Whilst you used to be able transfer pensions into KiwiSaver, this is no longer possible. There are a list of approved “QROPS” (qualifying recognised overseas pension schemes) providers approved by HMRC, and these are the only options for a pension transfer if you want to avoid a tax charge in New Zealand.

It’s actually very easy to transfer your UK pension to NZ and we are able to help with the process from start to finish. We work with a QROPS provider and make the process as simple as possible for you.

• Your money will be in the same country as you are
• You can now access your UK pension money in full from the age of 55 once it has been transferred
• There is no inheritance tax in New Zealand currently, unlike the UK
• You have more control and say over how your money is invested, and have access to an adviser should you have any questions or concerns
• If you are transferring your pension to NZ within 4 years of emigrating, there may be no NZ tax to pay on the transfer as you may qualify as a “transitional resident”. After this, there is a sliding scale for tax, so the longer you leave it, the more tax you will have to pay on the value of your transferred pension.

If you have a “final salary” or “defined benefit” scheme in the UK, then you may need to obtain financial advice in the UK before you are able to make the transfer. We can assist with this process (and Danielle has been through it all personally so can speak from experience!).

For most “defined contribution” pension schemes you will not need to obtain advice in the UK.

The first step in transferring your UK pension to New Zealand is to collect information on your UK pension schemes. We will need to know:

• the provider
• the membership / policy number
• the type of scheme
• your National Insurance (NI) number

Once we have this, we will get you to sign a letter authorising us to obtain more information from the UK pension provider. This can take a couple of weeks to arrive.

We then arrange to meet with you to go through all the information, and discuss what investment options you have. We will make an investment recommendation based on your risk profile, age and plans for the money. If required, we can also engage Bright Wild Thomas & Lee, the accounting firm we work alongside, to provide tax advice on the transfer.

Once you are happy with our advice and the transfer process, we will go ahead and arrange the transfer on your behalf. You will be responsible for reporting on and paying and NZ tax relating to the transfer.

We then have regular catch ups with you to discuss the performance of the investments, ensure the risk you are taking is appropriate, and process any withdrawal requests when these are possible.

Contact us for more information or to start the process of transferring your UK pension to NZ.