When planning your retirement in Australia you need to consider the benefits of transferring your pension from the United Kingdom to Australia. You also need to give consideration to developing a long-term relationship with a financial adviser in Australia to ensure you are kept abreast of legislation and your overall financial advice needs are met. Below is a list of some of the benefits you can achieve by working with Pension Transfers.
- All authorised representatives of Brits to Aus Pty Ltd are fully accredited to provide you with a complete financial advice service, ie retirement planning, insurance, wealth accumulation, cashflow & budget management, as well as transfer of your UK pension. You only need to deal with one company for all your financial planning needs.
- To receive an Australia Government pension you must have lived in the country a considerable time. Brits to Aus Pty Ltd can provide you with advice on how best to maximize your retirement funds to ensure you can support yourself in retirement without relying on Government support.
- We only use QROPS recognised funds and all offer a wide range of local and international investments
- While we can provide guidance in an appropriate way to invest your funds, you will have the final say in how your funds are invested.
- We can provide you with account balances as and when required, or provide you with online access to your portfolio.
- Regular reviews of your portfolio will be offered to ensure you remain comfortable with your investment. If you are not we will work with you to resolve your concerns.
- The QROPS fund we recommend will accept regular contributions from yourself or your employer. These contributions will be added to your transferred value so that you only have a single superannuation fund
- You can have peace of mind in the knowledge that all aspects of your financial future in Australia can been considered by working with Pension Transfers.
Pension Schemes - Australia vs UK
There are considerable differences between Australian superannuation funds and UK pension funds. Some of these are listed below, together with some of the advantages and disadvantages of transferring your UK funds to Australia.
- Your full superannuation or pension balance can be transferred to your estate if you pass away.
- You may be able to receive significant tax advantages .
- There is no requirement to draw an income from your superannuation after you retire. Your capital can be left to grow for your estate.
- You will have full access to your lump-sum funds from age 65, or earlier in some circumstances.
- Lump-sums can be drawn tax free from superannuation from age 60, provided you are eligible to make withdrawals.
- You may be able to access your superannuation as an income stream from age 55, even if you are still working.
- You can choose the amount of income you draw at retirement, providing you draw at least the legislated minimum amount.
- Pension income is tax free from age 60
- There is no currency risk on income stream payments.
- You have control how your retirement funds are invested.
- You will generally have online access to your account and can get an account balance any day of the week.
- If you miss the six month transfer window you may pay some tax on the transfer of your UK funds.
- Once your UK funds are transferred to Australia they are 'preserved' and cannot be accessed or transferred back to the UK until age 65, or earlier in some circumstances.
- Investment income within superannuation is taxed at the concessional rate of 15%, but is tax-free once the funds are transferred to a pension at retirement.
- You will need to satisfy a work test if you are 65 years old to 74 years old before you can transfer your UK pension funds to an Australian superannuation fund.
- Caps exist that limit the amounts that can be transferred from the UK to an Australian superannuation fund.
- If you transfer UK pension funds to an Australian superannuation fund you may still be subject to UK pension rules if you have been a UK tax resident in the UK tax year that the transfer has occurred or at any stage during the previous five UK tax years.
- You can access 25% of your pension at pensionable age as a lump sum.
- No tax is payable on UK pension growth
- Some UK pensions have guarantees which you will forgo if you transfer to Australia
- Income from UK pensions is taxed at your marginal tax rate in Australia, although some of the income may be tax free
- You generally have limited control over how your pension is invested.
- International monetary exchange rates may affect your pension values
- Bank transfer fees become very expensive
- With some UK pension funds the full pension fund is unable to be transferred to your estate when you pass away.
Important: This is general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your particular investment objectives, financial situation and individual needs.
Your retirement will happen one day!
It might be close or some distance away. You might already be there. No matter what stage you're at, you need to plan for the future. And once you make your plan you need to make sure you stay on track and regularly review your progress and circumstances - and change things if you need to. One thing's for sure, if you don't plan for the future you won't be prepared for the future! But with the right advice and the right products you can approach retirement, and then enjoy it, with confidence.