UNDER 55 SIPP TRANSFERS
Our Under 55 Transfer solution is the Queens Guard of UK Pension services, designed to watch over your pension and protect your financial position until a transfer is possible.
Considering all aspects of your unique financial situation, this solution will deploy the strategies needed for future transfer success, so no matter what legislative changes may arise or how your financial position changes over time, you are ready and waiting.
This service includes:
- Contribution Limits
- Current Total Super Balance
- Future QROPS Set-up
- Future transfer strategy options
- Future QROPS Compliance
- Exchange Rate
- Tax implications
- Navigating Legislative change
- Determine historical pension values (Defined Benefit/Final Salary)
- SIPP Set-up
- Investment choice
- Currency conversion strategy
- Future residency
- Overseas transfer charge
- UK Lifetime allowance
- what has been used, what has not
- do you have protection
- Benefit Chrystalisation Events
- SIPP compliance
- Taxation Implications
- Your fund and split transfers
- Unique attributes of your pension scheme
- Navigating Legislative change
- Future consolidating your UK pension proceeds with Australian superannuation assets
- Portfolio construction
- CGT implications
- Retirement planning
- Risk mitigation
- Centrelink allowances
- Estate Planning
- Navigating Legislative change
- Future Superannuation contribution strategy
- Strategies for released funds from super due to excess non-concessional contributions
- Specific goals and objectives
- Health and longevity issues
Why should I worry about my pension now when a transfer is still years away?
Over the last couple of years, we have experienced historically high Cash Equivalent Transfer Values (CETVs). However, the current global macro environment is anything but normal and interest rates around the world are on the rise. It is the perfect time to review your position and determine if it is worth securing at the current value.
Pensions fall into two categories Defined Benefit (Final Salary) or an accumulation style pension (private or occupational plans). Defined Benefit schemes require actuarial calculations to work out the lump sum you are due, to replicate the promise of your (lifetime) pension. This is called a CETV (cash equivalent transfer value).
CETVs fluctuate in-line with cash and bond rates, when rates are low, we see high transfer values and vice-versa.
Currently, we find ourselves in a rising rate environment and we are beginning to see this flow into transfer values (some are affected more than others). With rate hikes predicted to continue (in the fight against global inflation) the expectation is that transfer values may continue to reduce for some time to come. Given this situation, the sooner you review your position by obtaining appropriate advice the better.
The good news is it may be possible to lock-in todays values and crystalise these benefits for a transfer in the future.
Note: any future transfer value will be subject to investment performance over time and ultimately will be impacted by the exchange rate at time of transfer.
Ever changing UK pension legislative environment.
Given many pension transfers are requested by UK tax evaders and Pension scammers, it is little wonder that they remain under constant scrutiny. This coupled with heavy penalties for incorrect transfers has created a difficult environment for genuine transferees.
QROPS changes were introduced in the 2017 UK Budget to help correct the situation, however should they fail to work the popular opinion is that HMRC will decide to remove the constitutional right to a transfer all together.
Under current legislation steps can be taken to protect this right.
Click here to find out why it is worth preserving your right to a transfer:
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How can I protect my ability to transfer if I am under 55 years of age?
If you are under 55 years of age, a Self-Invested Personal Pension (SIPP) can be used as an interim vehicle to control and protect your pension until you are eligible to transfer to Australia. A SIPP can only be recommended and established by an appropriately accredited UK adviser.
A self-invested personal pension is effectively a straightforward UK-based private pension plan with added functionality and flexibility. For example it is possible with some SIPP’s to hold or invest in different currencies. This can be useful in timing conversion from GBP to AUD.
The SIPP functions for you whether you are a UK resident or living overseas and under current rules can be transferred to a QROPS at anytime.
What should I be doing in Australia to maximise my position?
As mentioned previously Defined Benefit schemes are based on an actuarial calculation to determine the CETV of your pension. And, in our experience this value could be far greater than you think, in fact 99% of clients have more pension dollars than they realise click here for more information on defined benefit/final salary schemes.
Although this is good news, it can adversely impact your finances and/or existing planning unless the proper strategies are put in place. Not being able to transfer right away may actually be a blessing in disguise – you have time to adopt a strategy that considers your financial and personal goals and objectives. Once the strategy is in place, it affords you the agility to react should the rules, your needs or your situation change over time.
Getting advice from a transfer specialist in the years before transferring will give you the knowledge, clarity and most importantly the time required to position your affairs for your best transfer in the future.
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