There are lots of advantages and considerations in transferring a UK pension to a NZ QROPS
While there are many benefits to transferring a pension to a NZ QROPS the decision for every person that transfers or does not transfer their UK pension is different. Transferring a pension is a complex decision with many pitfalls like: not realising that a tax obligation can be created on transfer which needs to be paid independently; an unwavering belief that a UK defined benefit pension scheme should never be transferred; or, people thinking that NZ QROPS are a one size fits all solution.
We have worked with thousands of British expats or Kiwi’s that have returned home to help them decide whether a transfer is a good option for them, and then if it is help them transfer their pensions to New Zealand. However, we have equally provided advice to people to leave their pension in the United Kingdom, such as where they could not afford the tax bill on a pension transfer, or their UK pension had valuable benefits that would be given up on transfer.
A lot of decisions boil down to the tax effect of transferring a pension, what your future plans might look like, and what the best New Zealand QROPS structure is for each client. Everything else can usually be sorted easily.
NZ free phone: 0800 102 599
OZ Free Phone: 1800 857 410
Auckland: 09 378 1666
Wellington: 04 212 4970
Advantages of a transfer
Many returning New Zealanders and British expatriates transfer their UK pensions to New Zealand wanting to get the funds closer to home, protect themselves from any nasty future legislative changes and reduce their tax liability…read more
Types of NZ QROPS
There are many New Zealand QROPS and it is not a case of one size fits all. Schemes run from self-administered schemes offering ultimate investment flexibility, through to schemes offering life-stage investment offerings. Each type of scheme have different characteristics and it is important that you choose the scheme that best meets your needs…read more
Tax on pension transfers
The introduction of a simplified tax regime for pension transfers in April 2014 means that only when a pension is transferred does tax need to be calculated. There are two methods for assessing tax and you can select the option that gives you the lowest bill. As part of our free assessment we review your tax position on transfer…read more on the transfer taxes
Tax after a transfer
Investors are now more conscious of their post-tax investment returns, especially when recent financial market performance is considered. An investor transferring a pension from the United Kingdom (or indeed someone with an existing New Zealand superannuation scheme that is moving overseas) has a number of factors to consider in determining what after tax performance will be…read more
Breaking the road blocks
Over the last 16 years of transferring pensions we see some consistent objections around transferring a pension to a New Zealand QROPS. More often than not once we have explained the situation to our client they have realised that their objections are less relevant when considering a pension transfer to New Zealand. Here we explore some of the common objections and their relevance in a pension transfer decision…read more