# U.K. Pension transfer



## Cambridgelife (Oct 18, 2016)

Hi 
I'm looking to move over a smallish pension of about £32,000 into one of the qrops schemes and I'm looking for some advice/feedback on costs/service. I have been in NZ for 3 years 10 months and a permanent resident for just over 3 years. I think I have a basic knowledge of tax implications at the moment but need to see if anyone in similar circumstances has moved a pension over and the costs involved. Also any recommendations would be appreciated. I should have said I'm 47 and in kiwi saver and don't intend returning to the uk.

Andy


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## escapedtonz (Apr 6, 2012)

Hi,
We transferred both of ours over in early 2015 and in to a QROPS scheme called iSelect Superannuation I think. 
We started the process July 2014 as in general it can take 4-6 months to be completed as there's a lot to think about and a lot of paperwork to complete and since the wife's pension was an NHS pension and they had informed the industry they would halt transfers to QROPS schemes from the end of that financial year (April 2015 cut off) we needed to get the application in before this to ensure the NHS would transfer the pension.
Other than that we were taken through it step by step by a financial adviser in Christchurch who specializes in Pension transfers from overseas and knows all the rules and the tax implications etc.
His normal commission was 5.0% but he did it for half the price 2.5% since he was doing it for two people. That is a percentage of the transferred amount so on receipt of the funds from the UK Pension, he as the agent reduces what is deposited in your QROPS by his fee so there are no up front charges to your pocket as the costs come out of the scheme funds. In our case we had a total of around $1.2M so his cut was pretty substantial even at half his usual rate, circa 30 grand!!!
Since the transfer this chap also manages our investment portfolio and continually reports on performance and advises tweaks along the way to maximize returns. Since we did the transfer and as advised our portfolio has lost probably around $70k, but this is due to initial set up costs, application and administration fees for each type of investment and because we still hold the majority of investments in GBP's and not NZ$'s and we all know the pound has been hammered since the beginning of 2016 when the Brexit thing was announced. 
We still have 20 years until we are at retirement age so there is plenty time for the returns to start growing and surpass our original investment and as soon as the exchange rate becomes favorable again, which it will, we'll transfer everything into NZ$.

I'll send you a PM with his details as I would recommend him.


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## albion99 (Oct 21, 2016)

*UK pension transfer*

I came across this site having received a Google Alert and feel I have to comment, although not a member of the site.

A 2.5% fee for a transfer of that size is in my opinion high, particularly totaling $30k. As a comparison, I charge my clients around 1% maximum for that sort of amount 

When the member, says that he has invested in GBP denominated investments hence the fall of $70,000, I presume he means UK Investment Trusts. If so, as these are not generally hedged back to the Pound, most of these have in fact benefited from the fall in the Pound and have risen in value, so try to get an understanding of why your portfolio has fallen as this may instead be because of GBP cash that you may be holding still.

To anyone looking to transfer, ensure that you get an explanation not only of the benefits of a transfer but also the drawbacks, so you get a balanced view

Hope that is of some help


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## escapedtonz (Apr 6, 2012)

albion99 said:


> I came across this site having received a Google Alert and feel I have to comment, although not a member of the site.
> 
> A 2.5% fee for a transfer of that size is in my opinion high, particularly totaling $30k. As a comparison, I charge my clients around 1% maximum for that sort of amount
> 
> ...


You're a member now

Yeah didn't research that deep in to pension transfer charges. We had originally had a couple of reports done by one of the specific pension transfer outfits and their costs were even higher so when the particular one I mentioned halved the commission I was happy even though felt it was a considerable amount of cash for the service. It's on par with an estate agent 

As far as I remember we aren't investing in anything in or associated with the UK ?
You got me thinking now though so will have a look through my portfolio. 
Since the exchange rate UK to NZ was pretty poor when the pension actually transferred we decided to retain the funds in GBP's so we didn't lose out on the exchange rate. As far as I know the majority of the investments are still held in GBP's with only a few having to be in NZ $.
As I said we are waiting for the exchange rate to be in our favour again before we exchange fully in to NZ $.
We have had thorough explanations of why our portfolios have lost money since we invested here and again will have to go back over our 6 monthly reports to see the actual reason given.


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## albion99 (Oct 21, 2016)

UK investment Trusts don't have to invest in UK companies and many are global investments. They provide a means of being able to start to get invested and grow your investment and without having to convert from GBP at current exchange rates.

For example, UKIT's can form the international equities part of a portfolio

Keeping all in GBP cash means you will probably be receiving nil interest


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## miss_chives (Oct 24, 2016)

Hi Andy

I'd recommend giving Tony Chamberlain at GBPensions a call. He's such a gentleman. He handled my and my husband's pension transfers, and we got on so well that I actually do some freelance work for him now. 
***Details deleted. Sorry. Rules are rules. No personal details on the forum and no advertising***
Use the PM facility for stuff like this or become a Premium member to advertise in the Market Place.


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## miss_chives (Oct 24, 2016)

No worries. I did read the Community Rules and I wasn't quite sure how specific I was allowed to be with my recommendation. Thanks for editing appropriately.


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## escapedtonz (Apr 6, 2012)

Got it wrong. The agent commission was 1.25% not as I previously stated. I'm a bit happier now


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