Why Transfer

It is not often clear whether you should transfer your pension from the UK to Australia. Various factors such as age, occupation and UK pension type can influence the situation. Below are some of the benefits you should consider in your decision to transfer your pension from the UK to Australia:

Flexibility

Upon retirement, you have the option to receive either a lump sum, an Annuity, an Account Based Pension or a combination. In the UK you are generally required to purchase an annuity.

Investment choice

You have the flexibility to change your investment strategies.

Tax Efficiency

Generally you can withdraw your Australian superannuation tax free when you reach the age of 60. This includes any UK pension monies transferred into your Australian superannuation scheme.

In the UK, when you retire and start receiving pension payments (via an annuity), you are taxed at your UK marginal tax rate. Likewise, in Australia your UK pension payments will be taxed at your Australian marginal tax rate.

Consolidation

Having all of your pensions in one country subjects you to only one set of taxation and pension laws.

Currency Risk

Elimination of currency risk. Depending on your time to retirement, it can be impossible to predict the future GBP / AUD exchange rate, hence making budgeting for your retirement a difficult process.

Death Benefits

In the event of death your superannuation fund in Australia will usually be paid out to your nominated beneficiaries as either a lump sum or an annuity. In the UK your nominated beneficiary only receives a percentage of the annuity.

No up front expenses

Our fees associated with the transfer of your pension are deducted from your superannuation fund by the receiving QROPS superannuation fund in Australia.