GB Pensions offer advice

WANT TO TRANSFER YOUR PENSION FROM THE UK to NZ? Be aware: the goal posts are moving again!

There have been several major – some might say draconian – changes to legislation affecting the transfer of UK pension schemes in the last year or so. First there was the cut-off date for transferring unfunded statutory (public sector) pension schemes, then the major cull of the NZ ROPS* list (which notably affected KiwiSaver, of course). The next overhaul, coming later this year, will seriously impact how much of a pension fund can be accessed and when.

Presently, UK regulations allow a New Zealand superannuation scheme with QROPS status to pay members a lump sum amount of approximately 30% of their transferred UK fund at age 55, plus provide an income for life.

However, New Zealand legislation coming into force on 1st December 2016 will restrict withdrawals significantly, only allowing less than 10% in total to be paid at this age. Conversely, in later years where the new rules allow a higher withdrawal, these will still be subject to the QROPS limits. In summary therefore, members of New Zealand QROPS will find themselves limited to whichever amount is the lowest allowed under UK or NZ legislation, when it comes to making withdrawals.

Therefore, if you wish to take advantage of the current legislation, it is imperative that your pension transfer is well underway prior to 30th November 2016. As it can typically take 6 months for the transfer process to complete, it is important that you act as soon as possible. or NZ QROPS (Qualifying Recognised Overseas Pension Scheme).

For a friendly chat about your pension transfer options, please phone GBPensions on 0800 427 693 or e-mail transfers@gbpensions.co.nz

Disclosure Statements for GBPensions’ financial advisers are available without charge or obligation.