Transferring UK Pensions to Australian Super
We work with UK expats in Australia in planning for their retirement and this includes assessing where there retirement monies might be best placed for this.
In many instances it makes sense for UK expats in Australia to transfer their UK pensions out of the UK so that they can enjoy a tax-free retirement in Australia.
We will provide advice on the most suitable outcome for you retirement monies (this may be in association with UK FCA regulated Advisers where appropriate) and if the outcome is that a transfer seems in your interests we will be able to advise on and administer the transfer.
Our service process is as follows:
•This can be face to face or over the phone;
•There is no charge for this consult;
•If it is agreed this seems a viable option we can move to the advice stage.
Statement of Advice
•Analysis of your position currently versus a transfer (inc tax implications)
•Transfer and Investment recommendations (if applicable)
Administration and Implementation
•Establishment of an Australian Superannuation Scheme
•Liaising with your current UK pension providers and facilitating the transfer
•Managing partial and staged transfers over a number of financial years for balances that are more than the Australian contribution caps (if applicable)
•Placing the investments in accordance with your investor profile (and recommendations)
Fees to Transfer (if appropriate)
Typically our fee is 2% inclusive of our advice fee to transfer
Please note that there is now the requirement to take UK FCA regulated financial advice from an Adviser qualified in advising on transferring out of Defined Benefit schemes if the value is over £30,000.
This will be conducted by our UK associates who are appropriately qualified in this area and have a very high reputation in the industry.
Further Super Funds (QROPS) added to HMRC ROPS list
Overnight a further three Super Funds were confirmed as obtaining QROPS status and added to the HMRC ROPS list. It would seem from my research that two of the funds are SMSFs and I would presume for members over age 55 only (although I cannot confirm this at this stage).
UK Pensions Transfers (over 55s) set to start again!
Following HMRC’s removal from the 1 July 15 Recognised Overseas Pension Schemes (ROPS formerly QROPS) list of virtually all of the Australian Superannuation Schemes due to them not meeting the new UK ‘Pensions Age Test introduced on 6 April 15 therefore halting UK Pension Transfers in their tracks it seems that Transfers will soon be starting again.
Australia effectively lose QROPS status
A recent amendment to UK Pension legislation has seen a potential raft of issues for recent and future UK Pension Transfers to Australia.
The UK’s latest QROPS list now known as the ROPS list released 1 July 2015 effectively has no Australian Superannuation Funds listed (other than 1 local government fund only available for QLD local government workers).
The below PDF article details the issues for past and future Transfers:
UK Pension legislation changes:
The UK March Budget saw some major announcements in relation to the UK Pension system due to these changes there are some implications in relation to the transfer of UK Pension to Australia more specifically the possibility of a Ban on Pension Transfers to Australia.
The below PDF article details the initial proposals:
Following the initial proposals a consultation occured so as to seek feedback from the proposals and then consider further the proposals:
The below PDF article details the outcome of the proposals:
From this outcome the following applies to UK Pension Transfers:
•Private Sector Defined Benefit Pensions continue to be able to be transferred;
•Public Service Funded Defined Benefit Pensions continue to be able to be transferred;
•Public Service Un-funded Defined Benefit Pensions can no longer be transferred (except in very limited circumstances)
Further to this I have personally contacted the UK Government to try and understand in what liimited circumstances transfers from Un-Funded Defined benefit Pensions may still be able to be transferred and have received the response below (PDF)
Vista's Free UK Pension Seminar
Vista is pleased to announce that the next UK Pension Transfer Seminar will be held on:
Andrew Williams will provide a comprehensive presentation regarding this complex area including the process of transferring your UK Pensions together with the potential advantages and disadvantages that a transfer may involve.
Andrew will be on hand to answer your questions and dispel the myths surrounding this area.
This event is a free, no obligation event and refreshments will be provided.
For more information or to book your place please contact us.