Uk Pension Transfer

[teamplayer2003]

Hey All,

As I have just had to transfer my pension from the uk I thought I would share something with you.

As a Broker I have access to a company called fidelity life. They are a new zealand owned and operated company. anyway they have a service to transfer your UK Pension to NZ and hold it until you are happy with the exchange rate and then you can get the fund moved instantly.

Mine is sitting still earning intrest but ready for me to make a call when I am happy with the exchange rate and its completed.

Not trying to use this as advertising as there is nothing to be gained on my part for helping people out with this service.

PM me if you have any personal questions about this.

Tim

[IanW99]

...
As a Broker I have access to a company called fidelity life. They are a new zealand owned and operated company. anyway they have a service to transfer your UK Pension to NZ and hold it until you are happy with the exchange rate and then you can get the fund moved instantly.
...

So are you saying that as I'm not a broker I don't have access to this company?

Isn't this the same kind of service that all the pension companies provide?

Is there something that they provide that other don't? What made you choose them over the others?

Ian

[teamplayer2003]

No, you have access to them, but need to go via and advisor/broker like me, or via the fidelity web site where they can find you an advisor.

Not all of the pension companies provide this service, many simply just transfer your funds and you get the rate given, there are also some which complete a similar service but are not as established and with your life savings you want to feel confident in the company completing the transfer.

I chose them because they are the only New Zealand owned and operated Life company in the main market, they have been operating for 36 years or more now. There products are rated very highly against Plantec (They rate insurance company's) number 1 in many risk products.

There products are designed specifically for New Zealanders.

Its always best to work via a broker anyway, you get a personal service, someone to fight your corner and it never costs you more money, most of the time it costs you less because you save money.

Like I said, not using this to get any business personally as commissions on this type of work is very minimal, its for you guys out there who are after an opinion for an avenue to transfer your pension with confidence without the worry of the exchange rate.

there are many things which Fidelity offer in risk products which are unique. However in saying that many of the insurance companies have a unique selling point and it comes down to individuals needs.

One more thing, Fidelity is not the only company which you need to use an advisor to access. If in doubt speak to your broker.

Phew... hope this is useful.

Tim

[Carey]

Thanks for that; just wondering, when is it sensible to transfer your pension? What does it depend on?

[teamplayer2003]

It depends on if you are looking to retire here. If you are then its a good idea. Compounding intrest can be a powerful thing. However like all investment there is risk, but you have a risk in leaving it where it is too.

Having said that you can always transfer it back if you return.

[walshy]

do you mean your state pension or private?

[Mamee & Co]

I am hoping that I have this right having been working through it over the last few weeks.

The state pension cannot be transferred. However there is a reciprocal agreement between UK and NZ regarding State Pensions. In very simple terms if you are entitled to both the NZ will be reduced by the amount you receive from the UK.

If you have a personal pension plan you can transfer this over to an approved plan within NZ. There are strict guidelines on which funds qualify for Inland revenue Approval due to the different tax systems in both countries. You can also continue to pay into a UK pension plan for 5 tax years after you emigrate and obtain tax relief.

If you have a pension plan in the UK you will require to be aware of the state of the funds in the UK. You will also have a certain state guaranteed element in most personal pensions. You are also committed, under current legislation, to buying a retirement annuity. Generally these cease to pay out upon your death (or that of your spouse). If you remain in NZ you are exposed to exchange rate fluctuations upon funds transfers of your UK pension each month (or other period you use to transfer).

In NZ, after 5 years have elapsed you can do a lot more with you pension funds, you do not have to buy an annuity, and can use a different financial vehicle to fund your retirement. There are no guaranteed elements. Should you die the balance of funds will pass to your family. However you are exposed to the exchange rate when you transfer your funds which is why the option Teamplayer is talking about is useful as this scheme allows you to choose when to maximise the potential of the exchange rates.

There are benefits and potential risks with any pension..transferring it just adds more into the pot. Like currency rates this is another time I wish my crystal ball worked properly. I promise that I would share its information with you! Unfortunately it doesn't!

And no, even with advice I am still working my way through it all!

[Duncan74]

Given that the markets are still fairly low, and that the pound is historically weak, then my personal view is that I think I may continue to invest in the UK fund for the next few years. Once there's been a 'bounce' to the FTSE or other european markets that my pension is invested in and I'm as sure as I can be that I'm statying in NZ for life (ie >2 years) then I'll consider making a change at a time when the exchange rate looks favourable. But I've got 30 years to get it all sorted and am moderately risk averse.

Due to the inflation and deposit rates in NZ then I'm tempted to get the funds into the NZ economy sooner rather than later once I'm sure that's where I'll be retiring.

[Kiwi Mac]

"There products are designed specifically for New Zealanders."

I see this kind of phrase a lot in many areas of life. Are New Zealanders so unique that they need special things?!

[teamplayer2003]

You make a good point Kiwi Mac, that phrase is banded around alot. In regards to this company it is because they only trade in New Zealand and are New Zealand Owned and operated. Hence they dont have any big brother American, Asian ect companys dictating there products.

They are also quote often the cheapest too.