Whether you are a UK Expatriate or you are back living in Australia having spent time working in the UK, you may be wondering how you can transfer your UK Pension benefits to a suitable arrangement in Oz.
Transfer your UK Pension Benefits
What points should I consider if I want to transfer my UK Pension funds to Australia?
There are some points you need to consider in order to satisfy the criteria of a UK Pension transfer to Australia.
- You must be aged between 55 and 75 years
- You must meet the criteria of the ‘Work Test’. In summary, you must have been employed for at least 40 hours in a period of not more than 30 consecutive days during the financial year to pass this test.
- You can only transfer your UK Pension into Qualifying Recognised Overseas Pension (QROPS).
You may also be wondering what typical charges may apply upon transfer. Firstly, as long as you are resident in Australia, you would be exempt from the Overseas Transfer Charge of 25%. Some UK Pension providers do impose a charge upon transferring your funds out of their scheme and so this is a point you should always check.
What are the benefits of transferring my UK Pension Funds to Australia?
The first and most obvious benefit of moving your UK Pension funds to Australia would be to ensure that your retirement savings were housed in your country of residence. There are other benefits which you should also consider:
- There are tax advantages as if the transfer occurs within 6 months of becoming an Australian resident then the transfer of funds could be tax-free.
- From the age of 60 the benefits are paid out tax-free.
- You may flexibly draw your pension benefits during retirement.
- Your UK pension funds will not be subject to UK Income Tax charges upon death.
Our Australian Expat Superannuation Fund
Currently we are the only Australian ‘Retail’ QROPS provider in the market that will accept a UK Pension transfer. With the addition of a great choice of investment funds, this makes our product an extremely attractive home for your retirement savings.