Everything you need to know about moving to NZ

We have been most concerned at reports of UK migrants being quoted exorbitant fees for execution only pension transfers.

Some transfer services don’t even give you a choice of where your funds are invested, and do nothing to minimise your exposure to exchange rate fluctuations. Others will only deal with large transfers, or fail to disclose their fees clearly. We have even met Brits who have been told that they have to transfer their pensions, which is certainly not the case.

You are right to ask plenty of questions of any pension transfer service. We hope you find our list of FAQs useful.

1. What are your qualifications and professional affiliations?
2. What experience do you have of arranging pension transfers and dealing with the UK Inland Revenue?
3. Can I get access to my pension funds before retirement age?
4. When can I transfer my pensions?
5. How long will it take to transfer my pension?
6. How can I protect myself from exchange rate fluctuations while my pension transfer is being processed?
7. Do I really have to transfer my pensions within 3 years?
8. Do you offer advice on whether a transfer is in my best interests?
9. What do you charge for pension transfers?
10. But some places offer free pension transfers…
11. Do you offer the Qualifying Recognised Overseas Pension Scheme (QROPS) of more than one NZ provider for me to transfer to?
12. Should I transfer my UK pensions into a KiwiSaver scheme?
13. What can I invest my pension funds in?
14. How much are the fees?
15. Will I receive ongoing advice?

• What are your qualifications and professional affiliations? Our advisers all hold the UK Financial Planning Certificate qualification, and are working towards or have their NZ Certified Financial Planner status. We are members of both the NZ Institute of Financial Advisers and the UK Personal Finance Society. Accordingly, we adhere to their strict code of ethics and conduct, and attend ongoing industry training.

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• What experience do you have of arranging pension transfers and dealing with the UK Inland Revenue? Broadbase International has been arranging pension transfers since 2002 and has excellent working relationships with many of the UK pension providers and the UK Inland Revenue. Our advisers all have extensive UK pensions experience.

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• Can I get access to my pension funds before retirement age? For the first 5 complete tax years after you arrive in New Zealand, you can only take benefits if you would be eligible to them if you were still in the UK. However, after this time you can take lump sum benefits with no liability to any UK tax. This could be as much as 100% as a tax-paid lump sum, although in practice most NZ superannuation scheme providers will have their own limits on what you can draw down before retirement age (normally around 40%). Some funds are more flexible than others.

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• When can I transfer my pensions? You can only transfer your UK pensions once you have permanently emigrated from the UK. Some UK pension providers will insist upon you having NZ residency before they will allow the transfer to proceed. You can however investigate the pension transfer process while you are still in the UK.

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• How long will it take to transfer my pension? UK pension providers vary widely in the speed of their response to transfer enquiries, and even in the methods they are willing to use to transfer funds – but most transfers take around three months. Our fastest ever was three weeks, and our slowest was nine months. We do our best to expedite the process, couriering documents to the UK, and calling to confirm receipt of documents and for frequent progress reports.

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• Do I really have to transfer my pensions within 3 years? No – most pensions can be transferred any time as long as you have not yet purchased an annuity.

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• How can I protect myself from exchange rate fluctuations while my pension transfer is being processed? You can hold the majority of UK pension schemes in pounds sterling with one of our preferred superannuation funds, earning competitive interest, while you wait for a good exchange rate.

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• Do you offer advice on whether a transfer is in my best interests? We certainly do, if required, and we will not recommend that you transfer your pension if it is not appropriate for you.

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• What do you charge for pension transfers? We charge stepped fee of 1% - 2.5% of the funds transferred, depending on the size of your pension fund. The fee is deducted automatically once they have arrived in NZ. Most of our advice is free, but we sometimes make a charge for a comprehensive report on your pension funds. This is only necessary if your situation is particularly complicated.

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• But some places offer free pension transfers… We’ve come across some banks who say that their pension transfer service is free. We’ve checked them out, and found that they tend to only transfer certain pensions, and won’t give you any advice. You are likely to find that there are many layers of ongoing annual charges. Some of our clients have reported that the banks are reluctant to investigate smaller pensions for them. They will only transfer your funds into their own superannuation scheme, with either their own managed funds or a limited fund selection – which may not be the best option for you, and you could be stuck with it for decades.

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• Do you offer the Qualifying Recognised Overseas Pension Scheme (QROPS) of more than one NZ provider for me to transfer to? We offer you a choice of QROPS approved superannuation schemes. We are happy to provide advice as to which scheme is best for you.

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• Should I transfer my UK pensions into a KiwiSaver scheme? A number of KiwiSaver schemes have QROPS approved status, and can accept pension transfers from UK pension providers. But KiwiSaver schemes are far more restrictive than other NZ superannuation schemes, both in terms of when you can access the money and what you can invest it in. We would not normally recommend that a UK migrant lock their transferred pension funds into a KiwiSaver scheme.

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• What can I invest my pension funds in? Most QROPS-approved NZ superannuation schemes have limited investment choice, but one of our preferred options gives allows you to select from literally thousands of investments, including cash, stocks and shares, managed funds, fixed interest investments, listed property trusts and UK investment trusts.

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• How much are the fees? Pension providers charge different fees, and investment products also attract different fees. We endeavour to always make any fees and charges clear to you.

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• Will I receive ongoing advice? You will receive regular updates and you will have the opportunity to get in touch with your dedicated investment adviser if you have any questions.

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