Pensions

The list below highlights some of the points for consideration if you have a pension:

•    Nearly any UK statutory, company or personal pension can be transferred to NZ

•    The transfer system is driven by the UK and any transfer must be to a recognised NZ scheme in order to avoid any tax implications
 
•    The NZ provider is required to report [once a year] any withdrawals from transferred funds where the member has not been a non-UK tax resident for 5 complete years

•    Any such withdrawals made where the member has NOT been out of the UK 5 complete years will potentially attract a personal UK tax charge of up to 55% of          the amount withdrawn

•    Whilst the actual transfer system is relatively straightforward you must take advice to ensure you understand the transfer rules and tax implications

•    Transferring your pension will mean:

       Greater local control
       Potentially greater protection for your family
       That you do not have to 'look over your shoulder' at what is happening in the UK when you need/want to concentrate on your new life here in NZ

•    BUT………..there are a number of factors which need to be evaluated before a transfer can/should proceed!

For guidance on these issues please contact Mike.

State Pensions:

•    Your UK State pension will remain in the UK and will underpin any NZ State pension – you will not loose what you have accumulated

•    Your UK pension is payable from the same age as it would have been in the UK and can be paid either direct to a UK or NZ bank account or through the agreed       system using the NZ PAYE facility

•    You will pay tax on your pension here in NZ
 
•    You will become entitled to a full NZ State pension by working here for 10 years with at least 5 of those being after age 55

•    The current maximum NZ State Pension is around $22,000 and becomes payable if both partners qualify and when the younger partner reaches age 65
 
 

---