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watneyni

Pensions - transfer or not?

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Hi,

 

Just got my PR... so now have 6 months to transfer my pension, tax tree. I have found that Australian Super transfers are free and others (like BT) can change $1300 advisory and then 4.65% on the transfer :-(

 

My question is....what happens if i just leave my pension in the UK until I am 65/70 and then then just transfer the funds to AUS on an adhoc basis? Would this attract any tax etc. My Scottish widows pension has been performing at 60% over the last 5 years, so a little nervious to move it!

 

Cheers

 

Nick


Agent initated: 26 Jan 09 ACS Submitted (ACS PIM2 Group B - 2231-79): 25th Feb Result: pass 15th April 2009 176 family sponsored: lodges 17 April 2009... CAT 6 and waiting...

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Hi Nick

 

No need to transfer in the first 6 months, it can occur at any time, more important is things like intention to remain, age you wish to access funds etc.

 

Tax may be payable after 6 months but this is only on the growth aspect of the pension not the entire amount and can usually be mitigated to 15% or less in some cases. Also even if a transfer occurred before 6 months earnings on super are taxed between 10% and 15% anyhow therefore tax would also be payable on growth if transferred.

 

Australian Super are free as they do not provide advice (see also previous threads on here about service and forex conversion rates with them).

 

You can leave it in the UK but there may be tax implications on the monies if left which may not be the case here, also death benefits are likely to be treated differently.

 

Re the performance of your Scottish Widows, this sounds about right given the way that the markets have risen since the GFC, how your monies are allocated if transferred could likely be similar to how they are with your current UK scheme if that's what you wanted.

 

Perhaps consider paying for advice (from an Adviser not tied to a product provider) so that you have all the information you need to assist in making the decision that is right for you, the fee could well be worth it in the long run.

 

 

Regards

 

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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You never know, you might want to go back at some stage - once Aus has your super money you can't transfer it out again!

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