New UK pension regulations came into effect on 6 April 2015 as part of the ‘Freedom & Choice in Pensions’ legislation.
The main changes which is causing difficulties for Australian QROPS/ROPS funds has been the UK Pension Age Test, which states that no one aged below minimum pension age of 55 years can access their retirement benefits, except in the exceptional circumstance of severe ill health.
Unfortunately once the updated QROPS/ROPS listing was published in July 2015 MRC withdrew all (public offer) Australian fund on the QROPS/ROPS list. The removal by HMRC was due to Australian statutory law allowing for payments of superannuation to people under the age of 55 to be paid in certain circumstances – in addition to severe ill health – (e.g. severe financial hardship).
HMRC’s viewed that the statutory law could take precedence over trust law (governing the amended trust deeds of many Australian schemes).
At this stage no UK Pensions are transferable to Australia for individuals under the age of 55.
If you are dissatisfied with the performance of your current UK pension arrangement you may wish to consider a transfer of these benefits to an alternative fund in the UK.
By transferring to an alternative pension arrangement in the UK will give you a greater degree of flexibility and control of your retirement benefits.
You do not have to wait until you are aged 55 to transfer your UK Pension you can take control of your retirement sooner. We at TWA have a solution tailored to meet your needs.
Our solutions have many benefits and advantages;
- Flexibility & Control of investment choices
- Ability to hold in Foreign Currencies
- Eliminate Forex fluctuations & risks
- Amalgamate your UK pension funds to reduce fees and charges
- Avoid CETV fluctuations (Cash Equivalent Transfer Values)
- Funds held on an Australian Platform
- Advice and guidance from an Australian qualified advisor
- Easier to transfer to Australia once you turn 55.