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Guest Sam907

bringing your pension savings to Aus

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Guest Sam907

My partner coming to Aus from UK, has being paying into a pension/retirement fund, can he roll it over to an aussie superfund? What is the best way to go about this? Id like to hear from ohters, ie can you draw it out on the grounds of immigration?

 

cheers Sam

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Guest Catwoman

you can transfer pensions from the UK but you would be unable to transfer back if you choose to return. We used Global Destiny to transfer our pension from UK to Oz, www.globaldestiny.com.au the website has all the details and the form you need for applying,

the transferred pension has to go into a qualifying recognised overseas pension scheme (QROPS)

the whole process was made very easy as Global Destiny do all the work, once you give them the go ahead they will contact UK providers and get the value of your pension pot. then they send you a detailed report of your pension values on transferring before you even commit to completing the transaction and they only charge you a small % taking the payment at source once the transaction is all complete. if you transfer within 6 months of arriving there is no tax charged, we transferred our pensions after 6 months of arriving in Oz therefore we had to pay tax on the difference of the value from the date when we left the UK to the value on the date of the transfer

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Guest Sam907
you can transfer pensions from the UK but you would be unable to transfer back if you choose to return. We used Global Destiny to transfer our pension from UK to Oz, www.globaldestiny.com.au the website has all the details and the form you need for applying,

the transferred pension has to go into a qualifying recognised overseas pension scheme (QROPS)

the whole process was made very easy as Global Destiny do all the work, once you give them the go ahead they will contact UK providers and get the value of your pension pot. then they send you a detailed report of your pension values on transferring before you even commit to completing the transaction and they only charge you a small % taking the payment at source once the transaction is all complete. if you transfer within 6 months of arriving there is no tax charged, we transferred our pensions after 6 months of arriving in Oz therefore we had to pay tax on the difference of the value from the date when we left the UK to the value on the date of the transfer

 

 

 

Thank you so much! It sounds alot easier than we predicted. Really appreciate that

 

Cheers Sam

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Guest peacock

I had a quote from global destiny, I left it a few weeks and they kept coming back to me reducing there costs dramatically to get by buisiness, so dont sign straight away.

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Dont bring it over until you are sure this is where you want to grow old. Once in an Aus super fund it is there until you retire if you have permanent residence and you cant take it out again if it all goes pear shaped.

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I agree quoll...hubby is an Australian now living permanently in the UK, and even though he now pays into a uk pension, his Aussie super is stuck there in Aus until he retires, eventhough he has no plans to return there. Be careful cos once yer pot is in their hands you cant get it back for years

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you can transfer pensions from the UK but you would be unable to transfer back if you choose to return. We used Global Destiny to transfer our pension from UK to Oz, www.globaldestiny.com.au the website has all the details and the form you need for applying,

the transferred pension has to go into a qualifying recognised overseas pension scheme (QROPS)

the whole process was made very easy as Global Destiny do all the work, once you give them the go ahead they will contact UK providers and get the value of your pension pot. then they send you a detailed report of your pension values on transferring before you even commit to completing the transaction and they only charge you a small % taking the payment at source once the transaction is all complete. if you transfer within 6 months of arriving there is no tax charged, we transferred our pensions after 6 months of arriving in Oz therefore we had to pay tax on the difference of the value from the date when we left the UK to the value on the date of the transfer

 

Hi

 

Do you mind me asking how long the whole tranfer process took? We would need to have the tranfer completed by the time we arrive in Oz as we would be living from our pensions.

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I had a quote from global destiny, I left it a few weeks and they kept coming back to me reducing there costs dramatically to get by buisiness, so dont sign straight away.

 

Hi Sorry if you think this is intrusive, but do you mind me asking what percentage they quoted you? We have been quoted between 3 and 5% which is quite a substantial sum if you are near retirement age and have accumulated a tidy sum!

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Hi

 

Do you mind me asking how long the whole tranfer process took? We would need to have the tranfer completed by the time we arrive in Oz as we would be living from our pensions.

 

 

Hi Linday

 

One very important point when moving UK Pensions to Australia is the 5 year rule set by HM Revenue and Customs (HMRC).

 

Make sure that whoever you are dealing with fully understands this as any unathorised transfers or withdrawals made from UK Pensions within this timeline are subject to a minimum 40% tax.

 

 

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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Guest Catwoman
Hi

 

Do you mind me asking how long the whole tranfer process took? We would need to have the tranfer completed by the time we arrive in Oz as we would be living from our pensions.

 

the process only took a couple of months as they had to contact a number of pension providers to get all the information,

just be mindful i'm not sure if its possible to transfer before coming out to OZ though, :no:

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Hi Linday

 

One very important point when moving UK Pensions to Australia is the 5 year rule set by HM Revenue and Customs (HMRC).

 

Make sure that whoever you are dealing with fully understands this as any unathorised transfers or withdrawals made from UK Pensions within this timeline are subject to a minimum 40% tax.

 

 

Andy

 

Hi Andy

 

Can I just clarify this please as we have been advised that it is possible to transfer our pensions before we move out to Oz and then start drawing them shortly after we arrive? Are you saying this is not possible? Not sure what the five year rule is?

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Hi Andy

 

Can I just clarify this please as we have been advised that it is possible to transfer our pensions before we move out to Oz and then start drawing them shortly after we arrive? Are you saying this is not possible? Not sure what the five year rule is?

 

 

Hi Linday

 

 

If you have not been advised about the five year rule then I would tread very carefully with the people you are dealing with. This is a very important issue and it is imperative that it is not breached otherwise a hefty charge could be on its way.

 

There is a period of five full tax years that must pass of someone being a non UK tax resident before transferred Pension money is no longer under obligation to HMRC.

 

Any transfers/withdrawals made within this time period must be made within terms set by HMRC.

 

The main one to be taken into consideration for people transferring Pensions is to ensure it is transferred into a scheme recognised by HMRC this is known as a QROPS scheme. This is a fairly well know situation and not that difficult to get right.

 

The next consideration is for those that may want to access the monies within that time period. It is not a case of not being able to but how much they are able to. There are prescibed limits set out by the UK as to how people can draw their retirement monies and how much they can access.

 

If these amounts are breached they then fall into an unauthorised payment category and large penalties will apply.

 

Once transferred Pensions have entered into Australia not only do they still have an obligation to HMRC for a time period they now become regulated within the Superannuation rulings.

 

Superannuation works differently to UK Pensions and there are certain criteria that also must be met before monies can be accessed and how it can be accessed.

 

Also Superannuation and Australian Pensions have different rulings attached, if someone has money in an Australian Pension fund again there are prescribed amounts that must be taken from the balance. The prescribed limits set by HMRC and Australia are not the same and again very careful consideration and planning must take place to ensure breaches do not occur.

 

Your case is obviously not a straightforward transfer and I would advise that you seek professional advice from Advisers that are fully aware of UK and Australian systems and the complexities before transferring or attempting to transfer yourself. Pensions transfers are a very complex area with lots of rulings and reporting requirements and this is why it often appears to be an expensive process but the reality is a Financial Planner should spend a considerable amount of time researching your pensions and advising you of all your options before proceeding with the transfer.

 

In your case in addition to the transfer you will need specialist advice on withdrawal amounts and reporting obligations as you will not simply be able to withdraw the money when it arrives and if you fail to follow the correct procedures you will be liable to significant penalties.

 

 

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 can transfer pensions from the UK but you would be unable to transfer back if you choose to return. We used Global Destiny to transfer our pension from UK to Oz, www.globaldestiny.com.au the website has all the details and the form you need for applying,

the transferred pension has to go into a qualifying recognised overseas pension scheme (QROPS)

the whole process was made very easy as Global Destiny do all the work, once you give them the go ahead they will contact UK providers and get the value of your pension pot. then they send you a detailed report of your pension values on transferring before you even commit to completing the transaction and they only charge you a small % taking the payment at source once the transaction is all complete. if you transfer within 6 months of arriving there is no tax charged, we transferred our pensions after 6 months of arriving in Oz therefore we had to pay tax on the difference of the value from the date when we left the UK to the value on the date of the transfer

 

Hi, I'm in the process of transfering my UK pension into a Super fund ( BT) and just a note to say, be careful when you transfer as it normally takes about two or three weeks to do the transfer. In that time you will have no control over the exchange rate so when the day comes for the transfer you will get the market rate at that time, transfered normally using SWIFT.

As you are well aware the dollar is far too strong at the moment so if you don't need access to your pension straight away you may want to consider holding off a while. Having said that it could be a long while before it may be at anywhere near what most people would call decent.

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Guest peacock
Hi, I'm in the process of transfering my UK pension into a Super fund ( BT) and just a note to say, be careful when you transfer as it normally takes about two or three weeks to do the transfer. In that time you will have no control over the exchange rate so when the day comes for the transfer you will get the market rate at that time, transfered normally using SWIFT.

As you are well aware the dollar is far too strong at the moment so if you don't need access to your pension straight away you may want to consider holding off a while. Having said that it could be a long while before it may be at anywhere near what most people would call decent.

 

Will the $ to pound ever go back to previous rates ?, the new post GFC world we live in , there will be changes in the world order, the UK and US may not be part of this with there huge debts,

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Hi Linday

 

 

If you have not been advised about the five year rule then I would tread very carefully with the people you are dealing with. This is a very important issue and it is imperative that it is not breached otherwise a hefty charge could be on its way.

 

There is a period of five full tax years that must pass of someone being a non UK tax resident before transferred Pension money is no longer under obligation to HMRC.

 

Any transfers/withdrawals made within this time period must be made within terms set by HMRC.

 

The main one to be taken into consideration for people transferring Pensions is to ensure it is transferred into a scheme recognised by HMRC this is known as a QROPS scheme. This is a fairly well know situation and not that difficult to get right.

 

The next consideration is for those that may want to access the monies within that time period. It is not a case of not being able to but how much they are able to. There are prescibed limits set out by the UK as to how people can draw their retirement monies and how much they can access.

 

If these amounts are breached they then fall into an unauthorised payment category and large penalties will apply.

 

Once transferred Pensions have entered into Australia not only do they still have an obligation to HMRC for a time period they now become regulated within the Superannuation rulings.

 

Superannuation works differently to UK Pensions and there are certain criteria that also must be met before monies can be accessed and how it can be accessed.

 

Also Superannuation and Australian Pensions have different rulings attached, if someone has money in an Australian Pension fund again there are prescribed amounts that must be taken from the balance. The prescribed limits set by HMRC and Australia are not the same and again very careful consideration and planning must take place to ensure breaches do not occur.

 

Your case is obviously not a straightforward transfer and I would advise that you seek professional advice from Advisers that are fully aware of UK and Australian systems and the complexities before transferring or attempting to transfer yourself. Pensions transfers are a very complex area with lots of rulings and reporting requirements and this is why it often appears to be an expensive process but the reality is a Financial Planner should spend a considerable amount of time researching your pensions and advising you of all your options before proceeding with the transfer.

 

In your case in addition to the transfer you will need specialist advice on withdrawal amounts and reporting obligations as you will not simply be able to withdraw the money when it arrives and if you fail to follow the correct procedures you will be liable to significant penalties.

 

 

Regards

 

 

Andy

 

Many thanks Andy

 

We are currently at the early stages of exploring our options and have had an initial telephone chat with a reputable advisor. The five year rule was mentioned, but obvoiously we have not yet proceeded any further as yet till our visa comes through but I like to get as much information as possible in advance so that we at least have some idea of what advisors are talking about and what the pitfalls can be.

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Guest Dave hall

Hi,

have any of you heard of a TVA report. I have been told not to do a QROPS transfer unless this has been done. As without it you cannot tell if you will be better off or not. I have Googled QROPS TVA, and the only thing that comes up is a company called OIIA who I have never heard of.

 

QROPS Pension Transfers. OIIA QROPS transfer specialists.

 

They seem OK and I have found some good reports about them. But has anyone used them in OZ.

 

Please help.....:chatterbox:

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