Let’s call him William…. Since 2015 changes at HMRC led to stricter rules about which Australian pension scheme you are able to transfer your UK pot to. His mantra has always been "Hope for the best, but PLAN for the worst", and believes that the biggest impact that an adviser can have on a client's life journey is to take them on a journey from generally having little or no real idea of what their retirement will look like, to giving them the understanding of what their retirement looks like now, then helping them navigate a path to what they WANT their retirement to be. If you wish to avoid an HMRC tax penalty of up to 55% of your fund value, you must transfer your UK Pension fund to an Australian QROPS complying super fund. Harding Wealth Management Pty Ltd (1009142) is a Corporate Authorised Representative and Simon Harding (448430) is an Authorised Representative of HNW Planning Pty Ltd AFSL 225216 www.hnwplanning.com.au | Privacy Statement | Financial Services Guide© 2020 Harding Wealth Management (ABN 62 603 965 215), How to Transfer your UK Pension to Australia, https://hardingwealthmanagement.com.au/wp/wp-content/uploads/2017/10/logo.png, https://hardingwealthmanagement.com.au/wp/wp-content/uploads/2018/09/ukgeneralelection-640x410-553x311.jpg, Harding Wealth Management, PO Box 408, Willunga SA 5172, Australia, Contact us today for a highly personalised advice service, Caveat Emptor – UK Defined Benefit Pensions. In fact, many people have been delaying the transfer purely because of the conversion rate for absolutely no reason. Supers are available form a variety of providers and those working in Australia are typically able to choose who to have the superannuation fund with. Therefore, you can contribute up to $300,000 in a single year, and then cannot contribute again for the next two years. Defined Benefits pension schemes, often also known as final salary schemes, come with very specific and often generous benefits which often means a transfer would see you losing out on some guaranteed benefits upon retirement. But, the best way to understand the full tax implications of transferring your UK pension to Australia is to speak with a specialist pension transfer advisor with experience of UK-to-Australia transfers. Your UK pension that you worked so hard for is, sadly, taxed here in Australia just like normal income. or Subscribe to save article. If you are under age 55 you should still receive advice on your options. If everything is as it should be, you should sign the paperwork to allow the UK to Australian pension transfer happen. Ensure you’re aware of all the rules relating to the transfer, charges, fees, taxes, time scales and financial limits. A Qualifying Recognised Overseas Pension Scheme (QROPS), from a UK perspective, is a pension that has been deemed suitable for a UK pension transfer as its rules are similar to those of the originating UK-based scheme. While there are special circumstances in which you can access your Australian Superannuation early, it’s unlikely they will relate to a move to the UK. It’s also important to know that while many UK pensions, both private, personal and work pensions can be transferred to the right Australian scheme, some UK pensions absolutely cannot be transferred. He is also the only CFP Chartered Fellow of the UK’s Chartered Institute of Securities and Investment currently licensed to provide advice in Australia. Also, due to rule changes you cannot move a UK pension to an Australian QROPS until at least the age of 55 due to Australian Superannuation Schemes allowing people to have access to their pension (which is not …

If you already live in Australia, you’ve probably discovered that its can be pretty simple to access some of your finances and other details, online, from existing UK accounts. This means you can only transfer your UK pension at the rate of $100,000 per year. If you’re a temporary resident of Australia and you’ve earned enough money for a super to be created in your name, you will be eligible to claim a departing Australian Superannuation payment (DASP). If you transfer your fund within 6 months of arriving in Australia then there is no tax due. However, please be aware that under no circumstances can you transfer any State Pension to a QROPS. That’s simple. If it’s not a QROPS, your UK pension scheme may refuse to make the transfer, or you’ll have to pay at least 40% tax on the transfer. The second question is: Should I transfer my UK to an Australian QROPS? The maximum UK pension balance you can transfer using the Australian superannuation non-concessional contributions bring-forward rule is $300,000, based on figures for the 2018-19 financial year. How are social security benefits affected by a special disability trust? If there’s a chance that you could return to the UK, then transferring your UK pension to an Australian scheme might not be the right decision. Level 1, 54 Balgowlah Road Under the exceptional circumstances where this might be possible, you’ll likely face high charges. They include tax details, scheme benefits – both of your UK pension and the Australian super you’re considering. Are you aged 55 or over? I’m sure William can think of some better ways to spend $6,000! The way I explain it to clients, is your UK Pension is sitting on the runway at Heathrow airport (feel free to interchange Manchester, Glasgow, et al) and wishes to fly to Sydney (feel free to interchange to Adelaide, Brisbane, Melbourne, Perth).