ltd

www.rothburyrisk.co.nz

They charge a small fee for bringing it over but not too bad, the only sticky point from the UK is the access you can have to it, if you have been out the UK for 5 full tax years you can have access for up to 40% of the transfer value assuming it is above $50k, which can be quite handy to say the least !!!!

Hope this helps

Alan

Matewx

Hey Alan,

Thanks for your in dept info...

Re the 5yrs thingy, if you've been out of the UK for less than 5yrs how much you have access to? This confuses me big time...

I have a pension in the UK, opened 5/6 yrs ago. Being French & not knowing where I'll be when retirying so thought I'll leave in Uk till later...

Now am thinking, should I move it all to France?

Very good thread BEVS & sorry for adding my own questions... Dont mind sharing with me now, do ya?

alanmacc

Well to be a real downer if you want to access the 40% of the value the good old HRMC will take a nice slice of 70% tax !!! yes really 70% tax !!!!

I cant see how they make money in the tax office........ hahaha

BEVS

NNoo. You are very welcome. The more the merrier. I might actually be able to settle on what to do and with whom.

What I don't want with mine is to have some of this small fund locked in until I'm blummin' 65 or summat. Life is way too short .

alanmacc

Hi

Yep see the mail I got re the pension I am transferring
"Yes, we can set it up so that you can access 40%. Please note that to avoid penalties, it must be five complete UK tax years from when you left the UK,(A UK tax year runs from 6th April to 5th April the following year), so it may take longer than 5 years from when you arrived here.

If you think you are definitely going to access the 40% after 5 years, please let me know, as this will have a bearing on where we invest that portion of funds for you.

The remainder cannot be accessed until age 55 (or 5 full UK tax years from when you left the UK), whichever is the later."

Hope this helps

Am Loolah

I have also been in discussions with Rothbury. Another critical element to factor in is the exchange rate - which at the current level may not be the best time to bring it over.

MnB

Hi Bevs, not sure if this is of interest to you, or you are already aware but if OH 'left NHS scheme with preserved benefits on or after 31.3.2000 and is aged 50 or over he could claim his benefits early provided no longer in NHS employment'
...may be worth asking for an estimate of benefits www.nhspa.gov.uk.

I 'wanted to get my grubby mitts' on the benefits while I could still enjoy it!! so have claimed mine early.......paid for last NZ visit!! plus means that can work part time now

HTH
B x

alanmacc

Yep the exchange rate is a tad iffy at the moment at best but I think its a bit of how long do you wait to do it? The rates seem to have been sitting around the 0.38 for best part of two years now and I dont see them changing any time soon.

When we first came over we did loose $000's with a poor exchange rate but had we not came over and sold the house when we did the recession would have caught us and a good possibility we would not even be here, I know its all a matter of timing but the time it takes for the funds to actually be released from the UK is months rather than weeks, so unless you can take forward cover and lock in the rate I think it is always going to be a hit and miss

BEVS

It'll be 5 complete NZ tax years for me next March 2010 as I'll have been here 5 years in total at the end of this month.. As for the 55 age thing, well I turn 21 yet again in less than a weeks time.

Wooly_Cow

Sorry but this is NOT true. The exchange rate has fluctuated from over 3 (briefly) to under 2.4 in the last 12 months alone. That is a varriation of nearly 25% on todays rate - or put another way 10 years of pension contributions (if you had 40 years in)....I wouldn't want to throw that away.

Add to that that the NZ Gov. has said they feel the $ is currnetly between 5-10% over valued (although the so and so's don't feel they need to lower interest rates any more - no they are just going to sit on their hands and let a strong dollar undermine a quicker recovery - typical).

The average rate over the last 2 years is 2.68 and we a long way from that at the moment.

......of course for me this is all a mute point as my pension is locked in UK Govenrment PPP and I can't transfer it for up to two years.....if I get to the 4 year mark I wonder if thats a valid excuse for the NZ tax people ?