Frequently Asked Questions
Do I have to transfer my pension?
No
Should I transfer my pension?
This will be a decision that is based on your UK pensions and individual circumstances
We provide an independent, full analysis of your UK pension entitlement to enable you to make an informed decision.
Is there any time scale for deciding to transfer?
No – but any “Occupational” scheme should be transferred at least 12 months before it is due to come into payment.
What pension(s) can be transferred?
Virtually any UK authorised scheme – including some that are already making “income” payments.
Will I have any NZ tax liability if I don’t transfer?
No - not while there is no “income” (i.e. pension) being paid. However, all payments made from a pension held in the UK will be taxable as income in New Zealand.
Are there any UK Tax Issues to consider?
No – except when accessing funds before age 50.
Can I transfer the fund back to the UK?
No – there is no similar NZ legislation to allow this.
Must I have a NZ Superannuation plan?
Yes – it is a UK requirement that all transfers pass into such a plan.
How long is the transfer process?
The normal time span is between 3 – 6 months.
Our quickest transfer took just 4 weeks and the longest (so far) just over 6 months.
Can I do it myself?
Yes. But the process can be complex and if you get something wrong it might cost several thousands of pounds.
Will I be eligible for the NZ State Pension (NZ Superannuation)?
This will depend on how long you have been in NZ at State Retirement Age. Yes – if you have lived in NZ for over 10 years since age 20 and 5 of those are after the age of 50.
I have been told that I can withdraw some cash from the plan as soon as it is in NZ. Is this correct?
NO. Absolutely not.
This action would incur a UK tax liability of 55% of the sum withdrawn
Exception: if you are over age 50, you may be able to access 25% of the fund immediately.
When can I access the funds?
a) Under UK law – not until you are 50 (or 55 if after 6 April 2010). Any access before this will be subject to an “Unauthorised Withdrawal” charge. This is 40% of the amount withdrawn plus a surcharge of 15% i.e. 55%!
b) Under the current regulations the information above only applies for 5 complete (UK) Tax Years after you leave the UK. It is likely that – under NZ regulations – you could access part (or all) of the funds after this time – if no change to the UK regulations.
Are there any benefits to transferring?
Yes – there can be many but they tend to be individual to your personal attitudes and circumstances.
Full, independent review is advised.
What is QROPS?
Qualifying Recognised Overseas Pension Scheme – i
Introduced by the(UK) Pension Simplification rules in April ’06. It is a NZ Superannuation plan that has been accepted by HMRC as being receive able to transfers of UK pension schemes & plans.
Will my money be safe?
Yes – all funds are transferred from the UK provider directly to a NZ authorised approved Superannuation plan.
What are the NX Income Tax rates?
| NZ Income Tax rates (from 1 October 2008) | |
| Income | Tax rate |
| Up to $14,000 | 12.5% |
| $14,001 - $40,000 | 21% |
| $40,001 - $70,000 | 33% |
| $70,001 plus | 39% |
There are no “Personal Allowances” in New Zealand . All income, from all sources worldwide, is subject to taxation.
What are the NZ State Superannuation Payment amounts?
| NZ State Superannuation Payments (as at 1 April 2008) | |
| Weekly Payments | After Tax |
| Single living alone | $285.87 $14,865 P.a. (approx) |
| Single (sharing) | $263.88 $13,722 p.a. (approx) |
| Married, de facto or civil union couple (partner not included) | $439.80 $22,870 p.a. (approx) |
| Married, de facto or civil union couple (both partners qualify) | $209.68 (each) $21,807 p.a. (approx) |
| Married, de facto or civil union couple (only 1 partner qualifies) | $219.90 $11,435 p.a. (approx) |