Whether to transfer your UK Pension to Australia or not can be a big financial decision to have to make and especially at the moment when there are big changes around the Pension system and the potential of a ban on transfers for certain pensions.
These threads give some further information and background:
UK Pension Transfers
Since there is a huge flurry of activity going on at the moment in this area I felt it appropriate to detail our service offering here at Vista.
Pension Transfer Advice from Vista Financial Services
There are essentially up to 3 parts of service involved.
The first part of our service is getting to know our client via:
- Gaining a full understanding of your financial position including current retirement provision.
- Conducting a personalised consultation to explore your financial and lifestyle goals and objectives;
- Having full discussion around planning for your retirement ie age you wish to retire, income you would like to retire on etc;
- Carrying out a Risk Profile Assessment to ascertain your suitability and comfort levels towards investing.
The second part of the service is the Advice stage which is given in the form of a Statement of Advice (SOA) (which is a legal requirement for any Financial Planner to construct when providing advice) the fee charged is a flat fee based on the merits of the individual case and complexity (ie single, couple, number of pensions, type of pensions etc).
This Advice includes:
- A personalised written Statement of Advice factoring in your personal situation goals and objectives.
- Detailing the difference between the UK and Australian pension/superannuation systems which will include details of implications of transferring including taxation and HMRC and Australian legislation required to be met;
- For Defined Benefit Pensions (NHS, LGPS, Police etc) comprehensive modelling based on leaving pensions in the UK versus transferring to Australia.
- Retirement Projections for these scenarios factoring in also the UK State Pension and the Australian Age Pension and taxation implications.
- Our professional opinion as to where we believe the benefits are best placed (based on the outcome of the modelling).
- Fully detail how to navigate the transfer process and the implications if a pension/s is/are to be transferred.
- Information on how to obtain forecasts and maximise UK State Pension benefits.
- A recommendation for an appropriate Superannuation (QROPS) Fund in Australia based on individual circumstances;
- A recommendation for a tailored investment portfolio based on the individual investor risk profile;
The aim of our advice and service is to work with you so as to put you in a position whereby you are able to make a fully informed decision that you are comfortable with. The outcome therefore may be that the pension remains in the UK alternatively a transfer may be the course of action decided upon.
If following the presented Statement of Advice and our work with you a transfer is the course of action being taken then our service extends to the third part being:
- Administration and project management of the transfer of the pension;
- Opening of the recommended Superannuation (QROPS) Fund in Australia;
- Placement of the monies once arrived into the recommended investments within the Superannuation (QROPS) Fund;
- Dealing with the receiving scheme and the ATO in meeting any tax liability created by the transfer (if applicable) on your behalf;
- Constant contact throughout the process keeping you up to speed with progress and a detailed file closure letter following completion of the transfer;
If a transfer is going ahead and you wish for us to implement the transfer we then charge a fee to administer and project manage the transfer/s and again the fee is dependent upon the work involved and is fully disclosed in the SOA.
A services agreement is drafted prior to any work being undertaken, fees can generally be deducted from the transferred monies if a transfer is occurring.