Our Preferred New Zealand QROPS

Our preferred NZ pension schemes for UK pension transfers offer you an excellent range of investment options. Below we have profiled two of our favourites New Zealand QROPS.

We'd be more specific about the fund names, but due to updates to the Securities Markets Act 1988, we need to have sent you our Disclosure Statements before we can give you these details. If you are interested, we suggest you send off for a free copy of our UK Pensions Guide, which will come complete with both the Disclosure Statements and the specifics of the pension schemes. 

1. The first of our preferred New Zealand QROPS can give you the wide range of investment options of a UK SIPP (Self Invested Personal Pension) along with the flexibility of a New Zealand pension fund.

Broadbase International Ltd is one of only a handful of impartial brokers in New Zealand providing access to this investment option to UK migrants transferring their pensions.

We like this scheme as it offers the following features:

• It can accept GBP sterling and hold the funds in GBP sterling until appropriate to change it into NZ$ - this allows you to wait for a good exchange rate, while still earning a competitive rate of interest. When you are ready to convert your sterling into NZ$, you just need to make a phone call to get your transfer under way.
• You may be able to access your pension fund prior to retirement date - for the first 5 complete tax years after you leave the UK, you are subject to the requirements laid down by HMRC for QROPS approved overseas pension funds. But once you are outside the scope of QROPS, you are subject to the rules of the scheme, which are very flexible both in terms of a low retirement age and access to your funds.
• You can choose from literally thousands of investment products, including:

1. Cash accounts in Pounds Sterling, US Dollars, New Zealand Dollars and Australian Dollars (Euros may also be held in a cash account, but only for amounts of over €100,000).
2. Term deposits in various currencies, including Pounds Sterling, US Dollars, New Zealand Dollars and Australian Dollars.
3. Managed funds and unit trusts (NZ and Offshore)
4. Government stock
5. Capital notes
6. Corporate bonds and other fixed interest investments
7. NZ and international equities
8. Direct ownership of residential and commercial property
9. Listed property trusts
10. Individual assets

• A dedicated investment adviser monitors your investments – your adviser is available to answer your questions, offer advice and recommendations, and provide you with a personalised investment service.
• The scheme has a preferred list of investments that they choose based on rigorous independent research, or you can nominate your own investments - or even keep your fund predominantly in cash. You can be as active or as hands-off as you choose.
• Reasonable ongoing fees of 1.65%p.a. of funds under management. These fees are a tax-deductible expense of your individual fund. In addition, you will be charged any expenses directly relating to your fund, including legal fees, audit and accounting fees, issue expenses and any costs relating to the sale or purchase of investments. Any commission or brokerage received in relation to your investments in your fund will be refunded to your fund.
• Low minimum investment of NZ$50,000
• You can access 40% of your fund after you have been outside the UK for 5 complete UK tax years. The remaining portion of your fund will need to remain invested in your fund for 3 years. An early withdrawal fee may apply if you withdraw your funds (outside of the QROPS 5-year minimum) within 3 years.
• Has Qualifying Recognised Overseas Pension Scheme (QROPS) status granted by HMRC in the UK, and can accept UK pension transfers with no tax charge applying to the transfer.
• The scheme is open to non-NZ residents.
• You can view your investment portfolio online, and you will receive a statement of financial performance and a schedule of your investments every 6 months.
• The New Zealand tax on your fund is calculated for you.

2. The second of our favourite New Zealand QROPS offers access to an actively managed investment with the potential for excellent returns over time. With a NZ$10,000 minimum investment it may be particularly appropriate if you have a smaller pension fund.

With our second preferred scheme there are a number of investment portfolio options – Conservative, Balanced, Growth, High Growth and Income. These portfolios are compiled from carefully chosen investment funds selected by respected independent investment researchers JMIS.

The performance of these portfolios is continually monitored by JMIS, and automatically re-weighted on a quarterly basis as market conditions change. In addition they have a preferred list of investments that can be chosen on an individual basis to make a personalised portfolio.

The scheme can accept your transferred pension and hold the funds in a GBP sterling account, allowing you to wait for a good exchange rate. Ongoing fees are a reasonable 1.65%p.a. of funds under management, deducted monthly.

There is a minimum retirement age of 55 years with this scheme. Access to your funds before retirement age is more restrictive than our first preferred scheme, but outside the 5-year QROPS reporting period the fund access is still quite generous.

Read on to find out more about how long pension transfers take from start to finish, and what the process entails.

Please fee free to contact us if you have any questions about your UK pensions, and don't forget to order your free copy of our comprehensive UK Pension Guide.