geordielasstoo

What's anyone experiences with this as we are looking into this now?

alanmacc

Yep I brought mine over but I was lucky enough to bring it over at a decent rate, you may be able to bring it over and leave it in an off shore GBP account and then transfer it once the rate improves

There have been a few threads on this

http://britishexpats.com/forum/showt...ght=uk+pension

Genesis

Alas if it is under $20k it gets changed immediately..like some of ours. Over $20k it can rest in a sterling acct..alas no interest until you decide to change it. Kate has had a big lump sitting there for months now just being eroded away with inflation!! 49% you can have now (so long as you are 5 FULL tax years out of the UK) the other 51 % you get when you are 60. You only pay tax on any interest from the pension capital..not the capital itself.

Clappy

Can anyone let me know where this only withdraw 50% of the money rule comes from?

I have looked all through the QROPS rules and have not found it there. I understand the five complete tax years rule but not this 50% withdrawal one.

Genesis

That is what I was told by my QROPs specialist (who works for the transfer co). I doubt he is making it up. If he is (or has) he will really be in the shit!!! They are not allowed to talk bollocks..unlike all the wonderful Finance cos who were allowed carte blanche to bullshit.

alanmacc

Hi

It is not 50% its only 40% (or was when i brought mine over), you split it into two accounts one locked one unlocked, you cant access the unlocked one for 5 full tax years after leaving the UK though

Clappy

Financial Advisers here did not have to be qualified or registered until very recently (July this year. Its like England was thirty years ago, don't get me started ...) My impression (from the media) is that many of them just gave up rather than get qualified so I would be very suspect about any advice.

Thanks - but where is this rule written down?

Genesis

I have checked with my company I am using, apparently each company has different rules regarding how much cash you can have access to immediately. However each QROPS fund MUST assist with RETIREMENT funds..ie you will not find many that will give you all the cash up front.

It is not actually a QROP rule per se but a rule goverened by the company/scheme you use. I am quite happy to have to money squirrelled away I would probably only lose it and it ensures I cannot spend in the next 7 years on chocolate and beer. We got charged 3.5%..that is a bit of a steep fee you can get it for around 2.5%. I was not overly bothered as I did not think our pensions would have a particularly large value..fortunately I was wrong there! So whilst we have been gouged a wee bit comission wise the amounts we are getting are significantly bigger than we expected.

alanmacc

Hi

I found this one on another site

How do QROPS schemes work?
You can transfer your UK pension funds into a QROPS scheme in NZ without incurring any tax charges. Furthermore, up to 40% of any money you transfer into a QROPS scheme in NZ may go into an unlocked fund. You can withdraw from this unlocked fund at any time before retirement age, however, you may face a tax liability for this early withdrawal if you make it within five full tax years of leaving the UK. After that you may withdraw from the unlocked portion of your fund. Please note that some UK pensions allow you to take up to 25% of your funds from age 55 even if you are within five full tax years of leaving the UK.

http://www.ukpension.co.nz/nzfaq.php

chc4me

Genesis is absolutely correct. Each NZ scheme has their own rules about the amount that can be withdrawn, subject to age and when you were last a UK tax resident.

Each scheme also has it's own rules regarding investments. Many ex-pats focus purely on the transfer and almost ignore the investment side of the transaction. Some schemes will allow the transfer to be held in GBP cash, some will allow GBP plus UK Investments to earn returns. Some are like a Self Invested Personal Pension (SIPP), and others are bundled together with the scheme manager making investment decisions on your behalf.

A checklist for UK Pensions;
Transfer
What is the cost? (Should be under 2.5% - ask for a lower charge)
Do you provide an illustration of retirement benefits?
Who arranges the transfer, chases the company and makes sure the transfer runs smoothly?
Do you prepare a Transfer report in writing with advantages and disadvantages of transferring?
What reasons should i keep my pension in the UK?
What are the withdrawal terms, are there any penalties?

Investments
When the transfer is completed, is the money held in Pounds?
How is the exchange rate managed?
Are the investments managed funds or direct shares?
What costs are involved? (Both adviser fees, and managed fund fees)
How often are the investments reviewed?
If you are my adviser, how often do we meet or correspond?
Can I select my own investments?
Is an investment strategy provided to me in writing?
Can I transfer to another provider if I am not happy with your service?


I'm sure there are more that can be added, but hope that helps for now.