How to transfer your UK pension to Australia (Updated 2018)
Qualifications to transfer UK pensions to an Australian QROPS Self-Managed Superannuation Fund (SMSF) 55 plus
- Individuals should be 55 years of age and above but not beyond 65 years unless employed in Australia
- Only certain schemes that are not ‘in payment’ can be transferred. They are: private pension schemes, Self-Invested Personal Pensions (SIPPs), and final salary.
- Annuities purchased in the UK as well as UK state pensions cannot be transferred
- Only funded public sector pension funds can be moved
- Australia should be your final destination for retirement
Australian QROPS rules post 1st July 2017
- There is a maximum amount you can contribute in your lifetime which is $1.6 million Australian dollars. If your total super balance is over this then you won’t be able to make any further non-concessional contributions
- A yearly cap of $100,000 for members 65 or over but under 75 is in place. If you are under the age of 65 then there is a bring forward rule of $300,000 over a three-year period
- The QROPS must report to HMRC and comply to the requirements that are set. This is an obligation until 10 years after the date of the transfer into the SMSF.
If you are under the age of 55 and therefore do not yet qualify for a transfer, then there are a few things that you can do. For example, you can:
- Keep your pension in the UK, or
- Transfer to a Self-Invested Personal Pension (SIPP)
Deciding whether the flexibility and control that comes with an SMSF is right for you is certainly worth a lot of thought. Ensure you do not make any spontaneous choices, and know all the options available to you. Consult with a qualified financial adviser that has a comprehensive knowledge of the rules surrounding UK pensions, and ensure that the scheme you are transferring to does not incur any penalties or additional charges.
Read more about transferring your UK Pension to Australia here –> How to transfer your UK pension to Australia (Updated 2017)