Frequently
Asked Questions
What
are the criteria I need to meet to be able to transfer?
In general you will need to have permanently emigrated to New Zealand
with no intentions of returning to the U.K. You must have either
have been granted permanent residency or have submitted an application.
You must also be in full time employment (or self employment) here.
Does it matter if I haven’t got a NZ superannuation
scheme?
No, we will arrange this for you. In order to complete the transfer
it is a requirement that you are a member of an approved scheme
in New Zealand and that your U.K funds are paid directly into your
New Zealand scheme. We have arranged special terms with some of
Australasia’s leading fund managers and will open a plan for
you. We will supply you with full details and an investment statement
when we meet with you.
Is the
receiving scheme a Qualifying Recognised Overseas Pension Scheme?
We use a well known Fund Manager, the receiving scheme has consistently
received a 5 star rating with independent researcher Fundsource.
The scheme has approval from HMRC in the UK as a QROPS and so there
is no UK tax payable on transfer.
Who handles my money and how safe is it?
We do not handle client’s money. All transfer proceeds are
paid directly by your UK pension fund to your N.Z superannuation
fund.
How much do you charge?
We receive a commission from the New Zealand superannuation fund
manager which is paid for out of the buy/ sell spread on funds transferred
into your New Zealand plan. This is usually 4%. There are no additional
or hidden charges on transfer such as consultation fees or administration
costs. Full details of charges and commissions are given in the
Investment Statement and our Investment Adviser’s disclosure
statement which is provided to all clients.
Can the money be paid straight into my bank account?
No, it is a requirement of the UK legislation that funds are paid
directly to an approved superannuation scheme in New Zealand.
Can I do it myself?
We have acted for clients who have tried this route and have got
nowhere. We would suggest that there isn’t anything worth
gaining in doing it yourself.
I have been told I cannot transfer?
We never take no for an answer! Whilst we cannot guarantee to succeed
we will assist you by looking into ANY funds you have with ANY UK
pension scheme. Contact us.
Are there any circumstances in which I shouldn’t transfer?
Yes, there are. Some clients may have older pension plans with benefits
such as guaranteed annuity rates set when interest rates were much
higher than today. In these circumstances you need our expert advice.
How long does it take?
Our quickest transfer was completed in a record six weeks, and our
longest took fifteen months (please note that the UK fund had frozen
any transfers out which made matters particularly complex). Generally
speaking the average transfer takes about three to four months.
What about foreign currency exchange rates?
Funds are usually sent from the UK in GB pounds. The exchange rate
applied is the rate applying when the funds arrive in New Zealand.
Whilst there are many commentaries and opinions published about
future exchange rates we believe that these are exactly that “opinions”
-No one can predict future exchange rates accurately. We prefer
to be factual so we constantly monitor the UK pound vs. NZ dollar
exchange rates and keep potential clients informed of the current
and historic exchange rates.
Can you tell me what the current rate of New Zealand Superannuation
is?
For current after tax rates of New Zealand Superannuation click
here.
A pop up window will open.
I’ve already started to draw my UK pension can I still
apply for a lump sum transfer?
No, once your pension has come into payment there is nothing you
can do.
Can
I transfer my UK Pension into a KiwiSaver scheme?
In order to transfer tax free from the UK, the receiving scheme
in New Zealand must be a qualifying recognized overseas pension
scheme, approved by HMRC in the UK. Very few KiwiSaver schemes have
QROPS status. A word of warning KiwiSaver
locks in your money until you qualify for NZ Super (currently 65).
The minimum UK retirement age is currently 50 (rising to 55 in 2010)
so whilst we believe KiwiSaver is a brilliant scheme, and everyone
should join, unless you want to lock away your money until you are
65 plus, we do not recommend Kiwisaver for overseas transfers.
Can
you give me advice on Kiwisaver?
Yes- we are brokers for several Kiwisaver schemes. We can explain
everything to you, get you started, and provide ongoing support
and advice.
Click
here to complete a confidential enquiry
form. We guarantee to contact you within 24 hours.
All
content © copyright to Nick Powell - UKtoNZ Pension Transfers
2004 - 2011. Last updated October 2010
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