UK Pension Frequently Asked Questions

Here at Diligent Wealth we have all the answers to commonly asked questions, our experts have the knowledge to inform on any query you may have. If you can't find an answer below then please get in touch here.

UK Pension Frequently Asked Questions

Why should I choose Diligent Wealth Management for my UK Pension transfer investments?

We work closely with the best QROPS in the business, ensuring you will be looked after from the first contact, working with you all the way to achieve your retirement and investment goals. Alongside our partners at Charter Square, who have specialised in helping with UK Pension transfers since 2000, and to date have transferred hundreds of millions of pension transfer funds.

With our strong focus on UK Pension transfers, we have done all the hard work for you and only offer you the best solutions available to ensure you are able to achieve your investment goals.

Is transferring my UK Pension is the right decision for my personal circumstances?

Our partners at Charter Square will organise a report specific to you to help you make an informed decision. Charter Square will on your behalf, contact your relevant UK pension provider and find the information necessary to you and report back on their findings. In their reporting you will find the advantages and disadvantages of the transfer and any other important information regarding their recommendations and any fees associated with the transfer. If you want to take the next step, click here.

What information will I need to provide to organise my UK pension transfer?

Our transfer partners at Charter Square will need your authority to contact your UK Pension transfer provider as well as your contact details, UK National Insurance Number, details of your UK Pension Scheme (including the scheme reference number) and the contact details of your last UK employer including date of employment. 

How long does the UK Pension transfer process take? 

Unfortunately no two UK Pension transfers are the same so the length of time can vary typically between two to six months. Often the UK pension transfer paperwork being provided by the UK can be a major hold up.  

What tax will I have to pay when transferring my UK Pension to New Zealand?

Currently there is a four year window from the day you become a New Zealand tax resident that you will be able to make the transfer from the UK to New Zealand without any NZ tax obligations. Once this window closes then the taxable income can vary anywhere between 4.76% to 100% of your pension value, this is assessed at your marginal NZ tax rate. To help eliminate or reduce your tax obligations we recommend talking to a tax specialist and have key professionals we can direct you to in this area.

Can I access the funds from my UK pension once it has been transferred to New Zealand?

At 55 years old you will be able to access a percentage of your pension up to 30% depending on the provider it is invested with. Withdrawal rules are governed by the HMRC (Her Majesty’s Revenue & Customs), and if they are breached, can have serious tax implications so it’s important to ensure that your chosen QROPS aligns with any withdrawal plans you may have. 

What currency will my UK pension arrive into New Zealand in?

Upon arrival, your currency will still be in GBP sterling, we will notify you as soon as the funds arrive and seek your investment direction giving you complete control to take advantage of currency exchange risk. Your funds can remain in GBP as long as you wish or you can choose to transfer a partial amount to NZD enabling you to have the best dollar cost average. There are no fees associated with the frequency of this exchange giving you full peace of mind which ever option you choose.

Can I transfer my UK Pension to a NZ QROPS and hold in GBP currency?

Yes as above you can hold the complete UK pension transfer in GBP sterling giving you complete control of when you exchange to NZD.  

Is my money safe during the transfer process?

Your money is protected by strict rules that are governed in both the UK and New Zealand which are designed to best protect your interests.  

How do I control where my money is invested?

Diligent Wealth Management are here to help guide you with the best option at the time of your UK Pension transfer and have a number of QROPS partners that we have done the hard work on your behalf with, ensuring you are given all of the information and recommendations to be able to make an informed and educated decision on where your UK pension funds will be invested. We will gather information from you and base these recommendations on your retirement planning objectives, risk profile and investment visions. If you would like to find out what our current recommendations are, please get in touch here.

Do I have to stay with the same initial QROPS investment?

No, at Diligent Wealth Management we are constantly looking at what the best QROPS and  investments available are and will recommend if there is another provider where your money can work harder for you. Of course life changes and we will work beside you to help alter the course of your investment to suit your needs as required. With regular reporting from us you will have plenty of opportunity to review how and where your money is invested.

Can I keep contributing to my UK Pension once it is transferred?

Not directly to your pension fund as this may have tax implications, however we have a range of other investment options available to help top up your retirement savings with regular contributions and we can help guide you with the best approach.

What ongoing reporting will I receive?

As well as regular updates from us at Diligent Wealth to keep you informed about how your investment is tracking, we are available to undertake personalised reviews for you as often as you would like – generally this is quarterly, half yearly or annually. Our recommended QROPS providers also give you 24/7 access to online reporting of your investment funds.

We will also regularly keep you update on favourable currency exchange rates for you to take advantage of while holding GBP sterling.

I have other money to invest, what options are available?

At Diligent Wealth we are investment experts and have done the research on your behalf to be able to provide you with specialised advice and a wide range of investment options for lump sum, superannuation and Kiwisaver. Talk to us today to find out how we can make your money work harder for you and help achieve any investment goals you may have. Let us know what you would like to invest here.

What does QROPS stand for?

QROPS stands for “qualifying recognised overseas pension scheme”.