Experts from Australia can transfer their pension income to the UK. However, over the years, the rules for oversea pension transfers to the UK have grown stricter. It is important that you understand all the requirements to be followed so that your oversea pension is approved in the UK.

Advantages of transferring your pension to the UK

Experts relocating to the UK have a lot to gain from UK pension schemes. To begin with, it is possible to consolidate several pension funds into one pension account. Secondly, retirees can also decide how and how much their pension is invested while in the UK. Thirdly, you can also decide which currency you will be withdrawing your pension money in. As a rule of the thumb, it is advisable to withdraw your money in local currency to avoid hefty foreign exchange charges.

Since the UK has several pension providers, you can expect to enjoy low costs in managing your pension account. In addition, you can withdraw up to 30% in lump sum without incurring tax charges on your pension account. Some pension accounts will also allow you to waiver up to 45% in death tax. It is also possible to avoid inheritance tax on pensionable assets if one maintains their overseas address upon death.

UK Pension Australia requirements

You need to have attained the age of 55 years for your pension account to be approved. Anyone below the age of 55 is advised to leave their pensionable income with a trusted financial planner. A financial planner will manage and invest your pension money until you attain the age of 55 when you can access it.

Ensure your Australian super account is recognized by UK’s official pension regulating body, Her Majesty’s Revenue Customs (or HMRC). HMRC governs all pension schemes both in the UK and overseas. You can check with the UK embassy in Australia for the list of approved Super Funds in the UK.

There are two types of pension schemes in the UK: Qualifying Overseas Pension Scheme (or QROPS) and the Self-Managed super funds (or SMSF). QROPS accounts are held by those experts who were legally employed while in Australia. On the other hand, SMSF accounts are for those experts who managed to save on their own and want to transfer their funds abroad.

Bottom-line

If you have asked yourself the question, “How do I transfer my UK pension Australia?” you now have an answer. Just remember to obey all the tax rules that accrue to your pension account once you relocate to the UK. Additionally, research on all local taxation rules so that you understand your obligation and taxation rights as a retiree.