Why Transfer

If you leave your pension fund in the UK:

• Australia will tax pension income received from a UK pension fund;
• Australia will tax the growth component of the lump sum from a UK pension fund (this is free from UK tax);
• Australia may tax the growth of the pension fund in all years before you retire (this does not apply if you are a member of an occupational pension scheme);
• On your death, your spouse and dependants may receive a reduced rate of British pension which will be taxed in Australia – but they may receive nothing dependant on the terms of your UK pension scheme;
• The pension you receive in Australia will fluctuate depending on the exchange rate in force at the time you transfer the money. This could work for you or against you, but definitely leads to uncertainty as to the level of income you will receive during your retirement.
• You may have to pay bank charges each time funds are transferred from the UK to Australia.

If you transfer your pension fund to Australia:

• Exchange rate exposure is eliminated;
• On retirement at the age of 60 you have TAX FREE access to your entire fund;
• You are not required to purchase an annuity, so the value of your fund can continue to grow while you receive a pension;
• On your death, the unused balance of your fund will pass TAX FREE to your nominated beneficiaries.