Moorf
16th May 2008, 10:17 PM
I saw this website advertised during a programme on UKTV this evening... thought some might find it helpful.
http://www.movemypension.co.nz/
http://www.movemypension.co.nz/
CJ22
17th May 2008, 10:47 AM
Good spot!
Note, these guys charge $300 for the consultation. Having never really done much in this area, not sure if that's a reaasonable rate or not. They obviously also take a percentage of the transferred money.
Note, these guys charge $300 for the consultation. Having never really done much in this area, not sure if that's a reaasonable rate or not. They obviously also take a percentage of the transferred money.
gonzo
17th May 2008, 04:26 PM
Hi there,
Just my point of view but I believe anyone considering using these transfer companies should investigate whether they could save themselves a lot of money by DIY. All schemes in the UK will provide transfer values as well as an up to date statement of expected benefits on request. It is really no more than an exercise in administration and getting paperwork in order. I believe anyone who has successfully managed the immigration process to NZ should have no problem in making the required arrangements.
If you are determined to use one of these transfer specialists make sure you negotiate very hard on the commission they charge and ensure they fully disclose all payments that they will receive. Remember that once done it is effectively impossible to reverse.
For many people in qualifying UK pension schemes there really is no need to transfer as it provides a very tax efficient basis of saving and in addition having money outside NZ is a perfect way of reducing investment risk and increasing the spread of investments that you own. The spread of investments in a typical "balanced" UK pension scheme may also be difficult to replicate in a tax efficient manner in NZ.
Just my point of view but I believe anyone considering using these transfer companies should investigate whether they could save themselves a lot of money by DIY. All schemes in the UK will provide transfer values as well as an up to date statement of expected benefits on request. It is really no more than an exercise in administration and getting paperwork in order. I believe anyone who has successfully managed the immigration process to NZ should have no problem in making the required arrangements.
If you are determined to use one of these transfer specialists make sure you negotiate very hard on the commission they charge and ensure they fully disclose all payments that they will receive. Remember that once done it is effectively impossible to reverse.
For many people in qualifying UK pension schemes there really is no need to transfer as it provides a very tax efficient basis of saving and in addition having money outside NZ is a perfect way of reducing investment risk and increasing the spread of investments that you own. The spread of investments in a typical "balanced" UK pension scheme may also be difficult to replicate in a tax efficient manner in NZ.
incredible hulse
17th May 2008, 06:22 PM
I've heard that after being an NZ resident for 3 years you are liable to tax on your UK based pension. I don't know if this is 100% accurate but it would be the only reason I would bring my UK pension over now (as soon as it becomes an NZ scheme it gets taxed)
CJ22
18th May 2008, 04:58 AM
I'm more interested in looking at ways of releasing the capital in the stupid things. They're of too little value to do much for me in my retirement. One of mine is slowly losing money so I'd have to transfer it into a larger pension anyway, just to stop the bleed. A property investment NOW would do me much more good. If I could unlock some of the funds in them, that'd suit me more. In any case, I'm not INTO finances, so I don't really want to spend my time tracking over-seas pensions - I'd rather simplify it, munge them all together and have one simple pension.
Good points about the cost of getting somebody to do it for you though. To be honest, I wouldn't know the first thing about doing it myself.
Good points about the cost of getting somebody to do it for you though. To be honest, I wouldn't know the first thing about doing it myself.
incredible hulse
18th May 2008, 07:27 AM
You can unlock some of the funds once transferred over to NZ and been resident for some time (think it's 4 or 5 years). That said a property investment over here now maybe a way to bleed money quicker
StevieD
18th May 2008, 08:01 AM
Money, the road to so much heartache sigh!
Each to their own, property is a bit of a gamble like most things in life though.
Each to their own, property is a bit of a gamble like most things in life though.
CJ22
19th May 2008, 05:28 AM
You can unlock some of the funds once transferred over to NZ and been resident for some time (think it's 4 or 5 years). That said a property investment over here now maybe a way to bleed money quicker
Agreed. We were thinking more in 2 or 3 years time when it's bottomed-out a bit. But released capital now wouldn't be too bad, at NZ's interest rates!
Each to their own, property is a bit of a gamble like most things in life though.
Weel yeah, but you also get to live in it :) I wasn't thinking in terms of starting a property empiure, I was thinking in terms of buying a house to live in :laugh
Agreed. We were thinking more in 2 or 3 years time when it's bottomed-out a bit. But released capital now wouldn't be too bad, at NZ's interest rates!
Each to their own, property is a bit of a gamble like most things in life though.
Weel yeah, but you also get to live in it :) I wasn't thinking in terms of starting a property empiure, I was thinking in terms of buying a house to live in :laugh
katandbob
19th May 2008, 06:37 AM
do you have to pay tax on cashing them in?
incredible hulse
19th May 2008, 09:05 AM
do you have to pay tax on cashing them in?
I don't think so. Pensions at maturity in NZ are tax free (they tax on the way in and then yearly on growth). I thought the ideal thing to do would be to keep in the UK where it is tax free when in the pension and then move over 4-5 years before you want to access it - this was our plan until we heard that NZ can start taxing your UK plan after being a resident in NZ for 3 years.
I don't think so. Pensions at maturity in NZ are tax free (they tax on the way in and then yearly on growth). I thought the ideal thing to do would be to keep in the UK where it is tax free when in the pension and then move over 4-5 years before you want to access it - this was our plan until we heard that NZ can start taxing your UK plan after being a resident in NZ for 3 years.
Tia Maria
19th May 2008, 09:15 AM
I don't think so. Pensions at maturity in NZ are tax free (they tax on the way in and then yearly on growth). I thought the ideal thing to do would be to keep in the UK where it is tax free when in the pension and then move over 4-5 years before you want to access it - this was our plan until we heard that NZ can start taxing your UK plan after being a resident in NZ for 3 years.
We were told something similar about the 3 year rule, at a seminar before we left the UK a couple of years ago. But a UK/NZ money adviser that we have spoken to in NZ since, didn't seem to know anything about it.
At the seminar they were basically extolling the virtues of bringing it over (exchange rate was about 2.8 then), and being able to cash some in and invest in property or a better performing fund.
However, this was before they bought in the rule about foreign investments being tax free for x amount of years (we missed out on that one, along with missing out on the 3 year citizenship), before the exchange rate went to 2.5 and before the NZ property market became so uncertain.
Perhaps James1077 might know, he seems to know a bit about tax....
We've been here about 2.5years now, so we could do with a definitive answer also, perhaps I should email someone, any idea which department I should contact?
Cheers
Tia
We were told something similar about the 3 year rule, at a seminar before we left the UK a couple of years ago. But a UK/NZ money adviser that we have spoken to in NZ since, didn't seem to know anything about it.
At the seminar they were basically extolling the virtues of bringing it over (exchange rate was about 2.8 then), and being able to cash some in and invest in property or a better performing fund.
However, this was before they bought in the rule about foreign investments being tax free for x amount of years (we missed out on that one, along with missing out on the 3 year citizenship), before the exchange rate went to 2.5 and before the NZ property market became so uncertain.
Perhaps James1077 might know, he seems to know a bit about tax....
We've been here about 2.5years now, so we could do with a definitive answer also, perhaps I should email someone, any idea which department I should contact?
Cheers
Tia
willsken
25th May 2008, 01:55 PM
Tia, did you talk to anyone yet? We are looking into it at the moment. I'll post any information I find out.
Tia Maria
25th May 2008, 02:24 PM
No, not yet - its on my to-do list!
I was going to contact the tax department directly, might get a chance on Tuesday - if I'm not paying Xsketch! :D
Cheers
Tia
I was going to contact the tax department directly, might get a chance on Tuesday - if I'm not paying Xsketch! :D
Cheers
Tia
willsken
25th May 2008, 05:44 PM
:laugh That's why, as a rule, OH doesn't allow himself to play games on the PS. He says he gets too addicted. Mind you, he allowed himself to start a game on Friday night and apart from going off to play football on Saturday, I haven't seen him all weekend! :roll :roll Oh well, at least it's a game him and youngest son play together.....great father/son bonding I'm sure! ;)
gonzo
25th May 2008, 10:22 PM
Hi there,
Check out this link.
http://www.ird.govt.nz/resources/file/ebe280421310764/ir257.pdf
From my understanding if you are in a qualifying scheme, there is no tax payable in NZ until the scheme starts to pay. Pages 6 & 7 of the guide are the most relevant. You can check with IRD if you have a qualifying pension scheme (QFPS)
As the literature points out this is different from the foreign investment fund rules, where from my understanding tax needs to be paid after the amnesty period expires.
Check out this link.
http://www.ird.govt.nz/resources/file/ebe280421310764/ir257.pdf
From my understanding if you are in a qualifying scheme, there is no tax payable in NZ until the scheme starts to pay. Pages 6 & 7 of the guide are the most relevant. You can check with IRD if you have a qualifying pension scheme (QFPS)
As the literature points out this is different from the foreign investment fund rules, where from my understanding tax needs to be paid after the amnesty period expires.
Avalon
11th June 2008, 04:32 PM
If anyone is still looking at pension transfers:
I have just had a really lovely chat with a lady called Alison at Lyfords
http://www.uk-pension-transfer.co.nz/
Who do pension transfers.
She was incredibly helpful, and happy to answer all my questions without me having to make appointments, speak to a specific person or put my questions in writing.
I was impressed: so if anyone is looking at transfers - then I would recommend looking at Lyfords. Especailly as I was not overly impressed with Britannia - who did our tansfers for us. There would be a charge for transfers - but it is negotiable and depends on the amount of transfer.
Tax On Withdrawals.
If you withdraw any funds from the NZ pension within the first 5 years after transfer - the fund provider has to inform the UK Govt than you have done so. The UK Govt can then tax you @ upto 55%.:wah
After the first 5 years, the fund provider does not have to tell the UK Govt, and then its up to the Fund rules whether you can take any cash out.
At this point Im very very happy that I moved my pension before the rules change.:raebanana
I have just had a really lovely chat with a lady called Alison at Lyfords
http://www.uk-pension-transfer.co.nz/
Who do pension transfers.
She was incredibly helpful, and happy to answer all my questions without me having to make appointments, speak to a specific person or put my questions in writing.
I was impressed: so if anyone is looking at transfers - then I would recommend looking at Lyfords. Especailly as I was not overly impressed with Britannia - who did our tansfers for us. There would be a charge for transfers - but it is negotiable and depends on the amount of transfer.
Tax On Withdrawals.
If you withdraw any funds from the NZ pension within the first 5 years after transfer - the fund provider has to inform the UK Govt than you have done so. The UK Govt can then tax you @ upto 55%.:wah
After the first 5 years, the fund provider does not have to tell the UK Govt, and then its up to the Fund rules whether you can take any cash out.
At this point Im very very happy that I moved my pension before the rules change.:raebanana
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