Stakeholder pension - UK

[gtaylor30]

I have about £6000 in a stakeholder pension in the UK and am considering my options. I've read the advice here about the QROPS thingies, and am wondering what to do. Basically, in September I move permanently on a 189 to Aus. Now, as my pension pot isn't large, but the money would be useful, is it possible to actually transfer it to an appropriate scheme in Aus and access it? I'm only 36, and I've been told that in the UK you can't get at it till you're 55. Otherwise, not sure what to do about it. Whether to leave it in the UK, or move it over and let it grow when I get work. Please provide some advice.

 

Graeme

[Notts]

I have about £6000 in a stakeholder pension in the UK and am considering my options. I've read the advice here about the QROPS thingies, and am wondering what to do. Basically, in September I move permanently on a 189 to Aus. Now, as my pension pot isn't large, but the money would be useful, is it possible to actually transfer it to an appropriate scheme in Aus and access it? I'm only 36, and I've been told that in the UK you can't get at it till you're 55. Otherwise, not sure what to do about it. Whether to leave it in the UK, or move it over and let it grow when I get work. Please provide some advice.

 

Graeme

 

QROPS have reporting obligations for a number of years after you transfer the money, so HMRC will find out if you withdraw the money. Any withdrawal that wouldn't be allowed in the UK is likely to attract an unauthorised payment charge (tax) of 55%.

[Andrew from Vista Financial]

Hi Graeme

 

Notts is correct in accessing pensions early could lead to issues/charges from a UK point of view.

 

In any event if transferred to Australia it would be subject to Australian Superannuation legislation whereby the money could not be accessed until such time as a condition of release was met and in your case the earliest access for retirement purposes would be age 60 (possibly moving to age 62).

 

Regards

 

Andy