Transferring UK SIPP Pensions

If you have invested in a SIPP Pension (Self Invested Personal Pension) in the UK, you will be pleased to hear that it is entirely possible to transfer it to New Zealand when you emigrate.

And, as with other types of UK pension, transferring your SIPP pension to New Zealand allows you to retain the tax advantages you have enjoyed in the UK which making the most of the enhanced flexibility of the New Zealand pensions system.

One of our preferred New Zealand QROPS pension schemes for transferred UK pension funds operates much like a UK SIPP, in that you have a very wide range of investments to choose from and that your retirement income will depend on your investment’s performance. At NZ $50,000, the entry level is much lower than the better UK SIPPs, which are pretty much exclusively marketed to high net worth individuals. The charges are comparable to the major UK SIPPs, and tax is calculated for you. And in a New Zealand pension fund, you can take your retirement benefits as tax paid, with no further tax to pay.

As mentioned above, New Zealanders enjoy much more flexibility in when they access their retirement savings than Brits. Our preferred fund is one of the few pension schemes in New Zealand that have both QROPS approval from the HMRC and the wide investment choice of a UK SIPP.

The range of assets permitted in a SIPP by HMRC includes:

• Stocks and shares listed on a recognised exchange
• Futures and options traded on recognised futures exchange
• Authorised UK unit trusts and OEICs and other UCITS funds
• Unauthorised unit trusts that don't invest in residential property
• Investment trusts subject to FSA regulation
• Listed Property Trusts
• Unitised insurance funds from EU insurers and IPAs
• Deposits and deposit interests
• Commercial property (inc. hotel rooms)
• Ground rents
• Traded endowments policies
• Derivatives products such as a Contract for difference (CFD)

Our preferred New Zealand pension scheme will accept most of the above investments, but we will discuss these with you on an individual basis. The scheme administrators will help you to transfer your assets over to your New Zealand pension scheme with a minimum of fuss. The scheme can also hold cash and investments in GBPs, US$, NZ$, AU$ and €’s.

A word of warning on UK SIPPs –

Some Brits we have come across have been advised to “consolidate” their UK personal and occupational pensions into a UK SIPP before they emigrate to New Zealand. This is not an essential step in transferring your pensions to New Zealand, and it is likely to incur unnecessary additional expenses.

It really does pay to get expert advice on your emigration finances – at Broadbase International we are committed to providing you with expert financial advice for your unique situation, and we will not advise you to transfer your pension to New Zealand if it is not in your best interests to do so. Please contact us for a no-obligation consultation with our pension transfer experts if you would like to investigate bringing your SIPP pension over to New Zealand.

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.