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pension transfer from uk


Guest irene stewart

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Guest irene stewart

We are hoping to join our daughter in Perth next year and would like to know what is the best way to receive our private and state pensions from the UK is it better to buy a pension in the UK or Australia?

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  • 7 months later...
Guest irene stewart
Hi

I think you would be better off organising your pensions before you leave the UK

Why is it better as transferring to Australia you dont lose your pension if you die its then goes to next of kin?

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Guest Geoff&Cheryl
We are hoping to join our daughter in Perth next year and would like to know what is the best way to receive our private and state pensions from the UK is it better to buy a pension in the UK or Australia?

 

We are here on 410 retirement visas - I transfered my small private pension 'pot' to an Australian Superannuation Fund (it remains mine rather than being lost to an annuity in UK). I keep a Nationwide account in UK and have my state pension paid directly to that and withdraw from the hole in the wall as and when I need it.

 

Depending on your own circumstances, and if you are not already getting a pension then maybe you should get professional advice (there is someone on the Poms in Oz site) before you leave UK. If you already are drawing your pensions and already have an annuity there is nothing you can do about that particular one. The state pension can be paid into any account, either in UK or Australia.

 

Hope this helps.

 

Cheryl

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Guest tullamore2012
We are hoping to join our daughter in Perth next year and would like to know what is the best way to receive our private and state pensions from the UK is it better to buy a pension in the UK or Australia?

There is no quick answer to this post,a lot depends on your financial circumstances .your ages ,your existing pension arrangements etc Pensions are quit portable between UK and Australia.I worked in this field in the past so if you wish to receive further advise please contact me with some more details.There will be no charge for this service

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Guest irene stewart

we have applied for a permanent retirement visa and will have aprivate pension which is not started yet 2 work pensions which are not started and 1 state pension thats started to bring over

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Guest irene stewart
We are here on 410 retirement visas - I transfered my small private pension 'pot' to an Australian Superannuation Fund (it remains mine rather than being lost to an annuity in UK). I keep a Nationwide account in UK and have my state pension paid directly to that and withdraw from the hole in the wall as and when I need it.

 

Depending on your own circumstances, and if you are not already getting a pension then maybe you should get professional advice (there is someone on the Poms in Oz site) before you leave UK. If you already are drawing your pensions and already have an annuity there is nothing you can do about that particular one. The state pension can be paid into any account, either in UK or Australia.

 

Hope this helps.

 

Cheryl

getting a pension in uk and one in australia does that mean you have to pay tax in both uk and australia

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getting a pension in uk and one in australia does that mean you have to pay tax in both uk and australia

 

My understanding is that you pay tax where you are classed as resident. This is standard. If you are coming here on a retirement visa, and stay for the majority of the year or permanently, then you would pay Aussie tax because you would be resident.

 

If you then continue to get your state pension paid into a UK bank account you can fill in a form in the UK, cannot remember the name of form or the ref number but it is a common process ask your bank, that stops tax being taken from any interest. Then when you fill in your tax return in Australia you declare all income on that including any UK cash. That is an option. If you need the money here options for getting at it include, transfering it via an online bank account to your Aussie account, use an ATM here to withdraw or leave it and save it for any return holidays or visits.

 

Of course as a previous poster says it will all depend on your own personal circumstances. For example there are a lot of retirees in Oz on your type of visa who only stay here a portion of the year and choose other options re their tax.

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Guest methuselah

Mum & Dad are coming on a contributory visa. They have just their UK old age pension (which isn't taxed) plus a very very small private pension, (not taxed either). Does anyone know - will they have to pay tax on these pensions once they are permanently resident here? I understand that once here the pensions will never increase so it doesn't seem fair to have them taxed as well - the cost of living will still go up! Secondly, if they sell their UK house, buy one here, and invest the rest here so they can use the interest to supplement their pension, will this interest get taxed too? Will the capital get taxed? I contacted the tax office in Australia (ATO) but they couldn't answer a single question I put to them! Anyone out there know?

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Guest migration angel

Hi Irene,

 

You really need to get the best professional advice possible on this.

We are having a nightmare trying to get my husband's NHS pension across. Long story.

Here is a link to a firm who understand both UK and Aussie systems based in Perth. Wish we'd used them.

www.uhyhainesnorton.com.au

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Mum & Dad are coming on a contributory visa. They have just their UK old age pension (which isn't taxed) plus a very very small private pension, (not taxed either). Does anyone know - will they have to pay tax on these pensions once they are permanently resident here? I understand that once here the pensions will never increase so it doesn't seem fair to have them taxed as well - the cost of living will still go up! Secondly, if they sell their UK house, buy one here, and invest the rest here so they can use the interest to supplement their pension, will this interest get taxed too? Will the capital get taxed? I contacted the tax office in Australia (ATO) but they couldn't answer a single question I put to them! Anyone out there know?

 

Look I am not tax expert and I am sure that there is plenty of advice is available both within the UK and once they arrive here however basic rule is that if you have an income, and you are above the tax threshold, then you pay tax on the balance of any "income". For example you can earn $6000 here before you need to pay tax and then all other income is taxed at specific rates depending on the amounts involved.

All types of income are listed on the ATO website and bank interest is one of them. Bottom line we all have to pay tax. The key is to minimise your tax liability and that is where, depending on how much capital and income they have or acquire, you need advice. There are all sorts of ways to minimise your tax due and all legal. Paying into a superannuation fund here is certainly one of the ways. Handing it to inlaws as gifts is another. There are a multitude of them.

The problem you face is that the ATO will be reluctant to answer because it is all hypothetical at the moment. Go to an Australian tax specialist in the UK.

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  • 2 weeks later...
Guest pat and mike

are you actually drawing pensions yet? it's MUCH better to transfer - it becomes YOUR money, not a pension funds. when you die your unused pension passes to whoever you nominate rather than die with you. you can start to draw some of it from 55 so you can go part time to wind down, and after 60 it's all tax free. when you transfer from uk you fet all your contributions PLUS all your employers too. if you want a recommendation of a fin services co that odes it, let me know

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Guest pat and mike

they won't get taxed. if they invest their surplus funds in a private pension (called a super fund here) they won't get taxed and they can decide each year what they want to draw on a regular basis and also any lump sums they may wish to use (eg for a new car). besides any balance left on death goes to the nearest relative/nominated person...and there's no inheritance tax here (yet...)

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Hi there.

You should seek advice from an Adviser who has experience in retirement planning in both the UK & Australia.

There are definitely advantages to havings your retirement monies in an Australian Superannuation fund (known as Pension in UK).

However there are lots of factors that will need to be considered and it also depends on individual circumstances. If the right advice is not taken there can be huge implications.

It also depends on the type of UK Pension people have as to whether a transfer is in their best interests. Bear in mind also that current exchange rates are very poor to brings GBP across.

Also with the markets being in such a bad way some market linked Pensions may have transfer reductions in place, known as Market Value reductions (MVR's) to protect investors remaining in the fund.

The closer to retirement you get the more difficult the decision will be.

The above all relates to Pensions in accumulation. Once Pensions are in payment the fund cannot be transferred over, nor can the state Pension, only the payments from these.

Regards

Andy

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  • 3 months later...
Guest jlockwood

Hi the main thing is to look into the pension transfer - do we don't we transfer situation before you leave the UK and decide to put your pension in payment. I work for UHY Haines Nortonn (www.ukpensiontransfer.com.au) and we offer a free transfer report so that you can look at the pros and cons of transferring your pension. You cannot alter anything once your pension is in payment in the UK. If you want to ask us any questions we are here to help

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Guest jlockwood

just a quick note you cannot transfer your UK State Pension but you can top up the payments if you are retiring after next April and have under 30 years credit.

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Guest Colette Pieniazek

Hi There

 

We are a firnm of charteted accounts in Perth and being ex migrants ourself can advise you on both UK and Australian pension and tax issues before and after you migrate the lady you need to email for help is Colleen Handy on chandy@uhyhn.com.au

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Guest jlockwood

Hi I have a message that you have replied to me but there is nothing I can find except a link to Global pension transfers - are you from Oldham my colleague is from there do you know Colette Chambers? That was her maiden name.

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Guest methuselah

We transferred a pension from the UK to a pension fund here, a self managed superannuation fund. We were told that you had to put your pension into one of these funds, whether managed by yourself or by an accountant. Ours consists of pension money which was put down on a house for investment purposes. What nobody told us was that it costs more to have the fund audited than what it's making us in gains! It would be astronomically more if we weren't doing the paperwork ourselves, however, yesterday we were told that we won't even be able to do that in future - the fund will have to meet all sorts of new formalities and certifications which can only be done by an accountant. We were told that people are paying up to $16K a year just to run the damned Fund. Given that we've lost money anyway on the property because of the recession (the one we live in plus the investment one) we are seriously out of pocket. Now we want to return to the UK and want rid of this money-sucking Fund. How do we do this? Can the money be transferred to an investment property in the UK where one of these Funds would not be required? If we don't get shot of the thing we're going to be broke long before property goes up in value enough to cover the fees.

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Guest jlockwood

Hi I work for a firm of accountants UHY Haines Norton who specialise in pension transfers - Self Managed Superannuation funds do cost a lot to run we do not advise all our client to put their UK pension transfers into a Self Managed Superannuation fund.

 

Colleen Handy is a Taxation and Superannuation Consultant with this firm. She has worked in the UK as a Tax Specialist and understands both Australian and UK legislation. She is on holiday this week but you can email her your question to chandy@uhyhn.com.au and she will be willing to help you.

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Guest julie7

i transferred my uk pension before we left, it didnt cost me anything in fees, it was pretty painless, ive noticed here that some companies charge you a commission and basically want you to sign up with them.

hope this helps

julie

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  • 1 month later...

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