Proposals for April 2015 on Pension Transfers from UK

During the recent Budget the UK Government proposed a ban of public sector pension transfers with effect from April 2015 (except in very limited circumstances). This is part of reforms announced by Chancellor George Osborne and the government announced they will also consider whether to ban all Final Salary to Money Purchase schemes.

If you are emigrating to Australia or New Zealand you can currently transfer your UK final salary pension transfer with you (including public sector pensions such as the NHS, Teacher's and Civil Service schemes) and there are many positive reasons why you might transfer.

One of the main attractions of either an OZ or NZ Superannuation scheme is it will allow pension benefits, both income and lump sums, to be paid tax-free at retirement. This is a major advantage to the alternative of having pension benefits paid from the UK scheme - as these benefits are assessed for tax in Australia or New Zealand.

There is also the issue of the exchange rates. A pension paid from a UK pension will be paid in sterling. This means that any regular income paid from the UK pension scheme would effectively fluctuate with the exchange rates with the Oz or Kiwi dollar. Completing a UK pension transfer to OZ or NZ eliminates the uncertainty of income levels in retirement, as the Oz/NZ superannuation will pay benefits in dollars.

Another point to compare is death benefits. If a retiree dies whilst receiving income from a UK scheme, there are usually limited widow's benefits available. If there is no spouse, there may be nothing for any beneficiaries. However, in an Oz/NZ superannuation scheme any remaining fund can be paid out as a lump sum to any beneficiary nominated.

Commissioning a FREE report from Pension Transfers will provide the facts you will need to make an informed decision on whether you would like to transfer the UK pension with you when you emigrate. With regulated offices in UK, New Zealand and Australia, we are well placed to provide the best advice for you when you decide to emigrate.

Click here to start the process of receiving your free report.