QROPS / UK-Oz Pension Transfer

[JackRTR]

Hi All,

I work in a community advocacy role and lately I've had a few people pop up with some issues around QROPS / UK-Aus Pension Transfer issues. I know a little bit about it but I'm trying to find out more - particularly peoples' real-life experiences. 

What has been your experience in this space?

Positive, negative, companies to avoid, positive companies, live issues, old issues... anything will help!

[Marisawright]

It has been impossible to transfer them to Australia in recent years, because there have been no compliant superannuation funds available. 

I believe there might be (or about to be) one or two now. 

The issues are so complex that no one should attempt the transfer without an adviser knowledgeable about pensions and tax in both countries. Getting it wrong can mean losing a lot of your nest egg.

One big thing to look out for is that many UK pension funds still have defined benefits (I.e. a guaranteed regular payment till you die). Superannuation is just a money invested, and the pension only lasts as long as the money does. 

[NicF]

My OH recently transferred his UK pension to Australia.  You have to be over 55 to be able to transfer out of the UK and if you have a defined benefits pension in the UK you have to get financial advice from a UK financial advisor before you can access the funds.  There is currently just one retail fund in Australia that you can transfer to (can’t remember the name sorry) or you can open an SMSF to take the funds instead.  We used Vista Financial Services to transfer my OHs pension and they did all the work but it was still a bit of a hassle. The whole process took ages and the pension fund in the UK required all sorts of paper work and confirmations before they would release the funds.  Definitely recommend using an experienced person / company to deal with the transfer.