tonz76

Hi well Im 34 about to emigrate to New Zealand and not sure what to do about a pension plan. I have been paying into a pension scheme in the uk since I was 21. The first 9 years with one company pension plan then the last 3 with another. The first was a final salary the second pension scheme was an average. I have not been paying into a plan for the last 6months as I had to quit my job last october so I could travel out to NZ and gain employment. Which luckily I did However its a small family run business so I would be looking at a private pension plan. Just wondered if there was anyone who could give me some advise

Genesis

At the moment in NZ (after you have been out of the UK for 5 FULL tax years) you can join a QROPs scheme and move the monies over here. You get 50% of it immediately and the other half you get when you turn 60. In the meantime the half the QROPs provider who moved it over for you will invest it in either low, med. or hi risk for you (your choice). All the money comes to NZ tax free and you only pay tax on any interest or profit you make from the subsequent investment of said monies. You will be charged a flat fee for the monies to be landed here, normally around 3%ish and on the managed fund until you turn 60 there is a small management fee deducted each year.

bigjohnny7

I'm in more or less the same boat, tonz76. I moved out here 3 years ago, after paying into a pension plan in the UK for 7 or so years.

I figure that the money's sat in the UK, and it's better over there in a stronger economy anyway until I can transfer it. And anyway, it's probably best to transfer it if the exhange rate ever returns to 1:3 as it always used to be, rather than close to 1:2 as it is now.

Genesis

Doubt very much if the 3-1 will ever return mate. The median 5 years ago over a decade was 2.7. That too is unlikely to ever return. I am surprised you think the Uk has a stronger economy, the BBC has just mooted that inflation is up to about 4.5%, confidence is very low and growth is not looking good. The 2.25 seen a couple of weeks ago was quite good. I guess there is a chance we may see 2.40 ish when UK interest rates go up. I think that will be as good as it gets..and that is unlikely I must say. You cannot get hold of any monies until you have been out of the Uk for a full 5 tax years, however I think you can apply to move the money over here before that time and then get access to the 50% after the full 5 years out of the UK. Remember if you leave it in the Uk when you do finally get paid your pension you will have to pay FULL Nz tax on it at what ever your rate is at that juncture. If you bring it over here the lump sum arrives tax free and only interest and profits from the lump sum are taxed. The QROPs scheme may be gotten rid of soon so I have heard. Just google 'qrops Nz providers' for more info.

alanmacc

I am in sort of the same boat as everybody else, been here 4 years this year but I have already moved mine across but luckily I did it when the rate was a little better than it is now, so only about a year and a bit to go before i can access my 50% not that Im counting .....hahaha

I did consider holding off and waiting till the rate improved but I suppose you need to weigh up al the ifs and buts however I dont ever see it reachng the giddy heights of 2.7:1 again .......