Also consider the following
Do I require advice on whether I should transfer or do I just need help to do so?
If you have already decided that you want to move your UK pension funds to New Zealand then we can help you to do so and will ensure that the process is made simple for you. Visit the How to Transfer section for more detail and to start the process
If you want advice on whether a NZ Superannuation Scheme or a UK pension will best help you to achieve your goals then we can also help. Contact us for a personalized report
Are UK final salary scheme guarantees important to me?
If you have a UK Final Salary pension scheme and the guarantees they provide are important to you then you should seek advice before transferring
Death benefits offered
For many individuals this is the most important factor in a pension scheme as they want to know that their family are well looked after if they died. A NZ pension scheme pays the full value of your fund as a tax free lump sum to you beneficiaries so you can ensure your spouse/partner and children fully benefit. This is not always the case with UK pension schemes so a careful comparison should be considered.
Am I comparing apples with apples?
You may be aware of the benefits that your UK pension scheme offers you but be totally unaware of what a NZ pension scheme can provide. It is important when considering whether you wish to transfer or not to ensure that you compare your UK scheme to a New Zealand pension scheme and not to another UK pension scheme. The right NZ scheme offers a level of flexibility and control unheard of in UK pensions and it is important that you therefore compare apples with apples.
I may want to retire early
Many UK pension schemes apply early retirement penalties. One of the best UK schemes is that of the NHS, yet if you wanted to retire five years early, after suffering the early retirement penalties charged by that scheme and after paying NZ tax if you took the benefits while the scheme was still in the UK, you would lose almost 50% of your income. This does not happen in a good NZ Superannuation Scheme.
I want to maximize my retirement income
If you leave your UK pension scheme in the UK and draw benefits, the income received is taxed at your NZ tax rate as part of your worldwide income. If the scheme is transferred to NZ, benefits can be taken free of tax as tax paid income. Combine early retirement with taking income from the UK and this is what leads to such a heavy reduction in benefits as noted in the “I may want to retire early” section above.
A vital decision to make
For most people the main decision to make when considering starting to take benefits from their pension scheme is “what is most important to me, the guarantees offered by my UK final salary scheme or maximizing my retirement income”. Getting advice in this important decision, based upon your own personal circumstances, is vital. Please Contact Us for help in reaching this decision.
Can transferred monies be kept in Sterling once in the NZ pension scheme?
The ability to keep your transferred pension fund in Sterling is vital and can make thousands of dollars difference to your fund and therefore your pension income. We only recommend NZ Superannuation Schemes that can keep UK pension transfer money in Sterling and for an unlimited timeframe to provide you with maximum possible control. The schemes we use also offer the facility to invest into Sterling denominated assets so you can get invested if required to start to get your fund working for you, to keep ahead of inflation.
Other issues to consider
- Accessing my money before I could in the UK
- Eliminating currency exchange risk when taking income
- Maximizing the amount of tax free cash
- The need to consolidate into one UK scheme before leaving the UK or transferring to NZ – there is no need to do so and it will cost you in unnecessary charges!
- The cost to transfer – what will an adviser charge you?
- The security of your UK pension scheme
- Investment choice and control
- Availability of information on your scheme
- Will I return to the UK?
All of the above issues are covered in detail in our free UK Pension Transfer Guide. To receive a copy of this guide please contact us
Information provided is generic only and should not be taken as advice. The decision on whether to transfer will be based on different factors for each individual and should be based on your own individual circumstances.
Our Disclosure Statements are available upon request and are free of charge.
