UK Pension Transfer Service
Following the changes in 2015 to bringing a UK pension over to Australia, many have been left unsure if a UK pension transfer to Australia is possible. We can confirm this is still an option for British expatriates and Australians who have worked in the UK. We would encourage you speak with our referral partner bdhSterling who specialise in UK Pension Transfers to Australia.
With dually licensed advisers in both the UK and Australia, bdhSterling are perfectly positioned to provide UK pension solutions and continuous advice no matter what age you are.
It is vital that we can provide you with dually licensed advice as current pension transfer legislation will only allow pension transfer to Australia once you have attained age 55.
This means that for established Australian residents, under the age of 55, who are existing members of UK pensions, we can work with you to include your UK pension within your overall financial planning.
Depending on your age bdhSterling can:
Under 55 years old
- Assess suitability of your current UK pension arrangement.
- Manage funds within your UK pension in either UK sterling investments or Australian Dollar investments.
- Plan a strategy for future transfers, within the Australian Non-Concessional Contribution cap (NCCC) limit, for when you reach 55.
Over 55 years old
- Establish a Self-Managed superfund, for over 55’s, and attain QROPS (Qualifying Recognised Overseas Pension) status, to allow UK pension funds to be received.
- Plan and implement a strategy to transfer from the UK within the Australian Non-Concessional Contribution cap (NCCC) limit.
- Calculate the Applicable Fund Earnings (AFE) or “the growth” on any UK pension funds and implement a transfer strategy to minimize the tax, imposed by the ATO (Australian Tax Office).
- Manage any residual funds, held in UK pensions, until the next transfer to Australia can take place.
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:
- 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 most take 3 months.
What if I already have an Australian SMSF?
If a transfer to an Australian SMSF is recommended 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.
DISCLAIMER: This information is necessarily general and has not been prepared with reference to your specific objectives, financial situation or needs. UK Pension Transfers Australia 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 us or associated companies from this site.