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Brynno

Possible prohibition on transferring pensions from UK to Aus

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As a 10yr resident of Aus (never thought of going back even for a nanosecond) I suddenly find my hotmail and LinkedIn accounts being bombarded with scaremongering mail urging me to "transfer pensions now" and "get it done quick or lose it".

 

As the holder of a MOD (UK), local government and NHS pensions I have to admit to being a bit twitchy about this mail. I understand that I will still be able to claim the pensions and that only certain pensions will be affected subject to a review by the UKPA (Pensions Agency?) as outlined with such simplicity in the last Budget.

 

Does anyone know when this review will be finalised and what the current status of the pension transfer issue is? I certainly won't be handing anything over to these charlatans and probably won't have to after I collect my Nigerian lotto winnings.

 

Any help appreciated.

 

Regards

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Hi

 

In the April 14 budget the chancellor announced that public sector pensions would not be transferable to QROPS as from April 2015. private sector pensions will still be transferable. You do need to check this out!

We are still in the Uk but will be moving out to Oz as soon as our 143 visa is granted. As we are approaching pension age we have checked this out. If you want you pension paid in AUD and no tax on it I suggest you investigate quickly. QROPS transfer take quite a bit of understanding.


CPV 143 lodged 23 June 2014,receipted 8th September 2014, acknowledged 4th February 2015, police reports 19th May 2016, medicals 12 July 16,Form 80, Police reports&passport details uploaded 18 Sep. AOS lodged 14 Sep 16 2nd VAC paid 25 NOV 16 Visa granted 30 Nov 2016

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Hi,

I'm a UK MoD pension holder also. We're moving over to Qld in November. As far as I am aware, you won't loose anything. There has been some talk of the UK stopping the transfer of some "finishing salary" pensions from the UK (that i've read), but nothing seems to be concrete at present. I'm no expert but will be looking to transfer mine very soon, as talk is of March 15 being a cut off, potentially. Sorry it's nothing conclusive, but i'll add some more after speaking to the pension transfer folk. :)


In sunny Townsville... :wink:

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Please do not get caught out by firms sending e-mails remember they are in it for a cut when I looked some were wanting up to 25% of your pot and also if you have been in OZ as a permanent resident for longer than six months then you will have to pay 15% contributions tax on the amount deposited into a QROPs pension. This is assuming that the amount is below certain levels.

 

I was advised to leave my Defined benefit pension in the UK and am now drawing it yes you pay tax but if you also have tax free super you only pay at the marginal rate above the $18000 + limit. However your Aussie Super is not included and doesn't even need to be put on your tax return.

 

Get paid advice it could save you thousands as every bodies situation is different.

Remember your UK pensions will probably be index linked guaranteed for life with widows/widowers pension rights.

 

 

See also these threads as it has been discussed a number of time here.

 

http://www.pomsinoz.com/forum/money-finance/214382-ban-uk-pension-transfers.html

 

http://www.pomsinoz.com/forum/money-finance/217396-uk-pension-transfer.html

 

Just got home after a night out but Ive got a bee in my bonnet about these firms who are in it for themselves and the advice they give is aimed at getting you to transfer.

Edited by winter1

:confused:

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Can you just leave your UK pensions where they are, and then start to draw upon them when you reach retirement age?

 

I worked for Royal Mail for twelve years and my pension have just started to draw my pension. Naturally, I am subject to the whims of the FX rate, but apart from that, I see no problems. Together with my Australian pension, and UK rent, it is just part of my retirement income.

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Can you just leave your UK pensions where they are, and then start to draw upon them when you reach retirement age?

 

I worked for Royal Mail for twelve years and my pension have just started to draw my pension. Naturally, I am subject to the whims of the FX rate, but apart from that, I see no problems. Together with my Australian pension, and UK rent, it is just part of my retirement income.

 

 

I left my Local Government Pension in the UK and it is upgraded by CPI every year and hopefully when the Aussie dollar returns to average exchange rates (likely when the recovery takes hold in the UK and UK interest rates increase). Only the UK aged pension is frozen. They cannot stop you from drawing it when you reach pension age and this is not being changed.

Edited by winter1

:confused:

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Hi All,

Thanks for the initial post Brynno, it has spurred me on to look into this area a bit more closely. The links to the previous threads were very helpful winter1, I now have a completely different view of this subject, and have decided to leave my pension where it is, for now. On a slightly different note, can anyone advise on topping up of UK NI contributions to continue entitlement to UK state pension? Thanks all, very informative so far. :)


In sunny Townsville... :wink:

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Hi All,

Thanks for the initial post Brynno, it has spurred me on to look into this area a bit more closely. The links to the previous threads were very helpful winter1, I now have a completely different view of this subject, and have decided to leave my pension where it is, for now. On a slightly different note, can anyone advise on topping up of UK NI contributions to continue entitlement to UK state pension? Thanks all, very informative so far. :)

 

Glad to be of help Nearlythere.

 

As for the topping up of your NI contributions this can be done through the DWP you will need 35 years for a full pension from 2016 or 30 if you retire before this. If you are in paid employment for an Australian employer you can pay the lower class 2 contributions.

If you are self employed or not in employment it is more expensive (this may seem a bit bizarre). Remember the aged pension is Frozen at the rate you first draw it, however there are campaigns from British Australian Pensioner Association affiliated to the Consortium for British Pensioners. I am optimistic that at some stage in the future this wrong will be righted but it may take some time.

 

In the meantime this link may be of use.

 

http://www.expatknowhow.com/Images/going-to-live-abroad%5B1%5D.pdf

 

Page 16 has the relevant addresses and phone numbers.

 

Good Luck

Edited by winter1

:confused:

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We both had our Teachers Pensions in Uk and were happy with that till the govt began to mess around with the final sum calculations. We stood to loose masses.

 

We did a Super to super transfer but NOT through one of these email sharks. We got our Oz super fund to organise it. At the time we lost $35 in tax to ATO. Ouch. (Me $15k OH $20k) but in the year since, our Super fund has grown our transfer over $80k so we have recouped the loss, plus a stack more. We have a "low-medium risk" package with our super fund (it invests in property and safe home industries rather than volatile markets) so the growth hasn't been as big as it could have been. We are very cautious financially as we don't have money to lose, but thrilled now we made the Super move. It was scary at the time but time has shown it was worth it.

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We both had our Teachers Pensions in Uk and were happy with that till the govt began to mess around with the final sum calculations. We stood to loose masses.

 

We did a Super to super transfer but NOT through one of these email sharks. We got our Oz super fund to organise it. At the time we lost $35 in tax to ATO. Ouch. (Me $15k OH $20k) but in the year since, our Super fund has grown our transfer over $80k so we have recouped the loss, plus a stack more. We have a "low-medium risk" package with our super fund (it invests in property and safe home industries rather than volatile markets) so the growth hasn't been as big as it could have been. We are very cautious financially as we don't have money to lose, but thrilled now we made the Super move. It was scary at the time but time has shown it was worth it.

 

 

Hi AliB

 

I remember reading this post and thought I must ask but never got round to it.

 

Can I ask in relation to your tax, was this the actual tax bill or was this the Applicable Fund Earnings?

 

Andy


Financial Adviser (FPA Member AFP ®) Specialising in UK Expat Advice and Pension Transfers / AR-322874 /AFSL-234951

SMSF Accredited Adviser / UK SIPP Authorised Adviser 

Director  - Vista Financial Services – www.vistafs.com.au 08 8381 7177

 

Please note that my advice is general advice only and professional financial advice should be sought for your own personal situation.

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