Can I transfer my UK pension to Australia?
If you’re reading this article then it’s likely that you may be one of the 1 million British expatriates who have emigrated to Australia and asking the same question – Should I transfer my UK pension to Australia?, or one of the many Australians who have spent some time working in the UK. Whilst you were working in the UK, it is likely that you will have, or your employer will have, paid into some form of pension scheme for your retirement.
Now that you’re based in Australia, you have the option for transferring this pension into Australian Superannuation and bringing this money closer to home. You will need to be aged between 55 and 75 and the receiving Superannuation Fund must be a QROPS. You will be able to withdraw this money from Superannuation once you reach your preservation age.
If you are not sure if you will remain resident in Australia for at least five years after the transfer, you should be aware that the transfer could subsequently become subject to the Overseas Transfer Charge. This charge must be deducted from your pension fund and paid to HMRC should you become non-Australia resident within five years of transfer. The charge will be 25% of the value of your pension at the date you leave Australia.
It is important that you find out from your UK pension provider what the value of your pension was at the date you became Australian resident and whether your pension includes any safeguarded or guaranteed benefits.
If you require financial advice, you should contact a Financial Planner who is licenced by the Australian Securities and Investments Commission (ASIC). Depending on the type of UK pension you have, you may also be required to obtain advice from a financial adviser in the UK who is registered with the Financial Conduct Authority (FCA).
Transfer Your UK pension to Australia
This explainer video for the Australian Expatriate Superannuation Fund gives a simple explanation of the eligibility and process to transfer UK pension monies into our Australian Superannuation Fund.
IVCM offers a range of market-leading international retirement planning solutions such as SIPP, QROPS and QNUPS, as well as specialising in third party distribution, outsourced administration, and support services to our trustee partners across the globe, making us the leading choice for the Expat market.