Pensions

[Angiebaby]

Can anyone tell me what will happen to hubby's pensions when we move over to OZ??

He has paid into a private pension for over 16 years his company paid a percentage and he paid the rest then he was made redundant

we haven't a clue whether we will ever see this money again!!!!!!!!

Does anyone know or can give me any advice.......... Thank you in advance

Angie xxxx

[dwaldron]

You can transfer it over here but you can't transfer it back. If you transfer it within 6 months then there are no tax implications, after that you will pay tax on any growth. There are a few pension transfer companies about that will do the work for a fee.

My pension is only small - £8,000 - so I am trying to do it myself but I haven't got to the end of the road yet so I am not in a position to recommend a way of doing it yourself - yet. Maybe in a few months time!

[The Broughtons]

I recommend you get some advice and get the ball rolling before you leave for Australia. You have a 6 month time scale to transfer or something before tax and stuff kicks in. I don't completely understand it but we have a nice lady sorting it out for us. Michael has 3 pensions and I have a government teaching pension!

[dwaldron]

And don't be too concerned about the 6 month thing, the tax is only on the growth in the pension from 6 months after arrival until the transfer is completed and in today's sharemarket environment you may end up with little or negative growth and a consequently low tax problem. And... the tax can be taken out of the transfer amount if you wish as opposed to having to cough up the cash (that's the position with AMP anyway).

[Alan Collett]

Originally Posted by dwaldron

And don't be too concerned about the 6 month thing, the tax is only on the growth in the pension from 6 months after arrival until the transfer is completed and in today's sharemarket environment you may end up with little or negative growth and a consequently low tax problem. And... the tax can be taken out of the transfer amount if you wish as opposed to having to cough up the cash (that's the position with AMP anyway).

The tax liability is computed with reference to the value of the overseas fund on the day you commence tax residency, not 6 months afterwards.

Best regards.