Money problems

[The Broughtons]

Okay here's the problem -

I have a teacher's pension and Michael has managed to accumulate 3 different pensions over the years. We know that in order to make our money work best for us in later years we are going to be better off transferring our pensions but... How do we do this???

Has anyone got any good advice they can share with us? Have any of you lovely people used any particularly good financial advisors in the UK who really did know their aussie stuff?

Also, on a slightly different but still financial note - which would be best? Transferring all the profits from our house sale at once or transferring it bit by bit once we are there? Once again, any advice, hints or tips welcomed with open arms!!!

Felicity (the reality is sinking in and we still don't have a visa!!!!)

[col&dee]

Hi Felicity,

I'm also a teacher and had thought about the pension issue also. (I live in Scotland though so don't know if same information applies, sorry if it's different in England).
I emailed the relevant pensions agency in Scotland to enquire about what options would be open to me concerning pension/moving to Oz. However, the result was that my pension cannot be transferred, it will remain in Scotland and I should contact the pensions office annually for a reviewed statement if I wish and I should then contact the office a few months before my 60th birthday to get my entitlement.
I'm not the most clued up person about these sort of financial matters and I'm sure someone in Poms will be able to give you exactly the information that you require.
My OH contacted Standard Life about his pension and he certainly had more options open to him than I did (he's working away from home this week though and I wouldn't be certain about the information he received so I'll not make a guess at it and end up confusing you with wrong information).
Denise

[Abi&Dan]

Dee - you've been given some dodgy info there - financial advice should definitely be taken before making the move with such an important benefit as a Teachers pension but there are very few circumstances were you cannot transfer and a goverment funded scheme is unlikely to ever be in that status. Someone needs to correct me if I'm wrong but I don't think a Scottish civil service pension would be any different.

However, you can only transfer UK pensions to Qualified Recognised Overseas Pension Schemes (QROPS) - there is a list on the HMRC website.

Fizz - there are issues with both transferring multiple funds and saving your house profits to move over bit by bit. From the new Oz tax year (01/07/07) you will only be able to transfer up to $450k from an overseas scheme to a QROPS in Oz - not that much if you have a teachers scheme or if your OH has 3 policies (bout £150k). I always say - it's so complicated and such a vital benefit it's well worth forking out a bit of cash and going to someone regulated who can advise you - particularly as you then have come-back if they mess up.

With your house profits - you have 6 months from becoming resident in Oz to transfer house profits otherwise they will count it as gains and tax you.

Hope this helps x

[newnico]

I'm struggling with this one, too, at the mo, and am going to see someone from prismxpats on Friday for advice. Can't remember where I found their name, probably on here, I keep scribbling things down everywhere! I also phoned a company called Alexander Beard and emailed them but they never bothered to reply. If you're interested to hear what I think of prism after my meeting, feel free to PM me. They did say to me they reckon for 30% of migrants it isn't worth transferring your pension. But I definitely can't work out for myself which percentage i come into!

Nico

[franny22]

I work for a large pensions company but not sure about the legislation in moving pensions to australia. What i can give you is the IFA helpline number which will give a list of 3 Financial Advisers in your area. Hope this helps

The number is 0800 085 3250

[Alan Collett]

Might be of interest ...
http://www.gomatilda.com/news/article.cfm?articleid=400

Best regards.

[Alan Collett]

Originally Posted by Abi&Dan

<snip>

With your house profits - you have 6 months from becoming resident in Oz to transfer house profits otherwise they will count it as gains and tax you.

Hope this helps x

Not correct I'm afraid ... the 6 month window applies to the transfer of pension benefits from the UK to Australia without there being a tax liability in Australia under section 27CAA of the Income Tax Assessment Act 1936.

Section 27CAA assesses the increase in the value of the overseas pension between the date you become a tax resident of Australia and the date the pension benefits are received in Australia.

The taxation of non-A$ currency is a different issue and requires a consideration of Australia's forex tax provisions and capital gains tax - both of which can affect you from day 1 of your becoming a tax resident of Australia, which in turn would usually be the day you arrive in Australia with the intention of residing there. There is no 6 month window in the context of the forex rules or CGT.

Best regards.

[franny22]

sorry but what was that in english?????? :p

[Alan Collett]

Engage brain, and then re-read ... :)

Best wishes.

[Smith Tribe]

Lets just ask again
If we have a £100000 in an english bank from our house sale and we take it with us, how much will we have in Oz. For simple terms we shall call the exchange rate 2.40 dollers to the pound, so how much if any do we lose in Taxes