UK Pension Transfers - Advice and Service

[Andrew from Vista Financial]

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

 

http://www.pomsinoz.com/forum/money-finance/216138-uk-pension-transfers-ban-update.html

 

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.

 

 

Kind Regards

 

Andy

Edited January 30, 2015 by Andrew from Vista Financial
Post amended to better reflect our service

[SimonH]

Hi Andy, just wondering if you provide regulated advice on whether a final salary pension should be transferred? My UK adviser once gave me a "critical yield" do you also do that?. Plus do you also calculate any tax due? I heard it can be really difficult. Cheers!

[dudleycat]

Hi Andy,

 

A timely reminder of your services, thank you!

Myself and my husband have just received our Permanant visa's (190) and plan to make the move around April/May next year. I will need some advice prior to this with regards to a final salary pension scheme that i have here in the UK and the pros/cons of transferring this to Australia.

We are coming out to Adelaide for a reccie from the 3rd Dec to 13th Jan, would it be a good idea to organise a preliminary appointment with you before potentially going ahead with the SOA? If so, do you charge for this service?

 

Thanks!

[Andrew from Vista Financial]

Hi Andy, just wondering if you provide regulated advice on whether a final salary pension should be transferred? My UK adviser once gave me a "critical yield" do you also do that?. Plus do you also calculate any tax due? I heard it can be really difficult. Cheers!

 

Hi Simon

 

Thanks for your questions.

 

Firstly, my advice is regulated as I am an Authorised Representative here in Australia.

 

Unfortunately with a ‘Critical Yield’ (although nowadays it is a Transfer Value Analysis (TVAS) that UK Advisers must carry out when looking at providing Pension Transfer Advice) it is not as relevant for a transfer to Australia due to the fact that the systems are very different, one example being generally UK Pension income is taxable in Australia whereas income from Superannuation is tax-free (there are also many other differences).

 

The modelling that I carry out is far more comprehensive and relevant than just having a TVAS (formerly Critical Yield) carried out as it factors in both systems and how the UK Pension would fit into your retirement left where is against being transferred to Australia accounting for the differences.

 

We also advise on the tax implications in relation to transferring pensions and this is also factored in to our modelling. We follow up every case with the ATO in relation to the tax liability and have a Private Ruling placed on file.

 

I hope this answers your questions.

 

Kind regards

 

Andy

[Andrew from Vista Financial]

Hi Andy,

 

A timely reminder of your services, thank you!

Myself and my husband have just received our Permanant visa's (190) and plan to make the move around April/May next year. I will need some advice prior to this with regards to a final salary pension scheme that i have here in the UK and the pros/cons of transferring this to Australia.

We are coming out to Adelaide for a reccie from the 3rd Dec to 13th Jan, would it be a good idea to organise a preliminary appointment with you before potentially going ahead with the SOA? If so, do you charge for this service?

 

Thanks!

 

Hi dudleycat

 

Congratulations on obtaining your permanent visas!

 

My advice to people considering transferring UK Pensions is always to wait until you have settled in Australia and have the intention to remain before embarking on UK Pension Transfer Advice.

 

The main reason for this being that once a Pension is transferred to Oz and in the Superannuation system it generally must remain there until retirement.

 

That said there seems to be a bit of a sticky situation at the moment for people that do have certain final salary schemes as per my first post (ban on UK Pension Transfers hyperlink) being that people may not have the option after April next year.

 

Actually your reccie may prove to be quite timely as we are expecting further information from the UK from 3 December in relation to overseas Pension Transfers.

 

I do offer initial consultations at our cost in the first instance and so it may well be appropriate for us to keep in touch and possibly meet up for a brief consult whilst you are over on the reccie.

 

Perhaps you could PM me your email address (alternatively email me, email in signature) so that something can be arranged)?

 

Kind regards

 

Andy

[Adrian]

Hi Andrew

 

I have a pension with Zurich in the UK, it was left over from a pension mortgage I used to have. I have not added to it since coming to Australia, just left it to accumulate.

I am not sure of the rules about what I can do with the pension (Transfer it to Aus, put it into my super etc.) It seems like a minefield and I am looking for advice on what to do.

How do I go about it? I have been in Adelaide 20 years now not sure how that affects it, I am also now an Australian citizen.

Regards

Adrian

[markon22]

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Thanks