Couple with pensions over Non-Concessional Contribution Caps

Stephen and Nina were clients that were referred to our UK office. Stephen was a successful professional who had a pension balances of GBP 680,000, Nina had a balance of GBP 97,000 with an additional GBP 500,000 that they were allocating to supplement their retirement income. After meeting with our UK advisers, and with their goal to get both Stephen and Nina’s pension funds and as much cash as possible into Australian super within 5 years (when he would turn 65), a Pension Transfer Analysis (PTA) was produced outlining recommendations of establishing SIPPS to receive their UK funds prior to transferring. We undertook a staged transfer process, whereby each of them transferred $150,000 AUD of their respective UK pension fund balances in the first Australian financial year and a further $540,000 AUD each will then be transferred in the next financial year. Stephen will fund this second contribution from his pension funds and Nina will fund her contribution from the small residual amount remaining from her pension funds and the balance is then coming from their saved cash. Stephen’s residual pension funds within the SIPP are invested in the UK through a diversified range of fund managers. This will be until they can both make their next round of transfers in 3 financial years after their transfers of $540,000 each. The funds that were transferred to superannuation will be invested in a range of listed assets, cash and term deposits and they will convert their super funds into a pension streams once their respective $540,000 contributions arrive in Australia. They will also then consider whether to look at establishing a SMSF or not. Stephen and Nina have engaged our recommended accountant as their tax agent to apply for their Tax file Numbers to prepare their ongoing tax returns.