Another moving to Oz Pension Pot Question

[cathntone]

I hope someone will know the answer to this one. We are in the process of applying for Contributory Parent Visas (application acknowledged in November '07). Hubbie is already retired, I plan to hang in there until next year. I have a small personal pension pot which under current UK regs I will have to use to purchase an annuity when I am ready. I will have too much pension elsewhere for it to qualify as a small pension ie draw the whole lot down as cash. But the pension it will buy will be negligible. I know that folks moving to Oz can transfer their pension funds over and I read somewhere that they can use it for whatever investment purpose they think best. So after all that, the question is, can I do the same. Get to Oz and have it paid to me there as cash.

 

Thanks

Cathy

[Guest Pinhead]

I don't the answer to your question but I thought I'd add another related one.

 

I have a Stakeholder Pension which has my SERPS opt out money in it. I was told that I couldn't merge it (opt out part) into my Personal Pension due to some regulations regarding how you can use your opt out pot.

I've seen other threads re moving your UK defined contribution pensions to Oz but is there a similar restriction on moving the opt out money to Oz?

 

The amount of the opt out is a fraction of the total pot & would be pointless to leave in the UK on it's own.

[Alan Collett]

- I moved my opt out of SERPS fund (called a Protected Rights fund) into an Australian superannuation fund, so it is do-able.

 

- Note that to avoid a UK tax charge you cannot receive a benefit from the transferred fund for at least 5 complete tax years after you depart the UK. If you are OK with this you can reasonably contemplate accessing the entire pension fund free of tax in Australia a few years hence.

 

Best regards.

[Guest dwaldron]

Yes I moved mine over too using AMP and did it myself, they pretty much completed the forms for me etc and it turned up here in Oz about 3-4 months after starting the whole process, so it's something you need to get on with quickly to avoid the within-6-months-nasty-tax rule.

[cathntone]

It would be good if someone out there knows the answer to my query. I realise that eventually we will have to pay for formal financial advice but in the meantime the question of what I can do with my small pot would be nice to know.

[Guest Liam]

Hi Cathone

 

You can transfer the pension including the Protected rights portion but you cannot use it for whatever investment purpose you think best. It is transferred to a Qualifying Superannuation (Pension) scheme over here and invested for Retirement savings purposes within the options available. As Alan said any movements or withdrawals have to be reported back to the UK Tax man for 5 years after the transfer. It can be accessed from age 60 tax free and used for any purpose at that stage or depending on your date of birth from age 55 but you will pay tax on it (subject to a Tax rebate of 15%)

 

Hope this helps but you should get personal advice before making a decsion.

 

Liam

[cathntone]

Thanks Liam. I'll be 60+ by the time I want to do something with it and I would rather pay tax (I think) than have it stuck in some annuity paying a pittance. But as you rightly say, I will need to get formal advice nearer the time.

 

Cathy