Under 55 Transfer Solution2018-10-09T05:37:11+00:00

Under 55 Transfer Solution

  • Under 55 Transfer Solution - Queens Guard | FinSec PTX

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 for your best transfer outcomes. This service includes:

Why should I worry about my pension now when a transfer is still years away?

We are Currently Experiencing Historically High Cash Equivalent Transfer Values (CETVs).

Pensions fall into two categories Defined Benefit (Final Salary) or a accumulation style pension (private or occupational plans). Defined Benefit schemes require actuarial calculations to work out the lump sum you are due (to be able to transfer), 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 and so with current rates at an all time low we are seeing historically high transfer values. In the past 10X retirement pension has been the usual, right now we are consistently seeing 20X plus – Effectively your pension could be worth double in todays terms.

The good news is it may be possible to lock-in todays values and crystalise these benefits for a transfer in the future (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).

Lack of popularity with UK fund administrators.

Given many pension transfers have historically been requested by UK tax evaders and Pension scammers, it is little wonder that the right to transfer has come under threat. This coupled with heavy penalties for incorrect transfers has created a difficult environment for genuine transferees.

Recent 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:

Common benefits explained

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 self-invested personal pension is effectively a straightforward UK-based private pension plan with added functionality and flexibility.

Put simply a SIPP is a pension ‘wrapper’, the SIPP administrator ensures the pension structure is in place and that your plan adheres to all of the UK’s rules and regulations surrounding pensions and retirement planning.

The SIPP functions for you whether you are a UK resident or living overseas and under current rules can be converted 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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Our under 55 Transfer 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.

  • Structuring your finances to allow you to successfully navigate the rules of 2 countries and maximise your outcomes.

  • Providing you with retirement projections given the possible different scenarios.

  • Determining if your or your family is exposed to risks associated with the tax treatment of death and total & permanent disablement benefits payable from a UK pension.

  • Reviewing your estate planning arrangements.

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

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

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