Jan9

Has anyone done this recently? I heard the rules were changing this year but not sure how that might affect me, it would be good to bring it across so that all my paperwork is here and can start to contribute into it again. Not sure how to go about it or if I need a financial adviser. If anyone has any experience or contacts it would be apprecaited.

Cheers
Jan

sparkie down under

I'm in something of a similar situation, or rather racing towards it

There was a previous thread on this and some excellent answers, and an advisor posting as well. Hopefully they'll be reading this and come to your aid

minky

If you go onto move2newzealand website there is an article http://www.mov****.com/member/showAr...28&sm=g1000p11

Hopes this helps

Karen

Jan9

Thanks Karen - I will check that out!

BEVS

That thread is HERE. Hopefully Chc4me will be along to help

Jeremy Henderson of Broadbase is also a quality advisor. He's helped several from this board & has a very good rep.

I believe that both of these advisors have also helped out on the Mov**** board in the past.

chc4me

Hi Jan, Sorry a bit late in replying, but hopefully the answer is worth the wait!

New Rules:
Yes new rules were implemented on the 6 April 2012. The new rules are slightly less flexible than the old rules but still better than many other parts of the world. The main changes are:
1) No withdrawals before age 55.
Previously, it was possible to withdraw some (and sometimes all) of your money. Now it's age 55 as a minimum.

2) Reporting of all withdrawals for 10 years from the date of the transfer.
This means the NZ scheme that you transfer your pension to must report all withdrawals for 10 years, reporting is to the authorities in the UK (HMRC). Therefore if you withdraw any funds before you are entitled to them, HMRC may know and could hit you with a large penalty (up to 55%).

3) Once you reach age 55, the maximum tax free cash is 30% and the remaining 70% is to be used as an income for life.
Actually the 30% is calculated as 30% of the amount that was transferred. You can also withdraw any growth that has occured so you might be able to withdraw more than 30%, if you see what I mean. The 70% income for life is NOT an annuity. New Zealand does not have an active annuity market. Therefore the method of calculating the income for life will be decided by each scheme. Some are suggesting a fixed percentage for a fixed number of years (e.g 10% for 10 years). This is quite likely to be far better than the rates offered in the UK, subject to not being a UK tax payer in any of the last 5 UK tax years.

Right, so the question everyone is asking is, "when can I take all my money out?" Even though this is retirement money and should be used for that purpose, the NZ Govt believes that NZ'ers can be responsible for their own money. So, with this in mind, it is possible to withdraw the full amount and use the money as you wish including investing it, spending it, tucking it under the mattress, buying a whole country (Greece is going cheap!).

To do so you must meet the following tests:
a. Over the age of 55
b. Have not been a UK tax payer in any of the last 5 UK tax years
c. The NZ scheme must agee. *Some schemes may restrict withdrawals until the funds have been invested for 10 years (see reporting requirements above).

Schemes:
You could transfer your UK Pension to a QROPS or to a Kiwisaver Scheme. Before doing so, make sure you understand the differences including when can you access some or all the capital (Kiwisaver is age 65 and could increase), the investment options, is there any control over the currency, potential returns, fees, and will the fund be personally managed or just part of one big fund.

Adviser:
Can you do it yourself? Sure, why not. It's not rocket science, just read all the meterial and make your own decisions. On the other hand the assistance of an experianced, qualified adviser might make a huge difference in the amount you receive, the time that it takes to transfer and might avoid some costly mistakes. If you are using an adviser, make sure they are qualified (Authorised Financial Adviser), ask what experiance they have in UK Pensions, are the funds received in GBP and can you switch to NZ currency when you are ready. Also ask how you can take advantage of the 4 year tax free migrant exemption - if they don't know this one keep looking for an adviser.

Contributions:
There might be some good reasons for you not to contribute to the pension fund any further (restrictions imposed by the authorities would be at the top of my list). Also there might be better methods of saving, such as Kiwisaver. Best to talk to your adviser about the options.

One last point, you can leave your pension funds in the UK, and some schemes are better left in the UK. Just make sure you understand the type of scheme you have and the tax implications of leaving it in the UK (you need to declare it to the NZ tax department and pay tax on it.)

Happy to answer questions.

For disclosure sake, I am an adviser. The information provided above is for information only and is not a recommendation of any kind. As with all rules, there will be exceptions subject to personal circumstances.

Jan9

That is fantastic feedback and really comprehensive - thanks so much, I will digest it all and come back with any questions should I have them! Thanks

alanmacc

Hi
Sorry to jump on board on the thread, buuut..... I have already brought my pension over into a QROPS with 40% unlocked to theoretically I can access this after 5 full tax years, or at least I could at the time ov transerring the funds.

Does this still apply to me? was hoping to access this next year??

Ta in advance

sparkie down under

Thanks CHC4me,
an interesting post. But for some reason I really do cloud over once the topic of pensions is raised; and I know I shouldn't. It's like when we did French in school. I used to think to myself, what's the point in this, I'm in Wales and I'm never going to France. 2 years later I was riding all over France

If you can make it a bit more - well - less dull CHC4me, now that would help

chc4me

To alanmacc,
The new rules generally only apply to new transfers after the 6th of April. Therefore as you transferred before that date, there should be no change but I would suggest you write to your provider and ask for confirmation that you can still withdraw at the time intended.

chc4me

To sparkie down under,
I know what you mean, my eyes glaze over when I'm looking at electrical wiring diagrams. Just remember both will shock you if you get it wrong!!

sparkie down under

Ian and Gill

Great feedback, CHC4ME: I'll just have to digest it, now.
Are we talking about Private or State pensions, or both, here?
Can you continue to pay money into the UK State pension?
Is that worthwhile?
We've been here two years, now, and I know I really ought to get my affairs in order!!!!!!!
Thanks for you input.

chc4me

Hi Ian & Gill, the thread is about Private pensions only. For State Pension information read this LINK.

Ian and Gill

Cheers.
Ian.