If you have worked in the United Kingdom and now live in Australia, you may have one or more UK workplace or personal pensions. Your available options will depend on your age, pension type, scheme rules, residence and personal circumstances.

Your options may include leaving your pension in the UK, transferring to another eligible UK pension scheme or transferring eligible benefits to an Australian Qualifying Recognised Overseas Pension Scheme (QROPS).

If you are below the UK minimum pension age

The UK normal minimum pension age is currently 55 and is scheduled to increase to 57 from 6 April 2028. A protected pension age or another limited exception may apply to some people.

Before reaching the applicable minimum age, you may be able to:

• Leave your pension with your existing UK provider.
• Review or change the investments available within your existing pension.
• Consolidate eligible benefits into another UK pension scheme.
• Continue contributing where your scheme permits, although UK tax relief may be restricted if you live outside the UK.

You should check your pension’s rules and consider obtaining financial advice before changing your existing arrangements.

If you have reached the UK minimum pension age

Once you reach the applicable minimum age, your options may include the following.

Leave your pension in the UK

You may be able to leave your pension with your existing provider and access benefits in accordance with the scheme’s rules.

Payments received while you are an Australian resident may have UK and Australian tax implications. The applicable treatment will depend on the type of payment, your residence and the UK–Australia Double Taxation Agreement.

Transfer to a Self-Managed Super Fund

An eligible Self-Managed Super Fund may be able to receive UK pension benefits if it meets the applicable Australian and HMRC requirements and appears on HMRC’s recognised overseas pension schemes list.

Operating an SMSF involves ongoing trustee, investment, administration, reporting and compliance responsibilities. Read our guide to SMSFs vs Retail Superannuation Funds] before considering this option.

Transfer eligible benefits to AESF

The Australian Expatriate Superannuation Fund provides a retail superannuation option designed to receive eligible UK pension transfers.

AESF generally accepts applications from people aged 55 to 75, subject to UK and Australian requirements, the transferring scheme’s rules and Trustee approval. If you are approaching age 75, contact our team before beginning the transfer process.

Important transfer considerations

Before transferring a UK pension to Australia, you should consider the following:

• The receiving Australian scheme must meet the applicable QROPS requirements.
• Your UK pension scheme must permit the transfer.
• A 25% Overseas Transfer Charge may apply depending on your residence, the receiving scheme, your available Overseas Transfer Allowance and other HMRC requirements.
• Defined benefit and other safeguarded benefits may contain valuable guarantees that will be lost permanently if transferred.
• Appropriate independent advice is generally required where safeguarded benefits exceed £30,000.
• The UK State Pension cannot be transferred.
• Transfers from unfunded UK public-sector pension schemes are generally prohibited.
• Australian tax and contribution rules may apply to all or part of the transfer.
• Benefits transferred to Australian superannuation remain subject to preservation and condition-of-release requirements.

Which option should I choose?

The most appropriate option will depend on your pension benefits, fees, guarantees, investment needs, tax position and retirement objectives.

IVCM can provide general information about AESF and explain the application process, but we cannot recommend whether you should transfer. Consider obtaining financial and tax advice covering both the United Kingdom and Australia before making a decision.

If you would like to find out whether your UK pension may be eligible for transfer to AESF, contact our team or complete our quick eligibility check.