Managing UK Pension with AHR Wealth Management

[sjb379]

I am looking at managing my UK pension while my wife and I are deciding our long-tern plans for Australia (on a 4 year visa ending in 2022, but considering going for Permanent Residency). I have been speaking to a company called AHR Wealth Management and wondered if anyone has any experience with them. They give pensions advice, including investment advice and seem to know their way around both UK and Aus systems, especially the intricacies of moving pensions around should we decide to stay in Aus.

Their website and LinkedIn profiles have a lot of personal citations, but it would be good to get a first-hand view from this forum if anyone has dealt with them.

Thanks

Stephen

[Marisawright]

There's very little intricacy involved in transferring a UK pension to Australia at the moment. There is only one company that can accept the transfer, unless you open a SMSF (self-managed super fund) which is not practical unless you have a very large balance (and is also not nearly as straightforward as it sounds, as I know from costly experience!). 

Anyhow, you would be absolutely crazy to transfer your pension until you have gained your permanent residency, which likely won't be till 2023.  Once you have transferred your UK pension into an Australian fund, you can't transfer it back, so you need to be 110% sure you are staying in Australia permanently.  

In the meantime, I am curious what this company could do for you while your UK pension remains in the UK.

 

[sjb379]

Thanks - Yes definitely not planning to move anything to Aus until we know what our long term plans are. The proposition from AHR is to consolidate my personal pensions into one, and set up a SIP in the UK (similar to SMSF in Aus) to manage the investments. Using a SIP looks like it is capable of returning more than the big pension companies can do,  but will need more time and effort to achieve.

AHR Wealth Management look bona fide but it always pays to get real world opinions.

Stephen

[Marisawright]

59 minutes ago, sjb379 said:

Thanks - Yes definitely not planning to move anything to Aus until we know what our long term plans are. The proposition from AHR is to consolidate my personal pensions into one, and set up a SIP in the UK (similar to SMSF in Aus) to manage the investments. Using a SIP looks like it is capable of returning more than the big pension companies can do,  but will need more time and effort to achieve.

That sounds like something you could do even if you were still resident in the UK so there should be plenty of companies that could assist you in the UK. Unless there's some special reason that being non-resident changes the rules, I would also be consulting UK firms who manage pensions to see what they offer.

Firms that cater to expats are dealing with a special, usually affluent market and they are notorious for charging higher fees because their advice is "specialised"for expats.   You're not an expat, you're going to be a migrant. There's a big difference, and expat advice is often not relevant.  So if they do charge higher fees I couldn't see the point in you paying them, so I'd check to compare costs.

Edited May 14, 2021 by Marisawright

[Ken]

On 14/05/2021 at 10:54, sjb379 said:

Thanks - Yes definitely not planning to move anything to Aus until we know what our long term plans are. The proposition from AHR is to consolidate my personal pensions into one, and set up a SIP in the UK (similar to SMSF in Aus) to manage the investments. Using a SIP looks like it is capable of returning more than the big pension companies can do,  but will need more time and effort to achieve.

AHR Wealth Management look bona fide but it always pays to get real world opinions.

Stephen

Consolidating your pensions into one should save on some fees but isn't necessarily a good idea. Should you choose when you are over 55 to liquidate a UK pension you are liable for tax in Australia on the AFE of the whole fund (even if you've only withdrawn 25% so as to be tax free in the UK). If you are able to liquidate one small fund at a time you can spread the tax bill.

Another tip when doing this is to put the AFE amount into Super (and claiming the deduction) and just keep the tax free part (that's the value of your fund when you moved to Australia). Your Super balance will be hit by 15% tax on the AFE (and your total retirement savings by that and the amount you've pocketed) but it's worth it for some people. 

Edited May 15, 2021 by Ken

[GeeBee]

When I left the UK and moved to Aus I was called by numerous people asking to do various things with my UK pension. How they got wind of my situation and my contact details I could never work out. But anyone cold calling me about such matters I always assumed was kind of Jordan Belfort trying to rip me off. At least one of those companies that did call is no longer in business. 
 

I don’t know anything about AHR Wealth management but I have seen their adverts clogging up my linkedin feed recently. If you’re looking for some assistance with important matters such as these I always think it’s better to seek out these companies (via referrals if possible), rather than let them find you. Try to find some companies you can compare with, if you haven’t already. 
 

 

[TheFinanceGuy]

On 14/05/2021 at 10:54, sjb379 said:

AHR Wealth Management look bona fide but it always pays to get real world opinions.

Hi Stephen, 

What makes you believe that AHR Wealth Management are bona fide? 

I can see from their LinkedIn page they are based in Dubai and do not have an office in Australia. This is a huge red flag. These 'providers of cross border solutions' usually place themselves in countries such as Dubai, Hong Kong, UAE due to the lack of regulations. In terms of providing advice should you decide to stay in Australia, I almost guarantee they cannot assist with this, as I do not believe they are licensed to provide advice in Australia. Which also means they are not regulated. 

In my opinion, this company does not look legit and I can predict the advice you will receive. They will recommend a SIPP, with some insurance bond within this to hold your investments. The insurance bond, not only is it not required, but will pay the adviser an upfront commission - that you will then pay over the lifetime of the bond.   

I completely agree with the above. If you have been cold called in regard to this (usually finding your details on LinkedIn, with a link to the UK), be extremely careful.