General Information – Pensions
In New Zealand, what the British know as Pension Schemes are called Superannuation Schemes!
There are a number of (usually larger) employers in NZ who will offer some form of company superannuation scheme (just like an employer scheme within the UK that you may have been part of) but they are required, by law, to offer all employees access to a Kiwisaver Plan and if you, the employee, joining such a Kiwisaver scheme they must pay a minimum of 3% of your salary into the plan….as must you!
Whilst we cover UK Pension Transfers elsewhere on this website it is prudent to state that many UK Company and Personal Pensions can be transferred into NZ into what are known as QROPS schemes. The UK HMRC set the rules under which such transfers are to be made and what tax issues there may be for you to understand (with our expertise) and transferring must be a viable option to consider.
In addition, after you have been in NZ for 4 years the NZ IRD will look to tax your pension benefits held off-shore. So, whilst you have a 4 year window to consider transferring you need to be aware that transfers can take anywhere from 3 to 9 months to complete so do not leave it too late……..in simple terms; when you see NZ as your long term home (i.e. to at least age 55) then that is the time to look at transferring benefits!
motivating our clients to undertake any Retirement Planning processes is one of our greatest challenges – simply remember that, whether you like it or not,
THE CLOCK IS TICKING
toward retirement and putting in place some financial plans to allow you to retire when you want with the finances you want/need means planning…..and the
SOONER THE BETTER!
So, you may have transferred your UK pension benefits and be accumulating either/both Kiwisaver/Company superannuation benefits……BUT…..are they going to get you to where you want to be at the age you wish to retire?
If you are an existing client of BritsNZ Ltd, on the financial side of things, we offer a FREE of charge Retirement Planning review service where we look at what age you want to retire, look at what you want to do in retirement, look at your cash needs and your income needs and then look at how close you are (currently) to achieving your goals. Our calculations are based on conservative estimates of growth and take account of any transferred benefits, Kiwisaver benefits and NZ State pension benefits.
The aim is to see if you will hit the fund target you need to meet your retirement plans and allow you to make some decisions on planning strategy from a position of knowledge.
For more information about our process please contact us on firstname.lastname@example.org – if you are not an existing client then by all means still contact us and we will quote our fee for our Retirement Planning report!
REMEMBER it is NEVER too late to start planning….and…..“If you fail to plan, you are planning to fail.” Benjamin Franklin
• Your UK State pension will remain in the UK and will underpin any NZ State pension – you will not lose what you have accumulated
• Your UK pension is payable from the same age as it would have been if you had stayed in the UK and can be paid either direct to a UK or NZ bank account or through the Governmentally agreed system using the NZ PAYE facility
• You will pay tax on your pension here in NZ
• You will become entitled to a full NZ State pension [underpinned by the UK State benefits] by working here for 10 years with at least 5 of those being after age 55