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Understanding the benefits and drawbacks of transferring UK pensions to New Zealand

Many people who migrate to New Zealand decide to bring their pension, too. But a pension transfer is something that should be done carefully.Here are some things to think about.Pros and consThere can be benefits and drawbacks to transferring your money.You might like the idea of having it all in one place, to make it easier to manage. But the exchange rate might not be on your side at the moment.You might want to be able to avoid inheritance tax. But you might wonder about the tax implications h...

Financial planning considerations for retiring in New Zealand

Whatever your circumstances and situation, having a clear idea of your goals and knowing how you plan to get there can help you maximise your financial life.Here are a few things to think about when it comes to financial planning for your New Zealand retirement.Why does it matter?In general, people are living longer, and this often means that they need their financial resources to keep up, too.As you plan your retirement, you’ll need to think about how you will cover the likely costs you might...

KiwiSaver: How early contributions can benefit your retirement

Why start early?The contributions you make early in your investing lifetime have the potential to be some of the most effective.Time is one of the most powerful assets that an investor has.People who make contributions earlier in life often have to put in less of their own money to get the same or even better outcomes than someone who started later, even if they are contributing more on a regular basis.The power of compoundingThat’s because of the power of compounding returns.When you invest i...

How transferring your UK pension to NZ can help maximise your retirement savings

If you’ve moved to New Zealand, you may be wondering whether your UK pension should come with you.In some cases, shifting your pension can help maximise your retirement savings.Here are a few things to think about if you’re considering your next step. Tax-free window When you first move to New Zealand, you have four years after you first become a tax resident in which you can transfer your pension to this country without incurring a New Zealand tax obligation.Provided you move your...

How to choose the right QROPS for your UK pension transfer

These are schemes that meet the requirements of the UK’s HM Revenue and Customs. This means that transfers into them are authorised, and do not attract the potential tax bill that an unauthorised pension transfer can. QROPS have some of the same rules as a UK pension scheme, such as not allowing benefits to be paid before the age of 55. But there is no inheritance tax associated with a New Zealand QROPS and withdrawals are tax-free. When you’re deciding on what the right QROPS migh...

Proposals could ‘change the landscape’ for pension transfers

Two proposals are included in the Taxation Bill which was introduced to Parliament in August.These address the inability of some migrants to pay tax that becomes due in New Zealand on the transfer of their UK pension to a recognised overseas pension scheme (ROPS) without withdrawing money from the fund, which would in itself attract UK tax.It also addresses the existence of “locked in” KiwiSaver funds.What’s changing?The bill proposes a “scheme pays” option that would allow a...

KiwiSaver: Strategies for managing your retirement savings post-65

There are no set options for New Zealanders to regularly draw down the money they have saved in their KiwiSaver funds, once they hit 65 and become eligible to access it.Unlike other countries, where retirees might opt to turn a pension savings nest egg into an annuity, in New Zealand this is not common.That leaves many people trying to manage the drawdown of their retirement savings themselves, or with the help of an adviser. Why does it matter?As KiwiSaver balances grow, people will arrive...

What returning Kiwis need to know about NZ’s tax system

Understanding the New Zealand tax system will be important for your financial planning – to make sure that you know what to expect, that you don’t incur any tax liabilities you weren’t anticipating, and to get the most out of your hard-earned retirement savings.Here are some things to note about how New Zealand taxes UK pensions.Drawing income in New Zealand from a UK investmentIf you have a defined benefit or defined contribution pension scheme in the UK and opt to leave the investment th...

Adapting to life in New Zealand: Financial and lifestyle considerations

You’ve unpacked your suitcases, found your favourite local café and maybe picked out your favourite beach for an evening stroll. Welcome to your new life in New Zealand.Moving to a different country is a hugely exciting experience. Maybe you’re shifting to be closer to family, or to have the sort of retirement you’ve been dreaming of.But there can be the occasional challenge, too, and being prepared for them can really help smooth the transition.Here are a few things to think about. ...

How to spot and avoid pension scams

Scams are a major problem around the world – and getting caught up in one can be devastating.Last year, it was estimated that internationally, people lost more than US$1 trillion in 12 months to scammers.Pension transfers can be a target for scammers who try to convince people to part with some or all of their hard-earned savings, under false pretenses. In some cases, people can end up not only losing money, but being hit with a tax bill, too.Here’s what you need to know to av...

How exchange rates affect your UK pension transfer to New Zealand

If you’ve recently moved to New Zealand from the United Kingdom – or even if you’re just considering it – you will most likely have had to navigate the exchange rate to a certain extent.Visitors or recent arrivals often have a sort of mental tally running to convert prices into the currency they were used to back home.New Zealand’s dollar is currently worth roughly half a British pound – but it moves around constantly.Here is how that can affect your pension transfer.Exchange rate im...

How to adapt to Kiwi culture as a UK ex-pat

From talking with clients over the years, and rounding up advice from our partners Mobile Relocation Experts, here are some tips for UK ex-pats who want to feel at home in New Zealand.Expect to have to adaptComing from the UK, you may not expect a big change. After all, New Zealand and the UK have similar values, a shared history, and the English language. But there are still some differences to consider.Here are some that our UK ex-pat clients often mention:Compared to Europe, where hoppin...

What expats need to know about New Zealand schools

Children are both a big motivator for moving to New Zealand and a big source of worry for expats and returning Kiwis with families. Maybe you’ve visited and admired scenic playgrounds and resilient kids. But what do schools look like for families who’ve relocated to New Zealand? These are my impressions of pre-school and primary education having experienced them with my three American-Kiwi kids.Educational support starts early.Early childhood education, while not compulsory, is widely a...

What is a ROPS and how can you find the right one for you?

If you’ve been thinking about moving a pension to New Zealand, you might have come across references to ROPS.But what is a ROPS, why does it matter, and how can you find the right one for you? What is a ROPS?ROPS stands for recognised overseas pension scheme.Funds that have ROPS status have been determined by HMRC to have similar rules to UK pension schemes – such as limits on when investments can be accessed.British pension-holders are allowed to shift their funds from the UK into thes...

Five key questions about relocating to New Zealand

So you’re thinking about moving to New Zealand.The land of the long white cloud can offer many things to expats – a generally temperate climate, beautiful scenery, and an often more relaxed way of life, to name a few.But how does moving down under work?Here we answer some of the main questions that potential migrants may have.What are the visa requirements?Many people who move to New Zealand secure a job offer first.New Zealand has a skills shortage in many areas. If your occupatio...

Create your ideal retirement in New Zealand

If you’re a British expat planning to spend your retirement years in New Zealand, you may already have a long list of things you’d like to do.Maybe there are places you’d like to see, or family you’d like to spend time with. New Zealand offers an array of opportunities to really make the most of your retirement.Here are a few pointers to keep in mind.Make time for the things you love to doSometimes, retirees say that even though they are no longer working, the days still slip past in a b...

What you need to know about NZ Super

If you are a New Zealand citizen or resident and meet the residence criteria, you can generally access the New Zealand Superannuation when you turn 65. There is no means or income test involved.But if you’ve recently settled in New Zealand, or have spent a lot of your life outside the country, it can be a bit more complicated. Here’s what you need to know.What’s NZ Super?NZ Super, usually referred to by New Zealanders as “the pension”, is paid to people over 65.The rate for couples who...

The emotional aspects of moving abroad

Moving countries can be a really life-changing experience.When you’re planning a shift internationally, you’re often doing so in pursuit of a dream, or new opportunities for yourself or your family.But what about the emotional journey that you take at the same time?Stage one: ExcitementOften, the first stage of moving overseas is excitement. You make a decision to undergo the big move, and start planning.You imagine what your new life might be like, where you might live, what you might ...

Creating a financial plan for your new life in New Zealand

Set some money goalsWhen you moved to New Zealand, you may have drafted up a mental list of things you'd like to make a reality in your new home.Would you like to retire from work early so that you can enjoy what the country has to offer? Or are you planning to buy your dream house by the beach? Maybe you’d like to have enough disposable income available to you to be able to travel to visit family and friends overseas regularly.Whatever your aspirations are, now could be a great time to make a...

How the New Zealand pension system works

New Zealand’s pension system is one of many things that new migrants probably have questions about when they settle in this country.For most New Zealanders, there could be three key streams of income in retirement: NZ Super, their KiwiSaver, and other investments. Here is what you need to know about how they fit together.NZ SuperNew Zealand’s pension system is sometimes referred to as being quite generous by international standards, because it is not means-tested. As long as you meet re...

Homecoming: Checklist for returning Kiwis

What's your timeline?There’s a lot to think about and do in preparation for your return, especially if it’s been a while since you last called New Zealand ‘home’. A good place to start is to have a realistic (and as much as possible, flexible) timeline. When would you like to move – in three months, six months, one year or more? And what do you need to get ready?Check your passportOnce you’ve established a timeframe for action, it’s important to check if your passport is up to...

The step-by-step process for a smooth UK pension transfer

Transferring your pension from the UK to New Zealand can have some benefits. You’ll be able to work with a local adviser, which can make it easier to keep track of what is happening with your investments, there may be tax advantages, and you don’t need to worry about keeping up with what’s happening in terms of rule changes or the activities of an overseas pension manager.But there are some factors that it is important to get expert advice on. Here’s how it works with us.Assessing your n...

Clear, capped UK Pension Transfer fee.

Take a look at our clear-cut, capped transfer feeFor Defined Contribution Schemes: up to $995*For Defined Benefits Schemes: up to $1,495*That’s it: a single, one-off fee that covers our advice and management of the transfer process, from start to finish* for each pension plan being transferred. Capped for confidence. No over-sized transfer fees for large balances.Why this mattersRelocating from the UK to New Zealand, either as an UK ex-pat or a Kiwi returning home, is a big decision. And if yo...

Tips for starting off 2023 on the right (financial) foot

Happy New Year - we hope you feel relaxed and recharged, and ready to tackle 2023. As a new year begins, here are some financial tips to get off to a great start.While we only provide advice on investments, KiwiSaver and UK Pension Transfers, if you have questions about other key aspects of your financial life, we can point you in the right direction. We know and work with experienced mortgage and insurance advisers who, just like us, are committed to clients’ best interests.In the meantime, r...

The best cities for UK ex-pats in New Zealand

Ours may be a small country, population-wise, but when it comes to choosing a place to live, it’s not lacking in variety.From the lush green pastures and golden beaches of the North Island, down to the rugged mountains and pristine lakes of the South Island, there’s a lot for UK ex-pats to enjoy, in and outside our biggest centres. So, if you’re considering moving to New Zealand from the UK, here are some insights from our friends at PSS International Removals and others*, to help you...