Pension Transfer To New Zealand
Save money transferring pensions abroad with a pension transfer specialist such as LifePlus. Receive tax reliefs, paying lower tax on income drawn with a QROPS today.
Under the law of the United
Kingdom, any person that has pension rights in the country, regardless
of their nationality, has the ability to transfer their entire UK retirement
account to a new Overseas Pension Scheme.
In order for an individual to be eligible for this
transfer, the pension scheme must be accepted by the government of the
UK as a permitted arrangement. These permitted arrangements are called
Qualifying Recognized Overseas Pension Schemes (QROPS).
Only those UK pension rights can be transferred to
an Overseas Pension Scheme that has received prior approval from the
Why Transfer Pensions?
UK pension holders that live
in other countries are still required to pay taxes on their pension
income provided that their pension amount is kept within the UK.
If you are considering living or moving abroad, then
you should talk to your bank or pension office about transferring the
pension income you have to a QROPS account. Essentially, a QROPS is
defined as an offshore pension scheme. This scheme has been approved
and accepted by HM Customs and Revenue. This account is not only cost
effective but also tax efficient.
Leaving your pension income idly sitting in the UK
is a big mistake. PensionsPlus can help review your current pension
plan and provide advice on the feasibility of getting your pension transferred.
Is it right for me to transfer my pension?
Every situation a person goes
through is different. There are a number of factors that ultimately
determine whether you should transfer your pension income or not. The
most important determining factors are:
Pension Type: Almost all of
the pension plans in the UK can be easily transferred to a QROPS. However,
plans that you are currently taking pension from are not transferrable.
Residency Status: Place of living,
whether you are going to retire overseas, come back to the UK or are
How close you are to retiring:
In certain cases, the number of benefits obtained from transferring
your pension plan to a QROPS may depend on the proximity to your retirement.
PensionsPlus can easily help you come up with a flexible
pension plan that is catered to your needs and circumstances for when
The current retirement age within the UK, according
to law is 55 years. The retirement age will most probably apply to the
pension plan and must be met before any benefits can be reaped. However,
a QROPS is different. Compared to an average UK pension scheme, it offers
a great amount of flexibility, tax benefits, larger income chances and
freedom of investment.
A QROPS can be used in order to obtain transfer values
from a registered pension scheme in the UK. This includes the Protected
Rights Funds. Individuals that are currently receiving benefits from
using a Self-Invested Personal Pension Scheme or SIPP may also have
this scenario applicable to them.
Most QROPS are not taxable at the source. The amount
of tax applicable to any type of income purely depends on where you
live and the tax laws in that region. To check out a list of approved
QROPS, you can visit the HMRC’s website online.
QROPS are not for everyone. Before applying for QROPS,
it is advised that expert council and assistance should be observed.
Also, state pensions are not transferrable.
Below are a few of the differences that exist between
a QROPS and a traditional UK pension plan:
- QROPS: The taxable amount can significantly be reduced.
In certain cases, the income tax amount can be zero.
- UK Pension: Any income that is taken from a pension
plan in the UK is taxable at its source.
Lump Sum Cash Amount
- QROPS: Offers a greater tax-free lump sum cash amount.
- UK Pension: The lump sum cash amount is limited to
only 25% (maximum) of the total value on your pension plan. For occupational
pension plans, the tax-free lump sum cash amount is determined through
a formula taking into consideration your service and salary.
- QROPS: There is no type of UK inheritance tax charged
upon a death.
- UK Pension: Any type of asset that is left to your
beneficiaries upon your death (except the spouse) is subject to the
current 40% UK inheritance tax charge.
- QROPS: The total amount of accumulated pension is
passed down to your beneficiary’s tax free and in full. There is no amount that needs
to be paid to the tax man or the pension agency.
- UK Pension: In the event of your death, your spouse
is only eligible to receive 2/3 of the total pension amount you had
accumulated. Essentially, your death will result in the death of your
Benefits and Income
- QROPS: You are able to alter your income, receive
an income of your choosing, change the currency of the income and receive
capital amounts at any stage of the scheme. Of course, there are a few
rules that are applicable to this program.
- UK Pension: You are confined to the currency and
amount of income you have received.
- QROPS: You are able to receive a greater amount of
freedom in your investment choices since you have complete control of
your investment options and the investment currency. Investments in
fixed deposit, total diversification and offshore/onshore accounts are
- UK Pension: You do not have any control over your
pension fund. You are restricted to the choice of funds as specified
by your outsourcing fund manager or insurance company.
- QROPS: You are able to receive complete protection
from your business partners, creditors and ex-spouses.
- UK Pension: You do not have any type of confidentiality.
Protection from Creditors
- QROPS: Depending on your jurisdiction, protection
from future creditors is possible in most cases.
- UK Pension: You do not have any type of protection
Our policy clearly states that we must provide any
and all possible guidance on a QROPS transfer that is defined within
the regulations and laws of QROPS in the United Kingdom.
QROPS regulations in the UK provide the following
- Lawfully avoid any type of:
- Inheritance tax on a QROPS fund account within the
- Income tax on a QROPS fund account within the UK
- Chose a number of beneficiary groups for your QROPS
fund account. This vast array of choice is not available to a person
with a traditional UK pension plan.
- Receive up to 30% of the total QROPS fund account
with a tax-free lump sum cash amount.
have been away from the UK for a full 5 years, you are eligible to enjoy
all these benefits. However, these are 5 tax years before the QROPS
transfer. Even if you are absent, it still counts.
there are clearly some great benefits to be had, there are also some
complicated plans in place; often expensive plans. These can be more
tempting than many of the others provided by the policies of the UK
work with true providers of QROPS. We will not work with them if they
do not embody the spirit of QROPS policies and regulations and do not
adhere to their standards.
that this high level of professionalism is what our clients really want;
it is what they require. This helps both us and our clients achieve