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Transfer your UK Pension to Australia with Beyond Square Consulting
At Beyond Square Consulting we’re dedicated to helping you transfer your UK Pension benefits to Australia. With our help and knowledge we assist those that have left the UK on a permanent basis to take maximum advantage of the Australian superannuation system.
Since 2006 UK legislation has made it possible for UK pensions to be transferred abroad provided that a number of conditions are meet. Primarily this requires you to have left the UK on a permanent basis and the receiving pension scheme must be registered with HMRC in the UK as a Qualifying Recognised Overseas Pensions Scheme (QROPS).
Due to changes imposed by the UK Government in 2015 there are now additional considerations to be made when transferring your pension to Australia. For those over the age of 55, with less than $500,000 to transfer, there has been no change and it’s business as usual. For those under 55, and those over 55 with in excess of $500,000, an alternative strategy must be implemented. For those under 55 this can provide an eventual stepping stone to Australia. In the meantime it allows you to transfer your pension from the UK to New Zealand, where you can take control of your investments and obtain ongoing advice in Australia.
For more information, or to start transferring your UK pension today, get in touch and we’ll help you along the path.
Transfer your UK Pension to Australia and enjoy all of the great superannuation benefits in retirement
Beyond Square Consulting was established in 2012 as a stand alone Financial Planning practice offering a range of solutions to clients all over the country.
Over time we identified a lack of advice and assistance available to those from the UK with regards to the transfer of their pension benefits. Due to strict requirements enforced by HMRC with regards to QROPS (Qualifying Recognised Overseas Pensions Scheme) and the ever changing Australian Superannuation regime this area of advice requires a level of specialist knowledge to ensure suitable and appropriate outcomes are achieved.
Our aim is to ensure that our clients have a full understanding of their UK pension, the rules associated with a transfer and the benefits of transferring to an Australian super fund (via New Zealand for those under 55) so that they can make a fully informed decision before deciding whether or not to proceed with a transfer.
Brad has been involved in the Financial Planning industry since 2000. During this time he has held a number of roles covering technical support, compliance and financial advice. He has worked with a broad range of clients, including assisting in the transfer of pensions from the UK.
With regular travel between Australia and the UK Brad is able to keep up to date with changes and challenges on both sides of the transfer process, ensuring a smooth, efficient process for you.
Working With Us
We know that making the time to see an adviser can be difficult, thats why we make it easier for you to do business with us. That way you can get the specialist service that you need all at your own convenience.
For flexibility and convenience we conduct the majority of our meeting via Skype or Phone.
During or After Work Hours
As we conduct our meetings remotely we can meet during your work hours or when your in the comfort of your own home.
We take care of the Paperwork
We take care of all the paperwork and the follow ups until everything is in place.
Which UK Pension Funds can be transferred?
While a number of different pension types are available to transfer, not every pension is available for transfer. The following pensions are available to be transferred to Australia:
- Defined Contribution (DC) Pension Schemes,including company and personal pension anddrawdown arrangements;
- Private Sector Defined Benefit (DB) Schemes; and
- Funded Public Sector DB Schemes.
The following pension types are unavailable for transfer:
- The UK State Pension;
- Annuities purchased with a life insurance company;
- Company Pension already in payment; and
- Unfunded Public Sector Defined Benefit Schemes (such as the NHS).
Why can’t I just leave my UK pension funds in the UK where they are until I can transfer?
If you’re under the age of 55 there might be the temptation to leave your funds in the UK until you’re 55 and eligible to transfer your funds directly to Australia. Such a strategy can have serious long term consequences on the value of your retirement savings, including the following:
- A reduction in the value of any Defined Benefit (DB) Scheme. If interest rates begin to increase in the UK, the value of any Defined Benefit Scheme can actually decrease;
- Uncertainty and cost implications relating to fluctuations in Foreign Exchange (FX) rates. Adverse movements in currency rates can impact not only on the capital value of your existing account, but also any pension payments that might eventually be made;
- If you are not managing your funds it’s possible that they may be invested inappropriately, resulting in outcomes that are not in line with your expectations;
- Unnecessary Administration fees as a result of holding unnecessary multiple funds;
- By retaining your funds in the UK for longer than necessary you may incur unnecessary taxes upon the eventual transfer, or you may be unable to transfer the full benefit due to the lifetime limits imposed on non-concessional contributions.
What happens if I’m under 55, over 65 or have excess funds that I can’t transfer yet?
There are a number of situations whereby at the present moment you can’t directly transfer your UK pension funds to Australia. This could be due to a number of reasons including:
- being under 55,
- having a pension balance in excess of the lifetime non-concessional contribution cap for superannuation, or
- being over age 65 and not meeting the Work Test.
In such cases it’s important that you get advice on these funds and the alternate strategies that may be available to you. In many cases we can overcome these barriers with a strategy that involves parking your funds in a New Zealand based fund until you’re able to finalise the transfer to Australia. Our advice will cover not only where to invest your funds but also how to manage such things as investment and currency risks.
How do you advise me on the transfer of UK Pension fund?
The first step is to get an understanding of your current situation and to have you sign Letters of Authority (LOA’s) for each scheme. These LOA’s allow us to contact your existing funds so that we can get from them the information we require to make an initial assessment of your options.
Based on our assessment, if a pension transfer is recommended we’ll prepare and present Australian advice document known as a Statement of Advice (SOA). This document outlines the pro’s and con’s of a transfer, as well as the costs and risks involved. It will allow you to make a fully informed decision before deciding whether or not to proceed with any transfer.
NB: Where you have a defined benefit scheme valued at over £30,000 you’re required to obtain separate specialist advice on this account prior to any transfer. This advice must be provided by a specialist UK based adviser. We can facilitate this for you on your behalf.
Advantages of Transferring your Pension
There are a number of advantages to transferring your pension to Australia including:
Potential for Tax Free access to your funds from age 60
Reduce or eliminate potential taxes that could be due if you deferred your transfer
Control Of The Fund and how it is invested
Minimise Taxes on your future pension benefits
Manage Currency Risks through exposure to the currency of your choice
Reduce the Complexity of managing your retirement benefits
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