AUSTRALIAN TRANSFERS
Australian Pension Transfers
For the right individual under the right circumstances, the transfer of a UK pension(s) to Australia could be beneficial.
Australian Pension Transfers are our core business and very much our main area of specialism. This is enhanced by working with like-minded and carefully selected partners in Australia to provide a comprehensive end-to-end solution.
BENEFITS OF TRANSFERRING YOUR UK PENSION TO AUSTRALIA
A TAX-FREE INCOME IN RETIREMENT
REMOVAL OF CURRENCY RISK BY HOLDING PENSION ASSETS IN AUSTRALIAN DOLLARS
ABILITY TO PASS YOUR PENSION FUND ON DEATH TO A SPOUSE, CHILDREN OR 3RD PARTY IN FULL
FLEXIBILITY TO WITHDRAW INCOME FROM YOUR PENSION TO MATCH YOUR LIFESTYLE INCOME OR LUMP SUM REQUIREMENTS
POTENTIAL TO INCREASE THE MAXIMUM AUSTRALIAN AGE PENSION (STATE PENSION) IN RETIREMENT
SIMPLIFIED ADMINISTRATION IN RETIREMENT
ABILITY TO PASS YOUR PENSION FUND ON DEATH TO A SPOUSE, CHILDREN OR 3RD PARTY IN FULL
AUSTRALIAN PENSION TRANSFERS CONSIDERATIONS
We work jointly with our Australian Pension Partners to assist you in making a fully informed decision, which includes a detailed analysis of the following considerations:
- Tax calculations on transfer to Australia, and a tax comparison with keeping your pension in the UK.
- Your current residency and future plans and any implications (such as a retrospective tax charge upon a change of residency).
- Loss of any guarantees upon transferring a UK Pension.
- Any exit penalties or fund reductions on transfer.
- Meeting your retirement lump sum and / or income requirements including cash flow modelling (taking into consideration your other income and assets).
- Strategy for transferring funds over to Australia, taking into consideration your age, fund size, Australian contribution caps, date of Australian residency, spouses contribution allowances (if applicable) and taxation factors.
- Timing and cost of currency conversion.
- Investment portfolio based upon your risk profile and ethical preferences.
- How a transfer may meet your overall needs and circumstances, balancing up the loss of any guarantees (if applicable) with the importance to you of avoiding currency risk, overall taxation, pension flexibility, longevity and benefits on death.
- A detailed analysis of the transfer value offered by a UK Pension Scheme (Defined Benefit Pensions).
BENEFITS OF AUSTRALIAN PENSION TRANSFERS WITH CRADLE
A detailed analysis of all relevant factors to assess the suitability of a transfer.
A smooth process clearly explained at an initial meeting.
We provide you with an independent analysis of Defined Benefit Pensions via 3rd party videos before we meet with you, allowing you to understand the importance of any guarantees you may be giving up.
A reduced fixed fee for Stage 1 advice, whereby we can rule out a transfer if unsuitable without incurring full transfer fees (Defined Benefit Pensions).
Full control over the timing of currency exchange.
Substantial cost savings on currency exchange.
Reduced administration burden on most transfers to Australia.
100% transparency on all fees including advice, pension, currency exchange and investment related costs (in UK and Australia).
No commission, which in our experience often leads to bias in product recommendations.
FCA Regulated in the UK.
A full detailed advice report taking into consideration all of the key points (in above section) which contains no surprises and re-affirms all previous correspondence.
Technical expertise on both UK and Australian aspects.
We do not take part in any of the practices outlined below.
LET THE BUYER BEWARE
Unethical Practices
Pension transfers (and the subsequent investment of these funds) are an area that has been targeted heavily by scammers and those using unethical practices. While the FCA has tried to crack down there are still companies finding loopholes with the intention of making quick and easy money at the expense (often catastrophically) of the policyholders.
There are often some similarities in behaviour which tends to result in very poor outcomes. These include:
Unethical Practices
Pension transfers (and the subsequent investment of these funds) are an area that has been targeted heavily by scammers and those using unethical practices. While the FCA has tried to crack down there are still companies finding loopholes with the intention of making quick and easy money at the expense (often catastrophically) of the policyholders.
There are often some similarities in behaviour which tends to result in very poor outcomes. These include:
Advice companies having offices in less regulated locations such as Hong Kong or United Arab Emirates.
Overseas Companies partnering with UK equivalent firms that are a further incarnation or offshoot of a company that has previously been closed (a search on the FCA Register of company and individual can help in finding this out).
If the UK firm has a sole purpose of proving pension transfer advice, while the investment advice is to be provided by a company notregulated in the UK or Australia.
When the UK element of the advice is described as “just a formality” or something similar.
When you are told that you do not need to meet the UK adviser.
You are not provided with an Independent Guide to Defined Benefit Transfers (normally be video) prior to you meeting with them.
Where the advice to transfer is “negative” but the adviser insists you should transfer anyway
Where the advice is to transfer out of a Defined Benefit Plan, however there is no intention of ever moving funds into Australia.
Where you receive an advice report which does not take into consideration any Australian Pension factors.
If you are told you can transfer your funds to a UK Self-Invested Personal Pension (SIPP), withdraw them in full, then document to HMRC the withdrawal is income under the Double Tax Treaty and to the Australian Tax Office (ATO) that it is a lump sum payment not subject to income taxes.
For transfers to a UK SIPP, the pension scheme is not on the Origo system and / or has the word “International” in its name. For a pension scheme to be on the Origo system it has to pass a high level of due diligence.
If the adviser cannot explain and document fees and costs of pension advice, investment wrapper costs, investment fund costs, currency exchange costs.
If you are not asked about future residency and the possibility of this changing at some point.
If the fee for pension transfer advice (especially Defined Benefit advice) is surprisingly low, as this would normally suggest that there is a large commission payable on a product (often an Offshore Life Assurance Bond) or Unregulated Funds, both of which can cause huge problems with large on-going costs, exit penalties and Unsuitable and risky investments.
If you have been cold-called and have not contacted the adviser in the first instance or been referred to them by a trusted source.
The above list is by no means exhaustive, however if you do recognise some these behaviours, it is a good indication that something is not right. If in any doubt, please talk to us or an equivalent company.
Our Services
Australian Transfers
Our core business, Australian Pension Transfers are very much our main area of specialism. This is enhanced by working with like-minded and carefully selected partners in Australia to provide a comprehensive end-to-end solution.
New Zealand Transfers
For the right individual under the right circumstances, the New Zealand Pension Transfers could be beneficial. Transfers to Australia and New Zealand are our core business and very much our main area of specialism. This is enhanced by working with like-minded and carefully selected partners in both countries to provide a comprehensive end-to-end solution.
Shell Pensions
Many of our clients have been very high profile at Shell, and almost all want the same level of detailed and transparent advice. Most clients are UK nationals who are now living overseas, and some plan to return to the UK.
UK Resident Services
At Cradle Overseas Pensions, we are committed to providing a comprehensive range of services tailored specifically for UK residents. Our expertise extends to a variety of financial planning areas, ensuring that your financial needs are met with the utmost professionalism and care.
QROPS Pension Reviews
If you have previously transferred from a UK Pension to a Qualifying Recognised Pension Scheme (QROPS), we offer a review service to ascertain if the current QROPS is working for you or whether there may be better alternatives. Alternatives could include a full pension transfer or simply changing the structure of costs and investments within an existing plan.
Self Invested Personal Pensions (SIPPs)
SIPPs, or Self Invested Personal Pensions, offer a flexible way for individuals to manage their retirement savings, providing greater control over investment choices. These pensions are an ideal solution for those who seek to actively engage with and tailor their retirement investments to better align with their long-term financial goals.
OUR MISSION
To achieve the best and most suitable outcome for our clients, whereby both parties are making fully informed decisions, and in a manner where our clients feel at ease through the entire process and comfortable enough to ask us anything whether they feel it is relevant to their financial situation or not.