Here’s a fact that may surprise you. Up to 20 per cent of GBPensions’ clients aren’t British. The team also helps returning Kiwis and other expats who’ve lived and worked in the UK and have now decided to settle in New Zealand.
What are the UK pension transfer options for returning Kiwis?
New Zealanders who are coming home essentially have the same choices available for their UK pension as anyone else – be they British, French, American, South African, or any other nationality.
If they’re aged 54 or younger, their three basic options would be to:
- Leave their UK pension where it is until they turn 55 at the earliest.
- Transfer their UK pension to a NZ QROPS (Qualifying Recognised Pension Scheme).
- Move their UK pension to a SIPP (Self-Invested Personal Pension).*
And then withdraw their funds from age 55.
*It may also be worth mentioning that, to the very best of our knowledge, GBPensions is currently the only company in New Zealand to offer clients this third option.
If they’re aged 55 or older, they can either:
- Withdraw from the existing scheme, or
- Transfer to a QROPS and then withdraw the funds in NZ, or
- Transfer to a SIPP and then withdraw the funds.
Every client’s circumstances, needs and wants are always slightly different, so the choice they make will depend on any number of personal and financial factors. Naturally, the costs of transferring are a part of this, and GBPensions’ managing director, Tony Chamberlain, is keen to ensure that clients consider the bigger picture. “It’s not all about the ‘upfront’ cost,” he stresses. “It’s really important to also be aware of ongoing management fees because, in the long-term, these can add up and almost be like a silent drain on your investment. ‘Free to transfer’ absolutely does not mean ‘free of charge’.”