Transferring Your UK Pension to New Zealand: What you need to know
If you’ve built up pension savings in the UK and now call New Zealand home, you might be wondering whether it makes sense to transfer your UK pension here. For many, it can offer better visibility over their retirement savings and simplify financial planning - but the process is not always straightforward.
Whether a pension transfer is right for you depends on several key factors. Here’s an overview of what’s typically involved and why getting the right advice early on is so important.
Is a Transfer Even Possible?
Not all UK pensions are eligible to be transferred. While some private and workplace pensions can be moved, others - like the UK state pension - cannot. To transfer funds to New Zealand, they generally need to go into a QROPS (Qualifying Recognised Overseas Pension Scheme). Not all KiwiSaver or superannuation schemes meet QROPS criteria, so it’s important to assess your options carefully.
Why Advice Matters
UK pension transfers come with layers of complexity, from international tax rules to scheme-specific paperwork. Timing, residency status, and the type of pension you hold can all influence the outcome.
This isn’t a process to tackle alone. A specialist adviser who understands both the UK and New Zealand systems can help you avoid costly mistakes and ensure your transfer is structured appropriately for your long-term goals.
What’s Involved in the Process?
While each transfer journey is unique, there are some common steps along the way:
Confirming your eligibility
Choosing the right NZ-based scheme
Coordinating paperwork with UK and NZ providers
Managing documentation and compliance checks
Timing the transfer with tax rules in mind
Each of these stages comes with its own set of requirements, forms, and potential hurdles. Knowing how and when to act can make a significant difference to the outcome — especially when tax rules are involved.
Timing and Tax: What You Need to Consider
Tax can play a big role in determining the value and viability of a transfer. Depending on how long you’ve been in New Zealand and how recently you left the UK, tax liabilities can vary.
Transitional residency rules in New Zealand, as well as the UK’s five-year tax window, are important considerations. Getting the timing wrong could reduce the value of your pension, which is why personalised tax advice is essential before you take the next step.
What Happens at the Other End?
Once your pension has been successfully transferred, your funds can be invested in a way that aligns with your goals - whether that’s a growth-focused strategy or something more conservative. Currency choices, fees, and investment preferences all come into play here.
Is a UK Pension Transfer Right for You?
Transferring a UK pension can offer greater control and alignment with your current financial life in New Zealand. But it’s not the right choice for everyone.
At Compound Wealth, we specialise in helping UK expats navigate this decision with clarity. If you’re considering a transfer, or simply want to understand your options, get in touch. We’ll guide you through what matters — and help you make a confident, informed choice.
Compound Wealth are based in Mount Maunganui, Tauranga and offer KiwiSaver, Investment & Retirement Financial Advice to clients all over New Zealand.
