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UK Pension Transfer
At McKinley Plowman, our partnership with Pension Transfer Specialists makes it easy for UK migrants and returning expats to arrange Company or Personal Pension transfers.
Which funds can be transferred?
Almost all personal and company pension funds, including deferred benefits, AVC’s and preserved benefits can be transferred so long as:
- Your fund is not a Public Sector fund i.e. NHS, Teachers or Police Pension fund, as these funds can no longer be transferred.
- The funds haven’t started paying you an annual pension or annuity.
- The funds are transferred into a QROPS Australian superannuation fund, if available.
We cannot transfer the UK State Age Pension, but we can assist in enhancing your entitlement by making additional voluntary contributions.
Please note, all pension funds must be transferred to a Qualifying Recognised Overseas Pension Scheme in Australia which is approved by Her Majesty’s Revenue and Customs (HMRC).
What benefits will I receive if I transfer?
Overall, arranging a Pension transfer is a smart decision, as it helps you achieve a better retirement income for you and your family.
Some factors that should be considered before proceeding:
- You will pay no tax in retirement, however, if you leave your fund in the UK, it will be taxable in Australia, regardless of whether you transfer it to Australia or not.
- Once transferred to Australia, you can have tax free access to the entire fund as a lump sum or pension in retirement.
- Transfer and you will no longer be dependent on exchange rate fluctuations.
- Once transferred, your fund can continue to grow into your retirement and you have greater control over how it is invested.
- On death the entire balance can be passed to your spouse or dependants.
- Consolidation of your retirement benefits.
- There is no tax to pay if you transfer within the first six months of your residency. The longer you wait the more tax you will potentially pay.
- If you do not transfer your UK Company or Private pension fund, your UK pension will be taxable in Australia. Once your pension starts to pay you an annuity or annual pension, this cannot then be transferred. You will then be subject to exchange rate fluctuations.
What process can I expect?
- We will write to your UK fund provider to request your retirement information, transfer values, obtain the discharge documentation and prepare a report and tax analysis comparison on how your benefits will be treated if they remain in the UK against how they will be treated if transferred.
- A complimentary, no obligation consultation with your UK Pension Manager to discuss the transfer process and any concerns you may have.
- On your agreement, comprehensive financial advice will be provided to ensure your UK fund is transferred efficiently and within UK and Australian rules.
- The UK pension provider releases the funds to your Australian superannuation fund, if applicable.
- Once the funds have been received in Australia, (for those residents in Australia more than six months) we shall complete the ‘option to tax’ forms and send this to your Australian superannuation fund to pay the tax at the appropriate time.
- The balance of the funds after fees and charges are then invested by your financial advisor in accordance with your retirement investment strategy.