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Superannuation translation

I’m an immigrant with a permanent residency visa. Will I be able to transfer my UK pension contributions into a super fund in Australia and also make a lump sum contribution in addition? I have approximately £16,000 to transfer and a lump sum of approximately £30,000.

Pensions from the UK are tricky and a lot of accountants and financial advisers use experts in this field. I know of people who have tried to do the transfers themselves and have found it quite frustrating.

However, I have interrogated the groups who do UK pensions and you can expect to pay up to four per cent for them doing the work. One group takes two per cent locally, while the UK business takes another two per cent.

That said, I’d shop around because I think you could talk these fees down. To find out who does this kind of work, try search engines or Yellow Pages. The websites of these outfits provide a lot of information that should help you.

Generally, a UK person can transfer their UK funds to a local pension, but there are a limited number of funds here that are set up for it. Also, the quicker the better, as delaying it can result in the local tax office hitting you with a 15 per cent tax slug.

I actually spent a few hours talking to various providers after reading their websites and found that generally they were rich in relevant information.

Once your fund is established, depending on your age, you’d be able to make un-deducted contributions to your fund. Given the amounts involved and the need to understand your personal circumstances, it might be in your interest to pay for a financial adviser to help you. The cost compared to what you want to contribute would be relatively small.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

Published on: Thursday, August 05, 2010

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