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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