As you plan to emigrate from the UK to Australia, there are several things you should do correctly. There are several things you need to do including receiving your visa, going through medicals successfully, deciding where to live among many other things. However, one thing you should never forget to think is how to carry out UK pension transfers to Australia. If you fail to think well regarding this issue, you might end up losing a lot of money in the process. You need to be knowledgeable about how the process is undertaken and all the requirements to meet. To ensure that you do not make mistakes during this process, it is right you work with an expert to help you through this process and help save you from all the hassles and stress involved. These tips will also be of great help.
Remember that your UK pensions is an investment
One critical thing to keep in mind is that you can never access your UK pensions until you attain the retirement age. You might have been perfect when it comes to paying taxes, but note that your pensions are locked as long term savings. It is impossible to use the pensions for your day to day expenses. Therefore, as you immigrate to Australia, you should put all the strategies to ensure that you do not lose your lifetime savings.
Not all UK pensions are transferable to Australia
There is a notion among many people that they can transfer all their UK pensions to Australia. However, this is not the case. UK state pensions can never be transferred to Australia. You should also know that there are also specific requirements personal pensions should meet to allow their transfer to Australia. It is essential you understand all these requirements and ensure you adhere to them to be allowed to go through the UK Pension Transfers to Australia process successfully.
The transfers is not always for your good
At times the HWM UK pensions to Australia might not always be for your best interest. The Australian and UK tax effect might have adverse effects on your pensions. The effects require that up to 30 per cent of the schemes cannot be transferred. If you decide to transfer such schemes, it means that you forego great benefits such as a guaranteed annuity, fund penalties and insurances. Besides, the differences in exchange rates, poor growth of fund and tax exemptions on your type of visa should also be considered. All these factors can have positive or negative effects on your UK pensions transfer to Australia.
Like any other process, you need to start planning how to transfer your UK pension to Australia well in advance. In most cases six months is the time limit it takes for their UK pensions to be transferred to Australia. If it takes more time beyond this, you might get an extra tax liability. In a real sense, it might take nine or even more time for the transfer to be completed, but put the right efforts to have the process completed within six months.