Aged Under 55
In July 2015, the UK Government (HMRC) cancelled the QROPS status of all Australian Retail funds, effectively prohibiting transfers to Australia to anyone under the age of 55.
However, if you are aged below 55 years and have a
- UK Defined Benefit /
- Final Salary Scheme, or a
- Personal Pension Plan,
After consultation with a licenced FCA advisor, you can consider transferring your UK benefit into a UK Self Invested Personal Pension (UK SIPP) – which is a personal scheme.
Your monies will be invested in a similar way you your Australian super – & then when you turn 55 years of age, you will be eligible to transfer the monies to an Australian ROPS.
Veyron Wealth Group has a panel of Authorised UK approved advisers & can assist with this process.
Why do this?
Secure your highest Cash Equivalent Transfer Value (CETV):
In recent years due to historically low UK interest gilt rates, pension transfer values have been at all-time highs. However, since the beginning of 2017 CETVs have begun to decline for many schemes by an average of 10-15%. It may be the best time to secure possibly the highest CETV your UK scheme is likely to receive.
We can facilitate an interim transfer of the lump sum value into a UK SIPP to secure the current CETV of your UK scheme until you are eligible to transfer those funds to Australia upon turning 55.
Possible regulatory changes to Defined Benefit transfers:
There is industry speculation that transfers from all Defined Benefit schemes may be become prohibited in the future (similar to the 6 April 2015 ban on all unfunded Civil Service Defined Benefit schemes).
In order to safeguard your UK funds, it may be prudent to transfer the Defined Benefit scheme lump sum into a UK SIPP. Then regardless of what happens with this regulation, your funds would be in a personal scheme and you will still be eligible to transfer those funds to Australia upon turning 55.
Have some control of how your UK pension monies are invested
Similar to your Australian super, your pension can be investment as per your risk profile appropriate to your needs.
