WHAT'S CAUSING STRESS WITH YOUR FINANCIAL MOVE FROM THE UK TO NZ?
For more information about our process please contact us on – if you are not an existing client then by all means still contact us and we will quote our fee for our Retirement Planning report! BritsNZ Ltd services cover an extensive range as follows:
UK Pension transfer advice
NZ Pension options – Kiwisaver
UK and NZ State pensions
Banking in the UK and NZ
Our Disclosure Document can be requested by clicking HERE.
UK Tax issues
New Zealand Wills and Family Trust advice
superannuation (NZ) not pension (UK)
In New Zealand, what the British know as Pension Schemes are called Superannuation Schemes! There are a number of employers in NZ, usually larger employers, who will offer some form of company superannuation scheme just like an employer scheme within the UK that you may have been part of. They are required, by law, to offer all employees access to a KiwiSaver Plan and if you, the employee, joining such a KiwiSaver scheme they must pay a minimum of 3% of your salary into the plan - as must you!
Many UK Company and Personal Pensions can be transferred into NZ into what are known as QROPS schemes. The UK HMRC set the rules under which such transfers are to be made and what tax issues there may be for you to understand (with our expertise) and transferring must be a viable option to consider. In addition, after you have been in NZ for 4 years the NZ IRD will look to tax your pension benefits held off-shore. So, whilst you have a 4 year window to consider transferring you need to be aware that transfers can take anywhere from 3 to 9 months to complete so do not leave it too late. In simple terms, when you see NZ as your long term home (i.e. to at least age 57) then that is the time to look at transferring benefits.
Motivating our clients to undertake any Retirement Planning processes is one of our greatest challenges – simply remember that, whether you like it or not, THE CLOCK IS TICKING toward retirement and putting in place some financial plans to allow you to retire when you want with the finances you want/need means planning. The SOONER THE BETTER!
You may have transferred your UK pension benefits and be accumulating either/both KiwiSaver or company superannuation benefits but, are they going to get you to where you want to be at the age you wish to retire?
If you are an existing client of BritsNZ Ltd, on the financial side of things, we offer a FREE of charge retirement planning review service where we look at what age you want to retire, look at what you want to do in retirement, look at your cash needs and your income needs and then look at how close you are (currently) to achieving your goals. Our calculations are based on conservative estimates of growth and take account of any transferred benefits, KiwiSaver benefits and NZ State pension benefits. The aim is to see if you will hit the fund target you need to meet your retirement plans and allow you to make some decisions on planning strategy from a position of knowledge.
If you are not already a client of BritsNZ Ltd then we will be pleased to quote you a fee for creating a retirement plan report and making recommendations, as/if appropriate. Simply contact us at email@example.com
A Kiwisaver pension scheme is a form of personal pension plan which employers must offer to all new employees, albeit there is no compulsion to join. If you join (and you should do so as you will be getting 'free' money from both your employer and the Government) then you can pay in at the following rates:
· 3% (minimum); 4% ; 6%; 8% or 10%
· Your employer must pay a minimum rate of 3%
· Member Tax Credits are paid into your Kiwisaver by the Government, at the rate of 50c for every dollar you contribute up to a maximum of $521.43 per year.
We know that the first year in NZ can be expensive but would recommend that you start saving into Kiwisaver as soon as you have Residency. If you know, on arrival into NZ, that you will be eligible for Residency you may wish to negotiate with your employer to pay your Kiwisaver money into a holding account until it can be paid into your Kiwisaver plan.
Once you are settled in NZ you can then assess whether you wish to increase your contribution level.
NOTE: Kiwisaver can be accessed at various times other than retirement but do bear in mind the (almost) sole focus of this type of retirement savings plan is FOR retirement and hence you should be aiming to save until you can access the funds, which is NZ State Retirement Age – this is currently age 65 for both men and women.
There are three ways in which you can select a Kiwisaver plan:
· Allow the NZ IRD to decide by having them place you randomly into one of the default schemes.
· You employer will point you to a preferred provider.
· You choose your own Kiwisaver provider.
You ALWAYS have a right to choose your own provider and BritsNZ Ltd recommends that you use the Booster Kiwisaver Scheme. We use this scheme ourselves; it is a Kiwi company; it has Kiwisaver friendly fees; it has a range of investment funds at differing levels of investment risk into which you can invest (either across a range or into just one fund). There is no guarantee that the Booster fund will outperform any/all other Kiwisaver schemes but they have a complete focus on the Kiwisaver market and this is their core business. For further details on this Kiwisaver plan please email firstname.lastname@example.org
UK & NZ state pensions
As a New Zealand Resident you will be entitled to take a FULL NZ State Superannuation income from age 65. All previous years of working in the UK are counted toward maximising your NZ State entitlement and effectively the two Governments liaise to sort out what money goes where but from your perspective you simply get your superannuation income paid via the PAYE system on a fortnightly basis.
If you are coming from a country other than the UK then this general rule may apply to you (but each country is different so care is needed and advice should be sought………You may become entitled to a full NZ State superannuation income at age 65 by working in NZ for 10 years with at least 5 of those being after age 55.
Whilst BritsNZ Ltd cannot and will not give you advice on non-New Zealand investments, certainly, from a UK point of view, they have an understanding of these investments and can guide you as to who to speak with prior to leaving the UK so you have your finances in place.
To seek further advice please contact us here.
BANKING & CURRENCY
We recommend that you open an NZ bank account before leaving the UK. We have close connections with BNZ in NZ and recommend you open your accounts with them. If you open an account with BNZ and have any issues, questions or causes for concern then please let us know and we can talk directly to the Head of Migrant banking thereby opening doors that you would struggle with!
You can either contact BNZ directly with an application for opening an account as an international migrant….or….do so through ourselves so that we can initiate an early contact with the Migrant Banking team so they can alert to your application and can thereby react more swiftly. Once your account is opened please let us know so we can keep BNZ in the loop and ensure that they send you details of who to see and where to go once you arrive in so you can complete the account opening processes.
BritsNZ Ltd do not receive any incentives or commission from BNZ for the introduction of new clients.
Click the form 'Apply before you fly' to download the BNZ factsheet for what they can offer immigrants and how to apply.
WHY ALL THE PAPERWORK?
The reason is that whilst in the UK you have to hand all the paperwork you will need to complete the application form and more importantly to enable you to meet the money laundering requirements. Again, by doing this you will simplify your early days in NZ as all you will be required to do is show your passport as ID and the account will be activated. If you let us know when you are due into NZ and where you will be going we will liaise with BNZ to highlight the branch and person you should see to open that account – again personal service at an important time! It also means that any funds traded by your currency specialist will be in your NZ account awaiting your arrival, currently earning potentially double interest rates than what it is earning in the UK.
As part of emigrating to New Zealand you will need to change your Sterling into NZ$ amounts. Most people will initially think that this should be done via their UK bank but this is a potentially very costly option. In simple terms banks are banks and you are, sorry to say, a minnow to them. They have little to no incentive to go out there and find you the best exchange rate, regardless of exchanging £5,000 or £500,000.
The MOST important thing to you as a migrant will be to maximise your exchange rate so you can have as many NZ$s as possible when you start your new life. To do that our recommendation is to use a currency exchange specialist. In our experience, the extra that you can make by using a specialist will be significant and in some case we have experienced has made the difference between being mortgage free in NZ and not…or…in another case allowed the migrant to buy a car with the “extra” they made using a specialist.
You will find the specialists we recommend in our helpful sites page. Changing currency can be a little complex so talking to the specialists (and we always recommend talking to two so you can get them to compete) as early as possible will allow you to grow your knowledge and thereby potentially make better decisions. We can also help by providing you with a free copy of our brief outline of the differing ways in which you can trade currency. Simply e-mail us on email@example.com and ask for your copy!
BritsNZ Ltd does receive a commission payment for the introduction of business to the currency exchange providers based on the amount a client trades. It does NOT affect the rate the client gets and comes out of the currency traders’ profit.
Whilst BritsNZ Ltd cannot and will not give tax advice as it pertains to the UK it does understand and know of the key tax issues to be aware of when emigrating across the world and will look to guide migrants as to whom to talk to ensure that their tax issues are in good order when they leave the UK.
BritsNZ Ltd does not give advice around protection, health, income or medical insurances or general insurances but do understand them and again will give guidance as to who to talk to prior to leaving the UK to ensure that your protection planning is in place, current and provides the cover you need before leaving the UK.
Once in New Zealand they will refer you to local specialists who can review your protection plans and make any appropriate recommendation.
You should ensure, particularly if you have children, that you have an up-to-date will in place in the UK. You should consider creating an NZ will once the main bulk of your cash/assets are here in NZ, you feel settled and you can decide whether you want your children brought up in NZ or the UK – if NZ then it may take some time to find people you would want to ask to be Guardians.