UK Pensions/QROPS/OZ Superannuation - Table

I have compiled a table below that outlines some prominent points for example taxation, retirement age and accessibility for Australian residents (excluding temporary) for the different types of UK Pensions versus QROPS (popular destinations for Australians) versus Australian Superannuation Schemes.

For me from a tax, retirement planning and control perspective Australia will be the optimal destination to have your retirement monies if living in Australia for retirement.

However clearly other factors need to be considered in terms of whether their are guaranteed benefits involved in a current scheme ie (final salary/defined benefit), contributions cap issues for transferring into Australia, wishing to access funds earlier than Australian retirement age permits and so on.

In these cases then other destinations or leaving the original scheme as is could be the better outcome.

[TABLE=class: cms_table_cms_table, width: 708]

[TR]

[TD][/TD]

[TD]UK Defined Benefit/Final Salary[/TD]

[TD]UK Personal Pension/SIPP[/TD]

[TD]Malta QROPS[/TD]

[TD]Gibraltar QROPS[/TD]

[TD]New Zealand (PIE) QROPS[/TD]

[TD]Australian Superannuation (QROPS)[/TD]

[/TR]

[TR]

[TD]Age of access [/TD]

[TD]55yrs[/TD]

[TD]55yrs[/TD]

[TD]55yrs[/TD]

[TD]55yrs[/TD]

[TD]55yrs[/TD]

[TD]56yrs moving to 60yrs gradually[/TD]

[/TR]

[TR]

[TD]How much can be accessed[/TD]

[TD]25%/30% lump sum remainder provides income for life[/TD]

[TD]100%[/TD]

[TD]100%[/TD]

[TD]25%/30% lump sum remainder provides income for life

( May allow 100% from April 2017 )*[/TD]

[TD]30% lump sum remainder provides income for life

( May allow 100% from April 2017 )*[/TD]

[TD]100% from age 65 or retirement if earlier and preservation age met[/TD]

[/TR]

[TR]

[TD]Accepts transfers in from UK pensions[/TD]

[TD]Normally no.

But may be possible to buy extra years’ service.[/TD]

[TD]Yes[/TD]

[TD]Yes[/TD]

[TD]Yes[/TD]

[TD]Yes[/TD]

[TD]Only over age 55[/TD]

[/TR]

[TR]

[TD]Member bears investment risk[/TD]

[TD]No[/TD]

[TD]Yes[/TD]

[TD]Yes[/TD]

[TD]Yes[/TD]

[TD]Yes[/TD]

[TD]Yes[/TD]

[/TR]

[TR]

[TD]Tax on earnings within fund[/TD]

[TD]NA[/TD]

[TD]0%[/TD]

[TD]0%[/TD]

[TD]0%[/TD]

[TD]0%[/TD]

[TD]10%-15% in Super phase

0% in Pension phase[/TD]

[/TR]

[TR]

[TD]Tax on Lump Sum in Australia[/TD]

[TD]Proportional growth since arrival in Oz assessed at individuals marginal tax rate[/TD]

[TD]Growth since arrival in Oz assessed at individuals marginal tax rate[/TD]

[TD]Growth since arrival in Oz assessed at individuals marginal tax rate[/TD]

[TD]Growth since arrival in Oz assessed at individuals marginal tax rate[/TD]

[TD]Growth since arrival in Oz assessed at individuals marginal tax rate (may be a tax free element TBC)[/TD]

[TD]0%[/TD]

[/TR]

[TR]

[TD]Tax on Income

In Australia[/TD]

[TD]Assessed at individuals marginal tax rate[/TD]

[TD]Assessed at individuals marginal tax rate[/TD]

[TD]Assessed at individuals marginal tax rate[/TD]

[TD]Assessed at individuals marginal tax rate[/TD]

[TD]Assessed at individuals marginal tax rate[/TD]

[TD]0%[/TD]

[/TR]

[TR]

[TD]Benefits on Death[/TD]

[TD]Spouse (and financial dependents) pension typically 50%/66.6% of benefits[/TD]

[TD]100% of pot to nominated beneficiaries. Fund can provide income for beneficiaries[/TD]

[TD]100% of pot to nominated beneficiaries[/TD]

[TD]100% of pot to nominated beneficiaries[/TD]

[TD]100% of pot to nominated beneficiaries[/TD]

[TD]100% of pot to nominated beneficiaries[/TD]

[/TR]

[TR]

[TD]Tax on Death[/TD]

[TD]Income taxed at spouse’s marginal tax rate[/TD]

[TD]Generally zero (although UK may withhold if member over age 75). Tax planning can avoid this[/TD]

[TD]Zero[/TD]

[TD]Zero[/TD]

[TD]Zero[/TD]

[TD]Zero typically (although portion may be up to 15% if to a non-tax dependent)[/TD]

[/TR]

[TR]

[TD]Can transfer to Australian QROPS[/TD]

[TD]Government funded and private Schemes – Yes[/TD]

[TD]Yes[/TD]

[TD]Yes[/TD]

[TD]Officially no as needs to go to a scheme that has the 70/30 rule (May change in April 2017)*[/TD]

[TD]Yes[/TD]

[TD]NA[/TD]

[/TR]

[/TABLE]

*Autumn Statement in November proposed full flexible access for all QROPS, to match the flexibility of UK Pensions.