Transferring Pension to Aus Super

[Stephen Nixon]

I was just wondering what type of things I need to be considering when deciding if it's worth me transferring my UK pension over to my Australian Super fund. I initially thought that it'd be better to transfer the pension, but the more I read the more differing opinions I see.

Is it as simple of weighing up the costs involved in transferring the pension against the expected gains between now an retirement?

[Quoll]

There's also the issue of what happens if you decide at some point that you aren't going to grow old in Aus and want to move on - your super stays there and can't be transferred back. If you have a final salary pension it might also be a riskier proposition.

[Andrew from Vista Financial]

I was just wondering what type of things I need to be considering when deciding if it's worth me transferring my UK pension over to my Australian Super fund. I initially thought that it'd be better to transfer the pension, but the more I read the more differing opinions I see.

Is it as simple of weighing up the costs involved in transferring the pension against the expected gains between now an retirement?

 

 

Hi Stephen

 

Firstly have a look here http://www.pomsinoz.com/forum/financial-advice-ask-vista/169401-uk-pension-transfers-information-thread.html this should provide some background.

 

Certainly not just a case of weighing up the costs there is a lot more too it than that.

 

The type of pension is important whether it is a defined benefit scheme or a defined contribution pension.

 

There are also quite a few other factors involved as there are differences between the UK system and Australian system for example:

 

 

 

• the age at which you might be able to access the benefits;

• the way in which you are able to access the benefits;

• the taxation treatment of the benefits;

• the way Centrelink will assess the benefits when in receipt for the purposes of Australian Age Pension;

• the way that the fund/income is treated upon death both pre and post retirement;

• the way HMRC may charge unauthorised payment charges on withdrawals within certain timescales if the fund is transferred to Australia.

 

 

These are just a some of the more prominent factors but hopefully gives some idea.

 

 

Regards

 

 

Andy