Over 55 Large Case Transfer2018-04-27T04:50:57+00:00

Over 55 Large Case Transfer

  • Under 55 Transfer - Finsec PTX Adelaide

Like London’s iconic red kiosk, our Over 55 Large Case Transfer service stands out for it’s unique and quality design.

Built on a foundation of knowledge and experience, you will partner with leading experts in; UK pension transfer, QROPS, UK SIPPS, SMSF, retirement and risk strategy for an all considered transfer solution.

So specialised is this advice that many other financial advisers, accounting professionals, SMSF administrators and even a big four bank turn to us for this expertise.

What is a large case transfer?

If your combined UK pension fund values at the date you became resident for tax purposes in Australia exceeds the non-concessional bring forward limit of $300,000, then you will need to navigate the issues associated with a large case transfer.

Large transfers do bring complexity and the considerations are many, but a transfer is not a transaction it requires professional advice.

Strategies such as transferring in tranches will depend on many factors; your fund type, financial situation, contribution caps, work test rules, residency rules, lifetime allowances and outcomes on death to name just a few. Some of these strategies (in extreme circumstances) may even take over a decade to complete, requiring simultaneous management in both Australia and the UK.

A large case transfer strategy will consider:

The cost of not getting expert advice can be huge. In our experience people who do not consult a specialist:

  • May overpay on tax: In particular for Defined Benefit scheme transfers and the growth component of their fund (learn more about Defined Benefit/Final Salary schemes here)
  • Risk an ‘unauthorised payment charge’ (up to 55% of the total transfer value), dependent on how you structure your benefits beyond the initial UK pension transfer.
  • May be unaware of Individual Protection deadlines for securing higher UK Lifetime Allowance Limits.
  • May be unaware of potential Estate Planning advantages within Australian Superannuation.
  • May trigger avoidable tax consequences particularly in accessing your retirement funds.
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The 5 biggest misconceptions of large case transfers

This is certainly true and it might be the case for many but a transfer is not a transaction it requires advice and through the advice process the correct way forward will be uncovered.  Large transfers do bring complexity and the considerations are many; historical values, contribution strategy and UK lifetime allowance limits to name a few.

In some cases we find that deliberately breaking the non-concessional cap is advantageous, yet in others this same strategy could trigger UK tax implications – There is no hard and fast rule, the solution is different for each individual and the key is tailored advice.

We hear this misconception all the time and it has been further amplified with fluctuations following Brexit.

Our belief is, if it makes sense to transfer then you do it straight away.

Too many people have held off ‘waiting for better days’ only to be faced with changes that either forced their hand (at an even higher exchange rates) or in some cases rendered them ineligible to transfer at all.

At FinSec PTX we have a solution in place to transfer the money in sterling into a sterling bank account within the superannuation fund. You can then control exactly when you are going to convert all or some of that money progressively into Australian dollars.

This is the case if you have a Defined Benefit/Final Salary scheme exceeding £30,000 and for certain personal funds with guaranteed annuity rates.

Part of our pension transfer service is to identify if this advice is required and if so, provide the solution via our aligned UK advisors.

It is a time consuming process, we have to navigate legislation in both hemispheres and UK pension schemes are exposed if they make mistakes. As with any institution when there is that fear of loss they need to protect their shareholders and other investors. We are working very closely with the UK schemes and various industry bodies in the UK to reduce timeframes but for some it can remain a lengthy process. Like building a house, we all want it finished today, but its going to take a few months.

Whats more an individual’s pension and superannuation assets are only exceeded by the value of their home. We consider it our responsibility to ensure we take the time to get the advice correct.

This is not a myth, there are very few.

Generally speaking in the pension transfers space their are only a handful of key players, add to this SMSF speciality and the number halves again.

At FinSec we have specialised in both pension transfers and SMSF independently of each other for over 20 years.

My wife and I embarked upon the complicated journey of moving our UK pensions 2 years ago and expected it to take at least another 3 years. One of the very good decisions we made was to use the services of a major Australian Bank who assigned us one of their trained advisors in UK pension transfers and an independent specialist advisor, David Ford from Finsec Partners.  The advice has been excellent and has ensured that we have met the complex but necessary rules that govern UK pensions transfers. My own background is strong in both Corporate Governance and Finance however, I doubt that I could have succeeded in this task without David’s expert advice.

– John, WA

Our over 55 Large Case service includes:

  • A complimentary discussion where together we will identify the issues or gaps that need to be addressed to meet your financial and lifestyle goals and objectives.

  • A Pension Transfer Report (Statement of Advice) that considers your circumstances to determine whether it is appropriate to transfer and why.

  • Initial set-up (including FCA report, Australian UK Pension transfer report, set up SMSF, set up SIPP, register SMSF with ATO & QROPS, execute the UK pension applications and CETV request etc.).

    Connect you with our UK affiliate to obtain specific ‘over 55’ advice and if appropriate assist you in establishing a SIPP and subsequent UK investment advice.

  • Where appropriate:

    • Liase with UK Adviser to effect a rollover from the Defined Benefit scheme provider to UK SIPP.
    • Transfer in tranches (if applicable) to QROPS registered SMSF, being sure to comply with any HMRC reporting and relevant Australian taxation rules. Thereafter assisting with compliance regarding the Australian SMSF process for contribution complexity.
    • Broader advice on consolidating UK pension money with Australian superannuation.
    • Navigate potential restrictions with respect to accessing benefits and ongoing QROPS requirements.

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*Information provided on this website is general in nature and does not constitute financial advice please refer to Disclaimer for further information.