The New Zealand Option
We are increasing being approached by Australian Residents, who were previously advised to transfer a UK pension to a QROPS in Malta, Guernsey, the Isle of Man or Gibraltar; and either feel stuck or that their funds have not been performing as hoped due to high product fees.
If the transfer from the UK took place prior to 9th March 2017, an option exists to consider a transfer to a New Zealand Pension. Typically, costs are much lower, but maybe more importantly, due to the Trans-Tasman Tax Treaty, withdrawals can be received tax-free for an Australian Resident, and funds can be invested in Australian Dollars.
Indeed, transferring to New Zealand could be more beneficial than transferring to Australia in some instances as withdrawals can be made from Age 55 (many cannot access an Australian Superannuation until 60) and it overcomes issues with Non-Concessional Caps and tax on transfer to Australia. This often helps in circumstances where mortgage / home loan rates are high, and accessing a pension to reduce some of this debt is important.
While withdrawals cannot be taken until age 55, a transfer to New Zealand can take place in certain circumstances before this age.
Each individual personal circumstances and objectives are different, but please contact us to see if a solution may work for you.
