UK Pension Transfers to Australia’s Service
There are two strategies available for transferring you UK pension fund to Australia. There are mainly determined by your age and pension funds balance. The two options area Direct Transfer or Indirect Transfer Service.
The Direct Transfer Service requires you to be 55 years old and have a QROPS Australian Self-Managed Superannuation Fund (SMSF).
With the Indirect Strategy you will need to be under 55 years old and would require an interim fund in UK or NZ.
The Australian Taxation Office (ATO) allows a 6-month tax-free window from the date of your Australian residency, where a UK pension fund can be transferred to a local super fund without suffering a tax liability. If you miss this 6 month window you will only pay tax on the growth portion of your fund since coming to Australia. Fortunately, profits paid from a taxed super fund (either as a lump sum or as weekly income) are tax-free for people aged 60 +. This also includes pension funds transferred to an Australian Self-Managed Super Fund.
Should I leave my UK Pension in the UK system?
Leaving your pension funds back in the UK may have a detrimental long term effect on your available retirement savings i.e.
- 1. As interest rates increase in the UK the value of your Defined Benefit Scheme can actually decrease!
- 2. Reducing tax liabilities when your pension is eventually transferred to Australia.
- 3. You funds may not be in an up to date risk profile that matches your current financial investment strategy.
- 4. Increased administration fees due to having assets in various funds.
- 5. Foreign exchange fluctuations, if not in control at time of transfer.
How can I feel confident that transferring my funds to Australia is right for my personal situation, and how do we begin the process?
UK Pensions Transfers Australia will apply on your behalf for a pension forecast report from your UK based pension fund. This will enable you to make an informed decision about transferring. At this point you are under no obligation to proceed with what we offer and have incurred no costs .If you decide to proceed with a transfer to Australia we may be required to obtain a bespoke Pension Transfer Analysis Report (PTAR) from our licenced UK based advisor's whom specialises in UK Pension Transfer Advice, the (PTAR) requirement will be determined by (a) the amount to be transferred. (b) The type of UK Pension Fund you are transferring from. If a PTAR (UK Report) is required and subsequently a pension transfer is recommended and you wish to proceed with transfer we will also be required to supply you with an Australian document called a Statement of Advice (SOA) which integrates with the UK’s Advice (The PTAR) and will outline a combined recommendation on transfer strategy.
How long will the transfer take?
Will depend on a few factors like the choice of funds destination, your UK Funds cooperation, and the time taken to get any government legislation documents in place, however on average mos take 3 months.
What if I already have an Australian SMSF?
If a transfer to an Australian SMSF is recommended to you and you already have your SMSF established then that’s a good start, but we will have to take the necessary steps to get your Australian SMSF QROPS qualified before any transfer can proceed.
If you would like to make an informed decision.
You can start things moving by filling in you details on our Contacts page along with any further questions you may have about our services. You can also request a printed info pack to be posted and or book an obligation free office, phone or skype consultation.Get Your Free Uk Pension Transfer Report
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DISCLAIMER: This information is necessarily general and has not been prepared with reference to your specific objectives, financial situation or needs. Superannuation Recall Consultants do not hold an Australian Financial Services Licence and recommend that you should seek professional advice from a trusted financial adviser before making any decision regarding the services offered by SRC or associated companies from this site.