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Comparison
of NZ vs. UK pensions
All pensions schemes differ from country
to country. Here is a brief comparison between the UK and New Zealand.
Call Britannia FREE on 0800 857 367 for comparisons with other countries.
UK Pension
- You have very little control over what you
do with your UK pension - state or private.
- Although you can receive a lump sum when you
reach pensionable age, it is limited to 25% of the value of your
investment. Also your pension "dies with you" - that is, the pension
is structured so that payments end when you and your spouse have
died. Nothing is left to pass on to your heirs.
- Bank transfer charges apply to each payment
sent to New Zealand. Exchange rates can also affect the value
of your payments.
- You may have to pay tax twice as your funds
grow: once in the UK, and again in New Zealand. Your final pension
is also taxed at the UK end.
New Zealand Pension
- At age 65 you will receive a state pension
if you have lived in New Zealand for a total of 10 years since
you turned 20 and a total of 5 years since you turned 50.
- You may purchase a pension or arrange a draw down facility with your maturing private pension funds at retirement time, which will be in addition to your NZ state pension entitlement.
- Your pension doesn't have to die with you.
You can set up a pension that will benefit your heirs when you
die.
- Income tax is paid on your pension gains,
but the end benefit is tax free.
- Funds transferred from the UK will be subject to UK regulations prevailing at the time the pension is paid. Any payments which are deemed "unauthorised payments" will be subject to UK tax and penalties".
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