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UK Pensions – Guide Rules from 1 April 2014

UK Pensions – Guide Rules from 1 April 2014

Old May 9th 2014, 6:58 pm
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Default Re: UK Pensions – Guide Rules from 1 April 2014

Hi CHC4me and plent2d,

I wanted to send you both a pm re transfer of NHS pension, but cannot do so as I am new. Are you able to pm me or send me details of how to contact you ?
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Old May 9th 2014, 10:49 pm
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Default Re: UK Pensions – Guide Rules from 1 April 2014

Hi
How do I transfer 10 years of uk pension over to NZ once I arrive? Is it easy to do myself or do I need to pay a transfer agent? Also is there any way of drawing the lump sum early once it is transferred?
Thanks
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Old May 10th 2014, 1:03 am
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Default Re: UK Pensions – Guide Rules from 1 April 2014

Originally Posted by akmodi
Hi CHC4me and plent2d,

I wanted to send you both a pm re transfer of NHS pension, but cannot do so as I am new. Are you able to pm me or send me details of how to contact you ?
It's the weekend here so it may be Monday before someone happens along.

You can see his Linkedin profile HERE

His email is dai.eveleigh@ firstcapital.co.nz

Please note that as a professional and qualified pension transfer specialist he can only give general advice on here .
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Old May 10th 2014, 1:05 am
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Default Re: UK Pensions – Guide Rules from 1 April 2014

Originally Posted by Mrsbrightside7
Hi
How do I transfer 10 years of uk pension over to NZ once I arrive? Is it easy to do myself or do I need to pay a transfer agent? Also is there any way of drawing the lump sum early once it is transferred?
Thanks
That depends on the the rules set by your PP plan beack in the UK. It also depends on the qrops you place the transferred pension into.

Yes I believe some do this themselves via their bank perhaps, however it is such an important decision that it is best to use a pension transfer specialist IMHO.

It is not only what you are transferring but also which qrops bests suits you.

Last edited by BEVS; May 10th 2014 at 11:34 pm.
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Old May 10th 2014, 7:24 am
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Default Re: UK Pensions – Guide Rules from 1 April 2014

Originally Posted by BEVS
That depends on the the rules set by your PP plan beack in the UK. It also depends on the qrops you place the transferred pension into.

Yes I believe some do this themselves via their bank perhaps, however it is such an important decision that it is best to use a pension transfer specialist.

It is not only what you are transferring but also which qrops bests suits you.
Thanks
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Old May 17th 2014, 2:17 am
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Default Re: UK Pensions – Guide Rules from 1 April 2014

Hi chc4me,

After been in NZ for over 6 years, I have decided to transfer my NHS pension to here, but I can't decide whether I should DIY to reduce the cost or use a financial service. I have read on here that somebody has done it by themselves from NHS to AMP which wasn't a bad experience.

I am currently have KiwiSaver with AMP, so just for initial transfer, I could transfer it to AMP then move it to somewhere else? I am aware of the fact that HMRC follows any transfers up to 10 years. However since I have stopped being a UK tax resident since Nov 2008, so I shouldn't be penalised or should I?

I am also aware of the Exchange rate inflexibility on KiwiSavers, but people are arguing that waiting for the rate to recover in a way is a losing interests and investment returns? What's your opinions on that?

Do you think DIY is a good ideal in general?

Regards
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Old May 17th 2014, 10:55 pm
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Default Re: UK Pensions – Guide Rules from 1 April 2014

Hi, I have lived in NZ for 10yrs and have a private pension scheme in the UK that matures when I am 55, it is only 7k GBP (I haven't paid any contributions for years) and I will be 55 this September.

Can I have this as a lump sum? All these changes get me a little confused on what I can do and cant do!

Any advice in plain language would be much appreciated as all the jargon in the letters sent by my provider is gobbledygook to me!

Thanks in advance.

Skin
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Old May 18th 2014, 4:46 am
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Default Re: UK Pensions – Guide Rules from 1 April 2014

Hi to all. I've just got back from a refreshing holiday after a super busy year and ready to answer your pension questions. Many thanks to Bev for her comments in my absence.
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Old May 18th 2014, 5:19 am
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Default Re: UK Pensions – Guide Rules from 1 April 2014

Originally Posted by kanan1
Hi chc4me,

After been in NZ for over 6 years, I have decided to transfer my NHS pension to here, but I can't decide whether I should DIY to reduce the cost or use a financial service. I have read on here that somebody has done it by themselves from NHS to AMP which wasn't a bad experience.

I am currently have KiwiSaver with AMP, so just for initial transfer, I could transfer it to AMP then move it to somewhere else? I am aware of the fact that HMRC follows any transfers up to 10 years. However since I have stopped being a UK tax resident since Nov 2008, so I shouldn't be penalised or should I?

I am also aware of the Exchange rate inflexibility on KiwiSavers, but people are arguing that waiting for the rate to recover in a way is a losing interests and investment returns? What's your opinions on that?

Do you think DIY is a good ideal in general?

Regards
There are many considerations before making a transfer.
DIY or use an adviser?
Hold it in GBP or transfer straight to NZD?
Put it in Kiwisaver or a QROPS?
Access fom age 55 or 65?
Future plans?

Do I think DIY is a good ideal in general? No.
Why? Because a transfer is not just about completing the transfer (and there are a number of issues that can trip up the unwary along the way), it is also about the advice and flexibility that can be obtained with a transfer to a NZ QROPS. As one example, if you transfer in to a Kiwisaver scheme, you will not be able to make a withdrawal until age 65 but it could be extended if the retirement age increases. A transfer to a QROPS will allow withdrawals from the age of 55. That's quite a difference.

Transfer of an NHS Pension.
As this will be a final salary scheme, and if you have made the decison to make the transfer, start immediately! Why? Because the UK Govt have announced changes which could stop the future transfer of such schemes. A transfer of an NHS pension often takes 6 months.

10 year reporting.
You are correct that the receiving scheme must report to HMRC for a period of 10 years. This time frame starts from the day the money is received by the new scheme. Providing you stick to the rules, there will be no penalties.

Exchange rates.
This is a personal decision which might depend on when you plan to use the funds. If it is in the next couple of years, you might decide to make the currency switch immediately. If you plan to retire in 10 years time (or more) then holding and investing in GBP investments, might be more attractive.

Fees.
Talk to your adviser (or ME!!) and discuss your concerns. Depending on what level of service you want, you may be able to negotiate a lower fee.

I hope that helps
Best wishes.
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Old May 18th 2014, 5:40 am
  #25  
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Default Re: UK Pensions – Guide Rules from 1 April 2014

Originally Posted by Skin
Hi, I have lived in NZ for 10yrs and have a private pension scheme in the UK that matures when I am 55, it is only 7k GBP (I haven't paid any contributions for years) and I will be 55 this September.

Can I have this as a lump sum? All these changes get me a little confused on what I can do and cant do!

Any advice in plain language would be much appreciated as all the jargon in the letters sent by my provider is gobbledygook to me!

Thanks in advance.

Skin
Great question! The first step is to take a look at the actual information from your UK scheme as this may provide some additional information. Unfortunately the information is not always easy to understand.

Here is a bit of reading for you ... http://www.hmrc.gov.uk/pensionschemes/small-pen.htm

With the info in this link, from the age of 60 you will be able to withdraw the full amount. However keep in mind that you will have to pay tax on any withdrawals to the NZ IRD. Also keep in mind that rules change and by the time you reach 60, changes may have been made restricting withdrawals (I know, this makes it very hard to plan future actions!!)
Regards
Chc4me
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Old May 18th 2014, 6:47 am
  #26  
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Default Re: UK Pensions – Guide Rules from 1 April 2014

Originally Posted by chc4me
Great question! The first step is to take a look at the actual information from your UK scheme as this may provide some additional information. Unfortunately the information is not always easy to understand.

Here is a bit of reading for you ... http://www.hmrc.gov.uk/pensionschemes/small-pen.htm

With the info in this link, from the age of 60 you will be able to withdraw the full amount. However keep in mind that you will have to pay tax on any withdrawals to the NZ IRD. Also keep in mind that rules change and by the time you reach 60, changes may have been made restricting withdrawals (I know, this makes it very hard to plan future actions!!)
Regards
Chc4me
Thanks chc4me

All these changes seem geared to make it harder and harder to get your own money!

I will read up and hopefully understand some of the lingo.

Cheers Mate
Les
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Old May 18th 2014, 7:56 am
  #27  
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Default Re: UK Pensions – Guide Rules from 1 April 2014

Originally Posted by chc4me
There are many considerations before making a transfer.
DIY or use an adviser?
Hold it in GBP or transfer straight to NZD?
Put it in Kiwisaver or a QROPS?
Access fom age 55 or 65?
Future plans?

Do I think DIY is a good ideal in general? No.
Why? Because a transfer is not just about completing the transfer (and there are a number of issues that can trip up the unwary along the way), it is also about the advice and flexibility that can be obtained with a transfer to a NZ QROPS. As one example, if you transfer in to a Kiwisaver scheme, you will not be able to make a withdrawal until age 65 but it could be extended if the retirement age increases. A transfer to a QROPS will allow withdrawals from the age of 55. That's quite a difference.

Transfer of an NHS Pension.
As this will be a final salary scheme, and if you have made the decison to make the transfer, start immediately! Why? Because the UK Govt have announced changes which could stop the future transfer of such schemes. A transfer of an NHS pension often takes 6 months.

10 year reporting.
You are correct that the receiving scheme must report to HMRC for a period of 10 years. This time frame starts from the day the money is received by the new scheme. Providing you stick to the rules, there will be no penalties.

Exchange rates.
This is a personal decision which might depend on when you plan to use the funds. If it is in the next couple of years, you might decide to make the currency switch immediately. If you plan to retire in 10 years time (or more) then holding and investing in GBP investments, might be more attractive.

Fees.
Talk to your adviser (or ME!!) and discuss your concerns. Depending on what level of service you want, you may be able to negotiate a lower fee.

I hope that helps
Best wishes.
Thanks for your reply chc4me,

How do I contact you directly? Also I'm Auckland based, would that be problem as you are in CHCH?

Cheers
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Old May 18th 2014, 11:06 pm
  #28  
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Default Re: UK Pensions – Guide Rules from 1 April 2014

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Old May 22nd 2014, 10:11 am
  #29  
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Default Re: UK Pensions – Guide Rules from 1 April 2014

Hi Dai, very informative thread. Thanks.
I had a question was regarding my pension - I have two small pensions that have a combined value of less than £18 K. My understanding is that I can withdraw these pensions as a tax free lump sum (in the UK) as they are of trivial amount? Is this correct? Seems too easy...
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Old May 26th 2014, 11:21 pm
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Default Re: UK Pensions – Guide Rules from 1 April 2014

Originally Posted by Skin
Thanks chc4me

All these changes seem geared to make it harder and harder to get your own money!

I will read up and hopefully understand some of the lingo.

Cheers Mate
Les
Hi chc4me

I was considering moving my pensions to Kiwisaver! in your opinion would this be advisable?

Thanks for your help.

Skin
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