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Why transfer your UK pension to Australia

If you are retiring in Australia,  in most cases it will be financially beneficial to transfer your UK pension into the Australian superannuation system.

Main benefits of transferring to Australia:   

Tax Advantages  Australian super monies withdrawn at retirement are usually tax free, whereas pension payments in the UK are usually taxable at your marginal tax rates.
Estate Planning – Protect Your Asset and your Loved Ones  Australian superannuation generally pays out 100% of your money to your nominated beneficiaries versus a reduced sum (or sometimes nothing at all) under the UK pension system.
Freedom of Choice Within the Australian superannuation system, you have greater flexibility at retirement especially when compared to Defined Benefit Schemes.
Consolidation of your Assets  Having all of your pensions in one place means having only one set of tax and pension rules to comply with and one set of administration fees.

 If you are concerned about exchange rates, it is possible to retain UK pension transfer proceeds in £GBP (sterling), therefore exchange rate fluctuations are not a reason to delay transferring.

Getting expert QROPS advice could potentially save you thousands on your transfer – Why QROPS Advice is Essential

As a result of UK legislation (9th March 2017) QROPS transfers to New Zealand, Malta, Guernsey, Isle of Man etc will now incur a 25% tax charge on the total transfer value if the individual does not reside in the same country as the QROPS – visit news for further details.

Why QROPS advice is essential for UK pension transfers to Australia

 If you decide to transfer a UK pension to Australia without seeking specialist QROPS advice (or with assistance from your Accountant or Financial Adviser) you could risk increasing your overall costs unless your Accountant/Adviser is also a QROPS expert.

Nik Hayes a former UK Chartered Accountant now living in Australia, explains why he sought expert QROPS advice for his own transfer, despite having substantial financial expertise himself.

For most, the risk of higher costs and/or potential penalties is too high. As Nik Hayes states, let the experts handle the complexities of QROPS and the tax calculations for you.

Experience has proven that people who do not seek QROPS expertise for their transfer:

May overpay on tax In particular for Defined Benefit scheme transfers on the ‘applicable fund earnings’ calculation
Often lose out on a poor ‘retail’ exchange rates  If not retaining £GBP, Sterling Planners have access to institutional (wholesale) FX rates and pass these benefits in full onto our clients.  Client case study illustrates a potential net gain of AUD $32,000 from favourable, wholesale FX rates.
May incur an HMRC ‘unauthorised payment charge’  Up to 55% of the total transfer value dependent on how you structure your benefits beyond the initial UK pension transfer.

IMPORTANTIt is the individual’s responsibility to ensure their transfer is compliant i.e. complies with all the UK QROPS/ROPS rules and the Australian ATO tax rules. In addition, HMRC do not guarantee that transfers to schemes on the ROPS list will be free of tax. It is your responsibility to find out whether you have to pay tax on any transfer of pension benefits, further supporting the need for specialised QROPS advice.

Why engage Sterling Planners for specialist QROPS advice

Sterling Planners are considered one of the most experienced reputable UK Pension Transfer specialists in Australia. Our steadfast approach to protecting your retirement monies assures total peace of mind in the safe, secure transfer options we recommend.

We predicted (and warned prospective clients for some time) that new HMRC legislation impacting Offshore transfers (i.e. to NZ, Malta, Gibraltar, Guernsey, Isle of Man etc) was on the horizon affecting individuals not intending to reside in the same country as their QROPS. The new UK legislation was passed in March 2017, visit Latest News for further details.

Why Sterling Planners have the best reputation in the industry?

Word of Mouth Referrals Many of our client have been referred by other satisfied clients and are often financially knowledgeable who have thoroughly researched UK pension transfers. Quite often they conclude that QROPS regulations are complex and often changing, therefore, specialist QROPS advice is essential to ensure a tax optimised transfer which incurs no penalties for non-compliance.
QROPS Experts  Sterling Planners have been the market leaders in UK pension transfers since 1997, having dealt with some of the largest and most complex transfers, we understand the process deeply and keep up to date with all the latest legislative changes.

Non-compliant transfers attract penalties of up to 55% of your total transfer value.

Ability to facilitate a global integrated solution


Sterling Planners can facilitate:

– UK FCA advice where required

– establish UK SIPP’s when necessary

– establish a ROPS certified Self-Managed Superannuation Fund

Wholesale Exchange Rates In many cases, the savings from wholesale FX rates Sterling Planners can obtain, more than covers the transfer fees – Client case study illustrates a client’s potential savings from wholesale FX rates of AUD$32,000.
Ability to retain and invest in £GBP Sterling Planners can retain and invest your transfer in £GBP, thus no need to wait for good exchange rates.  For further details visit Transferring and investing in GBP/Sterling.
Australian Tax  We keep abreast of the latest ATO tax rulings on UK Pension Transfers, thus optimising your tax obligation.
UK Pension Transfer Report/Statement of Advice Our QROPS Statement of Advice is one of the most comprehensive in the industry. Our advice process includes a 1-2 hour meeting with one of the most experienced QROPS specialists in Australia.
Full Service Financial Planning Advice If required by you, Sterling Planners can assist with:

– Retirement Planning

– Investment Portfolio Management

– Personal Risk Insurances

– Home Loans and more.

Sterling Planners are specialists in large UK pension transfer values

David Gooding (Former Management Consultant from a Top Tier Accounting firm), describes why he sought specialist QROPS advice for his own large UK Pension Transfer value (i.e. a lump sum value greater than the current non-concessional contribution cap).  These transfers require special treatment for tax optimisation.

Recent changes to UK Lifetime Allowance limits in conjunction with BCE (Benefit Crystallisation Events) also require specialist advice. Sterling Planners are renowned specialists in tax optimising large UK Pension Transfers. We have decades of experience navigating the complex requirements for tax optimisation and compliance with all the regulations governing lump sum values greater than the current non-concessional contribution (NCC) cap.

Our comprehensive UK Pension Transfer Advice Document evaluates the financial benefit (or not) of transferring your UK pension to Australia, in addition to your estate planning and retirement planning situation, thus it will help you make the best financial decision about whether or not to transfer your UK funds.

If your enquiry relates to a UK State Pension i.e. the Old Age Pension from your national insurance contributions or if you have an unfunded Civil Service Pension e.g. NHS, Teachers, Police, Armed Forces etc.. then our e-book will not be relevant.  You need to contact your UK scheme directly as they are not eligible to transfer to Australia.

For further information please download our FREE UK Pension Transfer E-book or contact our client service team on 02 8904 9793