We are able to help facilitate you to be able to bring your UK and Australian Pensions to New Zealand.

Rules and regulations on the transfer of these pensions have changed significantly over the last few years and there are many things to take into consideration when looking at bringing over the Pension.

Australian Pension Transfer

If you have lived in Australia and have paid into their superannuation scheme and have moved back to New Zealand for good, then you may be eligible to bring the funds over into KiwiSaver.

When doing so, there are factors to consider such as:

  • What scheme are you with
  • Do they allow you to bring the funds to New Zealand
  • Are there any benefits that the scheme in Australia has that you would lose if you bought to New Zealand
  • You need to be back in NZ to get the ball rolling to move the Australian pension.
  • You must be in a KiwiSaver that allows Australian pensions transfers.

So the decision is not as straight forward as you may think and it is worth talking to us, so that we point out the areas to look at, before making the move.

There are many things to consider – so I recommend having a chat to us before you do anything.

If you do not have a KiwiSaver scheme at the moment or want to have a chat, contact us to find out more.

UK Pension Transfers

There have been a number of developments in the UK Pension transfer space:

Rules to when you are able to take your money out of the scheme:

  • 70% of  the UK pension (gross amount) is designated for an Income for Life(payable from age 55 onwards)
  • The balance (& any return on the whole transfer) is accessible by the client as a lump sum at age 55

The Government has had a crackdown of people taking all their pension funds at age 55 and have now imposed the above restrictions.

So this means that regardless of any previous rules, you are at age 55 able to access 30% of the fund and then after this, you will get the remainder as an income payable after age 55.

Tax rule changes

More importantly, you may not be aware, but there have been a number of changes to the tax rules regarding the UK Pension transfers which take effect on 1st April 2014.

Background

The Inland Revenue (IR) has introduced a new tax regime for foreign pension holders, aiming to simplify the complicated rules on taxation of foreign pensions and reduce non-compliance with existing tax rules.

In general, the new rules state that the longer someone has been living in New Zealand the more tax they may have to pay when they either draw a lump sum or transfer their pension here. Ultimately, if they have been in New Zealand for 29 years or more, up to 100% of the value of a UK pension could be treated as income in a client’s tax return and taxed at their marginal tax rate.

There are situations where you have not been a New Zealand resident for 4 years, and then you may not have to pay tax on the pension that you bring over.

The rules are complicated and the decision to bring the pension to NZ or not does require some thought.