Craigs Investment Partners

Recent global economic volatility, uncertainty around COVID-19 and Brexit has made investors cautious, especially those living in NZ with UK pensions.

If you have a UK pension it’s important to be aware of the benefits and risks when transferring your pension to New Zealand.

1. It’s not always in everyone’s best interest to transfer.

Every pension and every person is different so it is important to get the best advice to help you make the right decision.

2. Time is an important consideration when weighing up what to do.

Currently there is a four-year transfer window from the first day you are a New Zealand tax resident, during which time you may be able to transfer your pension to NZ without any NZ tax obligations. If you transfer after this exemption period, the taxable income on the transfer could range between 4.76% and 100% of your pension value, assessable at your marginal tax rate.

3. Markets, rules and regulations can change at any time.

NZ residents with UK pensions are exposed to changes in both countries and this creates higher risk. There is no certainty around the future of pensions, especially with political and economic volatility in the world. By transferring your pension, you will have access to an adviser who can keep you up to date with local market changes and how they may affect you.

What to look for when choosing a transfer provider

> Firstly, ensure they are a QROPS scheme

(Qualifying Recognised Overseas Pension Scheme). A QROPS is an overseas pension scheme that is able to accept UK pension transfers, as the scheme meets certain requirements set by the HMRC (Her Majesty’s Revenue & Customs). Transferring to a non– QROPS could result in unauthorised payment charges.

> Ensure they understand the fundamentals of your UK pension

It may not be in your best interest to transfer. Some pensions may lose certain benefits by transferring, so you need to understand any implications of a transfer prior to making a decision.

> Look for a company that can offer professional investment advice

based on your situation and retirement plans, and who offer investment options in both GBP and NZD. That way, you can maintain your funds in sterling until you choose to convert them.

How Craigs Investment Partners can help with your UK pension transfer

We have a specialist UK Pension Transfer Team with local and UK market knowledge. They can provide you with full information and help you with the process of transferring your UK pension to NZ. We offer a free pension transfer information service to help you understand your UK pension and the options available to you.

We specialise in investing. We opened our first branch over 35 years ago, and we have grown to 19 branches nationwide with over 160 investment advisers.

Your wealth is personal - a transfer may not be the best option

We are unbiased in our approach. We make things as clear and concise as possible to help you make an informed decision on whether transferring is the best option for you.

We will contact your UK pension provider to obtain details of your pension and discuss this with you, including the advantages and risks of transferring.

We knew the transfer process was quite complex, so we wanted an experienced provider. Craigs was great, they made the process easy.

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A Superannuation Scheme to give you choice and control

Craigs Superannuation Scheme is a QROPS, and provides flexibility to select and build a portfolio from over 190 investment options, including GBP and other currencies, to best suit your risk profile and investment objectives.

Craigs clients have access to an investment adviser, and a wealth of research on companies, portfolio strategies, market commentary and market insights. These resources combined can help you build a portfolio of investments to meet your appetite for risk and investment objectives as you plan for the future.

Contact us if you'd like help with your UK pension >