Choosing a NZ QROPS (Qualifying Recognised Overseas Pension Scheme) to manage your UK pension funds could be one of the most important financial decisions you will make.
To help you with your decision, we offer a QROPS through the superannuation section of the New Zealand Retirement Trust (NZRT) that has a simple fee structure, an experienced administration team and the peace of mind that comes with our respected brand.
This might suit you if you're...
- a British expat or returned Kiwi with pension money in the UK
- already with a NZ QROPS provider, but not happy with the fees or service that you’re receiving
Why transfer your UK pension to NZ
Consolidate your assets. Having all your retirement savings in one country makes it a lot easier to control and manage your retirement savings.
Why choose AMP
Simple and competitive pricing. For QROPS accounts we don't charge member, withdrawal, or contribution fees - only an Administration fee of 0.80% per annum, an Investment Management fee of between 0.20% to 0.90% per annum, and costs and expenses incurred, both by us and the fund managers we use, as part of running the NZRT*.
Wide choice of funds. With 28 investment options available and the ability to split your investment mix across up to seven funds, you have exceptional choice and flexibility over your retirement savings.
*Your Adviser may charge a one-off Adviser fee on the initial transferred amount and/or an ongoing service fee. These fees are negotiated between you and your Adviser, so please contact your Adviser for any queries you may have about these fees. The Investment Management fee and any additional costs and expenses will depend on your investment fund choice. All fees may be subject to change. For more information regarding fees please see the 'NZRT Fees and other charges’ document on the AMP website at amp.co.nz/nzrt or talk to your Adviser.
Am I eligible to transfer my UK pension to New Zealand?Show more
You can transfer your UK pension if:
- You are not already receiving income from an annuity purchased with your UK pension funds; and
- Your pension is not a State Pension, unfunded public sector pension or civil service pension; and
- The scheme you are transferring to is a QROPS, such as the NZRT.
Unless you are already a member of the NZRT, you must be in NZ when you apply to transfer your UK pension to NZ.
How long does it take for UK pension funds to be transferred to the AMP NZRT?Show more
This will depend on your current scheme, where it is based and whether all the required information is provided. We expect transfers from the UK to take three - six months and transfers from within NZ to take up to two months. The funds will be allocated to your QROPS account when they are received by the NZRT as cleared funds from your pension provider.
When your UK pension funds are received by the NZRT, you and your Adviser will receive a confirmation letter with the date that the funds were received and the New Zealand dollar amount.
Do I have to pay NZ or UK tax when I transfer my UK pension funds to a NZ QROPS?Show more
From 9 March 2017, some transfers to and from a QROPS may incur a 25% UK tax charge called the Overseas Transfer Charge. This charge will apply if you are not a New Zealand tax resident when you request to transfer your UK pension funds from a UK pension scheme, or from another QROPS if the transfer is made within five full UK tax years of the date you originally transferred your UK pension funds from the UK ('five year period'), and the original transfer was requested on or after 9 March 2017. The charge may also become payable if you cease to be a New Zealand tax resident within the five year period, provided you requested the original transfer on or after 9 March 2017 and the transfer has not previously been subject to the charge.
New Zealand tax is not generally payable if your UK pension funds are transferred to New Zealand within the first four years of you becoming a New Zealand tax resident. However, if transferred after four years of you becoming a New Zealand tax resident, then the transfer may be subject to New Zealand tax. The amount of New Zealand tax payable is dependent on the calculation method used. You can find more information on calculating your New Zealand tax payable on withdrawals from a foreign superannuation scheme by visiting ird.govt.nz/toii/foreign-super/fs-1-april-2014/. We recommend that you obtain advice from a tax specialist.
Once the transfer is complete, New Zealand tax is payable on the income from your investment under the Portfolio Investment Entity (PIE) tax rules. For more information regarding PIE tax, please see the 'NZRT Tax' document on the AMP website at amp.co.nz/nzrt or talk to your adviser.
In some circumstances, UK tax may also be payable when your UK pension funds are withdrawn from a NZ QROPS. We recommend that you obtain advice from a UK tax specialist before making a withdrawal.
How can I withdraw funds from my QROPS account in AMP's NZRT?Show more
You can begin withdrawing funds from your QROPS account once you reach the normal minimum pension age in the UK (currently 55). You can receive the funds in your QROPS account as a one-off payment, as a regular income or as a combination of both.
There may also be circumstances in which you can withdraw your funds before you reach the normal minimum pension age in the UK in the following circumstances:
- If you retire before age 55 due to ill-health, you will be able to withdraw the balance of your QROPS account. To do so you will need to provide evidence from a registered medical practitioner that you are, and will continue to be, incapable of carrying on your occupation because of physical or medical impairment.
- If you retire before age 55 due to serious ill-health and provide evidence from a registered medical practitioner that you are expected to live for less than one year, you will be able to withdraw all of your QROPS account.
- In the case of your death the balance of your QROPS account will be paid to your legal personal representative.
- If we receive a property sharing court order.
- If you transfer your funds to another QROPS.
Can I transfer my UK pension to a KiwiSaver scheme?Show more
No. KiwiSaver schemes do not meet QROPS requirements therefore cannot maintain QROPS status.
To find out more about QROPS, get in contact with your Adviser or call us on 0800 800 267.