New Zealand Defined Benefit Pension Transfer Advice

Once you receive your CETV (cash equivalent transfer value, you have 3 months in which to decide whether you will transfer or not before that offer expires. It’s important that you factor in the time it will take to receive the advice you need. Ideally before or as soon you receive your CETV.

Across the industry it’s not uncommon to hear of defined benefit pension transfers taking up to 6 months, sometimes longer.

Our streamlined process is far quicker than that and we can usually turn around your report and transfer recommendation in around 1 month as long as we have all of the information we need.

It’s an in-depth process, but since you’ll always deal directly with our Qualified Pension Transfer Specialist, there won’t be any unexpected delays from our end.

However, you should be aware that we may need to request additional information from your pension trustees in order to provide you with the advice you need and this may cause delays which are beyond our control.

Delays in the pension transfer advice process could cause you to miss your CETV transfer deadline and will result in you having to request a new transfer value. Transfer values are subject to change so this could work for or against you.

There are a number of other factors that can affect how long a pension transfer might take including:

How quickly you respond to requests for information and how complete that information is.

How quickly Pension trustees respond to requests for information

How quickly pension trustees and associated pension companies action any request for a transfer

Pension trustees and pension providers in general, are not known for their fast turnaround times. Because of this we have a dedicated team who will chase your case daily if needed.

If you're moving your UK pension to New Zealand you'll need to move it to a Recognised Overseas Pension Scheme (ROPS).

Please note that 2020 Financial does not set up overseas pensions. Whilst we can provide the pension transfer advice you need, you will need to work with a New Zealand-based financial advisor in order to set up your New Zealand ROPS and for ongoing person management.

Alternatively, you are free to set up your own ROPS.

Additionally, we recommend that you seek independent tax advice in New Zealand before transferring your pension.

If your Final Salary pension is worth less than £30,000 you are free to transfer your pension yourself without seeking advice.

If you're moving your pension to New Zealand you'll need to have a ROPS (Recognised Overseas Pension Scheme) set up. you can find details on the UK Government website.

If your transfer value is higher than £30,000 then it is a regulatory requirement that you seek ‘appropriate’ advice from a qualified pension transfer specialist. This means they will need to provide you with an in-depth report exploring your suitability to transfer and a personal recommendation to transfer or not.

Your pension scheme will require evidence that you have received the required advice before they will allow you to transfer your pension.

Transferring your Final Salary Pension to a personal pension arrangement may give you access to a large lump sum and offer you the freedom to invest and spend your pension pot as you see fit, but there can be significant costs and fees involved.

The full cost of a Final Salary pension transfer will depend on a number of factors:
● How much your pension is worth
● How much you pay for pension transfer advice,
● The costs of ongoing investments post transfer including any ongoing advice fees.

The value of your pension will usually affect how much a transfer costs you, since most work of this kind operates on a percentage of the value of your fund.

The cost of Pension transfer advice can range from advisor to advisor, so it’s worth shopping around to find the best deal for you, taking into account future advice costs and the costs of recommended products and associated platform charges.

Changes made by the Financial Conduct Authority in 2020 mean that contingent charging has now been banned. This means that you must be charged the same amount for advice whether you are recommended to or choose to transfer or not.

Regardless of who manages your money post-transfer you’ll be subject to investment costs depending on which investment products you choose.

The Financial Conduct Authority are the regulatory body that oversee financial advice in the UK.

It's their job to ensure that consumers get quality financial advice that safeguards their best interests.

If you want to find out what you should be looking for when it comes to receiving financial advice for your defined benefit pension transfer watch this helpful video below.