If you are thinking about transferring money from another country back to New Zealand, make sure you have all the facts before making your decision.
5 things to find out before you transfer
Below are 5 things you need to know before you transfer any pension or superannuation benefits from overseas to New Zealand.
What benefits will you lose when you transfer?
If you’re using a financial adviser to help with the transfer, is the fee set or is it commission-based? If the fee is commission-based, find out how much, and make sure you are comfortable your adviser is acting in your best interest.
Will you be charged any other fees, either by your adviser or the pension or superannuation providers?
Are there any tax implications you need to consider?
Will the age you can access your benefits be different?
If you want to transfer money from your UK pension fund back to New Zealand, you must use a New Zealand Recognised Overseas Pension Scheme (ROPS) - a scheme which has permission to receive transferred UK pension funds. You cannot transfer your UK pension savings into your KiwiSaver scheme.
If you have already transferred your UK pension into a New Zealand ROPS, you may be able to transfer it back to a registered pension scheme in the UK, but the rules around this are complex, including any tax implications, so we strongly recommend you speak to an financial adviser and consider speaking to an international tax adviser.
If you’re in a UK ‘defined benefit’ (DB) pension scheme or fund, transferring your savings to New Zealand can have significant financial and tax implications. Seek financial and tax advice to ensure the transfer is in your best interests.
We’re aware of overseas companies cold calling New Zealand residents and offering UK transfers. This may not be in your best interests. Often, people are offered different ways to invest, special ‘deals’ or opportunities to access their money before 55.
If you’re a New Zealand resident, you can transfer your Australian superannuation savings into your KiwiSaver scheme. If you’re living in Australia permanently, you can also transfer your KiwiSaver savings to an Australian complying superannuation scheme.
Once your pension has been transferred, you cannot transfer it back so we strongly recommend you speak to a financial adviser first. You should also consider speaking to an international tax expert.
If you are a New Zealand resident wanting to transfer pension funds from your country of origin to New Zealand, you need to check whether the laws in your country allow it.
Consider the tax and financial implications before deciding. The IRD's website provides some information on foreign superannuation taxation, but you should also get advice from a financial adviser and an international tax expert.