Benefits of Transferring your UK Pension

 

SAVE up to 45% tax on your retirement income

• • As an Australian resident, your UK retirement income is usually taxable at your Australian marginal tax rates.
  • Australian super monies withdrawn as income or lump sum at retirement are usually tax free.

PRESERVE your pension for your beneficiaries

• • The UK pension system dictates that your beneficiaries may receive a reduced sum & in some cases, nothing at all – potentially nothing for your spouse, children or family.
  • In Australia, your spouse and / or dependents will generally receive 100% of your capital tax free.

CONTROL the capital value of your pension

• • Your UK pension will only allow you a maximum 25% lump sum of your capital, which is taxable at your Australian marginal tax rate.
  • In Australia in retirement, you can access up to 100% of your super as a lump sum – tax free – when you want or need it.

EXCHANGE RATES 

• • If you source your pension from the UK, you will be dealing with small GBP pension amounts being paid every month & then dealing with the usually very uncompetitive foreign exchange conversions for the next 20 to 30 years of your retirement.
  • In Australia, your super is paid in the same currency as your outgoings.

Keep your Pension in GBP – whilst still transferring it to Australia 

If the exchange rate is a sticking point in your decision to transfer, we can transfer and invest your UK Pension monies in GBP (Pounds Sterling) or USD if desired.

We can offer a range of investment options (in GBP & USD) according to your risk profile enabling a diversified investment portfolio.

Therefore if you wish to transfer and invest in GBP or convert to USD due to fluctuating exchange rates, the following investment options are available:

You have the option to invest in GBP directly in assets such as:

• Foreign Currency cash (GBP, USD & AUD)
• Exchange Traded funds (ETF’s) – which invest across a range of international shares, property, bonds, cash in either GBP or USD.

 

We have a wide range of investment options available in GBP, AUD and USD, so you can take advantage of the your currency of choice whilst still having access to wholsesale exchange rate which can SAVE YOU MONEY.

★★★★★ 5/5

HIGHLY RECOMMENDED BY OUR CLIENTS

Main benefits of transferring:

Estate Planning – Protect Your Asset and your Loved Ones – In the event of your death, Australian superannuation pays out 100% of your money, tax-free to your nominated spouse or tax dependents; versus the UK pension system where dependents will only receive a reduced income stream or at times, all benefits are lost.

Superior Tax Outcome – From age 60 in retirement, Australian Superannuation is 100% tax free, either taken as a lump sum, or an income stream or a combination of both. Whereas if left in the UK, your UK pension income would be taxed up to 45% in Australia.

Freedom of Choice – Greater Flexibility – In Australia, there is no requirement to purchase an annuity. Australian superannuation offers the choice in retirement of either a lump sum, an annuity, an account based pension or a combination, plus Australian superannuation allows a considerable range of investment options

Consolidation of your retirement Assets – Having all of your pensions in your country of residence means having only one set of tax and pension rules in retirement and one set of pension/superannuation fees.
Budgeting for your Retirement – If you leave your pensions in the UK, your retirement benefit from the UK will be subject to exchange rate fluctuations for the rest of your life; hence making budgeting for your retirement very difficult. As it is impossible to predict the future AUD/GBP exchange rate, it is more advantageous to have your income and expenditure in the same currency.

Note: Australian Super is not guaranteed.