UK migrants to New Zealand need to consider their UK pension options before they leave the UK. Many migrants, who have researched the subject, would know that if they wanted a pension transfer to New Zealand to happen, then the receiving scheme would have to be registered as a Qualifying Recognised Overseas Pensions Scheme (QROPS).
Throughout New Zealand, there are many superannuation schemes that have been registered and approved by the UK’s Her Majesty’s Revenue and Customs (HMRC) as QROPS.
Each New Zealand QROPS would fall under the same tax legislation in New Zealand and also the same UK QROPS rules within the 5 year reporting period. However, each scheme would have their own sets of charges and costs.
Therefore, when you transfer a UK pension to New Zealand, how do you decide what to do and which QROPS to use?
The key strategy would be to get suitable advice for your UK pension before you leave the UK – preferably from a specialist in UK pension transfers to New Zealand. Once you have spoken to a specialist adviser, regarding your retirement plans and goals, it would become clearer as to which is the most suitable QROPS.
Although you are migrating to New Zealand, you may wish to look at QROPS in other jurisdictions as well. Remember, HMRC allows UK pension transfers to QROPS in countries other than the one you are migrating too. Should you settle for a QROPS in New Zealand, however, then the entry charges, annual management costs and exit penalties of each scheme should all be considered.
