Are You Brexit Ready?
For many of those with their pensions tied up in UK schemes and looking to get out, the looming threat of a no-deal Brexit, may mean being even more proactive in planning your future in retirement.
Defined contribution (DC) plans are a common UK pension scheme. With DC schemes, they often require individuals to have a high degree of personal responsibility and financial literacy to manage their pension. With busy day-to-day lives, thinking about, actively managing and planning your pension may not be possible for some. Whereas defined benefit (DB) pension schemes are usually arranged by your employer. This also comes with several considerations as your pension can be out of your direct control. With recent cases of the collapse of large companies such as Carillion and BhS, leaving tens of thousands of employee pensions exposed to losses, it is a reminder to be aware of your own pension and alert to potential risks and threats.
UK economists are predicting that a recession may be difficult to avoid, if the UK ‘crashes’ out of the European Union, but due to the uncertain nature of the exit, many economists have so far avoided putting any numbers on the possible financial impact. However, experts are almost in unanimous agreement that even a ‘managed’ exit will have at least temporary negative repercussions for the UK economy, however, just how long these repercussions will last is also highly uncertain.
Transferring your UK pension to a New Zealand QROPS before Brexit means locking in the current rules, fees and taxes, and by living in New Zealand for five consecutive years following your pension transfer, avoid paying the 25% overseas transfer charge. This transition period is set to end in 2020. Until then, it is uncertain how pension transfers to New Zealand will be affected.
If you have been thinking about transferring your UK pension to New Zealand, acting early and getting started may be advisable in order to get the most out of your pension.
The Ranfurly Superannuation Scheme offer access to an award-winning investment manager, as well as an agent that can assist you through the transfer process, prepare transfer forms, and assist in obtaining the required UK and NZ advice that you need. The Ranfurly Superannuation Scheme is QROPS listed on the UK Government Recognised Pension Schemes List.
Get in touch with us, we’d love to hear from you.