Am I eligible to transfer my UK Pension to NZ?
You may be eligible to transfer your UK Pension if you are:
- A returning New Zealand citizen
- A UK national who has migrated to New Zealand
- A non-UK national with UK Pension benefits who has migrated to New Zealand
HMRC does not require you to have emigrated permanently to New Zealand. Some schemes may, however, require a declaration that you have no intention of returning to live/retire in the United Kingdom.
Craigs Investment Partners’ UK Pension Transfer Service requires that, in order to utilise the service, a transferring client’s intention must be to reside and retire in New Zealand permanently.
Should I transfer my UK Pension scheme to NZ?
Every UK Pension is different and there are some instances where transferring your UK Pension to NZ is not necessarily in your best financial interests. However, there may be benefits for you – click here to learn more.
Should I transfer my UK Pension scheme to NZ, even if I think I may return to the UK to retire?
No - a decision to transfer is best made once you consider that you are firmly settled in New Zealand as once you have made the transfer to a New Zealand superannuation scheme you cannot transfer your funds back to your old UK Pension scheme.
Can my UK Pension be transferred directly into a nominated bank account or savings plan?
No - UK regulations require that UK Pension funds must be transferred to a registered and QROPS approved superannuation scheme.
What age can I access my pension funds in NZ?
HMRC are currently proposing to amend the rules surrounding QROPS transfers. More information on accessibility will be provided when the new rules are finalised.
Can I withdraw cash from my pension fund once it is in a NZ superannuation scheme?
Yes - subject to the minimum terms and conditions of your scheme and the QROPS rules prevailing at the time of a withdrawal from a QROPS scheme. HMRC are currently proposing to amend the rules surrounding QROPS transfers. More information on accessibility of funds will be provided when the new rules are finalised.
Upon attaining the age of entitlement to New Zealand superannuation, you may have access to your funds, without the requirement of purchasing an annuity. Any withdrawal made before the completion of 5 full tax years as a non UK tax resident may be subject to an unauthorised payment charge.
How long does it take to transfer my UK Pension?
The time to transfer can vary, but generally it takes between 3-6 months.
Can I transfer my UK Pension myself?
Yes, you can. However, this can be a cumbersome and complex process, so unless you have easy access to information, and understand the details, we recommend you seek advice. We offer clients a complimentary transfer service. This ensures you make an informed decision and makes the process easier for you.
Can I still transfer my UK Pension to NZ if I have started to draw income from it?
It may be possible to transfer a UK Pension where income is being received from an alternatively secured/unsecured pension such as an Income Drawdown Plan or Phased Retirement Plan. If you have already started to receive your UK Pension in the form of an annuity, you may not transfer your UK Pension to NZ.
Should I transfer my UK pension to a NZ superannuation scheme before I leave the UK?
No - it is not always in your best interests to transfer your UK Pension prior to leaving the UK.
What are the key benefits for transferring my UK Pension Fund to NZ?
To gain an understanding of some of the key benefits that may arise –
click here.
Will I be eligible for New Zealand Government superannuation payments?
You may be eligible for New Zealand Superannuation if you are over the age of 65 and:
- are a New Zealand citizen or permanent resident; or
- have lived in New Zealand for at least 10 years since you turned 20, and for at least 5 years since you turned 50.
Generally, if you are entitled to a New Zealand benefit or pension, you will be paid the difference between your New Zealand entitlement and the amount of your overseas state pension entitlement, if any. For further details contact Work and Income NZ (WINZ), phone 0800 552 002 or visit
www.winz.govt.nz. Further information is also contained in Form IR258 Overseas social security pensions, available from the Inland Revenue website
www.ird.govt.nz.
To obtain a forecast of your UK State Pension download form CA3638 from the HMR&C website www.hmrc.gov.uk.
What are the tax implications or issues associated with transfers?
If you retain your UK Pension and it pays a regular benefit to you, this is deemed income and you will need to pay tax on it in New Zealand unless you qualify for an exemption for “transitional residents”. See the Inland Revenue website www.ird.govt.nz.
If your funds are transferred to a NZ approved superannuation plan under current legislation withdrawals are tax paid funds.
What is QROPS?
This stands for Qualifying Recognised Overseas Pension Scheme (QROPS). It is a recognised overseas pension scheme that meets certain requirements laid down by the UK HMR&C (Her Majesty’s Revenue & Custom) to enable them to receive transferred funds from UK Pension funds.
In order to transfer your UK Pension fund, the NZ superannuation scheme you wish to transfer into must be QROPS registered. Any QROPS approved scheme is required and obligated to report back to HMRC for a specified period regarding any payments made to members. HMRC are reviewing the rules surrounding QROPS reporting and currently propose that the relevant reporting period will be 10 years from the date of transfer. Craigs Investment Partners’ superannuation scheme superSTART® is QROPS registered.
When is the UK Tax Year?
6 April through to 5 April each year.
Do you charge a fee for your pension transfer service?
No. We are an investment advisory firm, with a central goal to protect and grow the wealth of private clients. The gathering of information on your UK Pension scheme and helping you transfer this to our registered superannuation scheme is a complimentary service for our
Craigs Investment Partners clients.
Are there any other fees that I can expect to pay for the transfer of my UK Pension fund?
Yes – there may be charges imposed by your UK Pension provider or by the banks who process your transfer.
What are the Investment Options with Craigs Investment Partners' superannuation schemes?
Craigs Investment Partners has one of the more flexible registered superannuation schemes in NZ - superSTART®. This is a QROPS certified superannuation scheme.
Can I make regular contributions or lump sums toward my superannuation scheme in NZ?
Yes. With Craigs Investment Partners' superannuation scheme (superSTART®), you have the choice of, but are not required to make, both regular and/or lump sum contributions.
Can I change my investment portfolio if I’m not happy with my investment performance?
Yes – you can switch the direction of your investments at any time. Fees may apply.
Other useful websites
Disclaimer – Craigs Investment Partners is not a tax specialist and recommends you seek independent advice on tax related queries regarding your UK Pension transfer.