Transferring Pension to Oz or cashing in?

M

maximill

Guest
We are thinking of emigrating to Australia. I am in a contributory pension scheme at the moment. I understand that I cannot cash the pension in if I stay in Ireland until I retire. Is it possible to cash it in if I move to Australia? Or can I transfer it into a fund over there?

Will this cost a lot of money either way? If I do manage to leave the country I don't fancy leaving my money here for the Government to dip into whenever it feels like
 
Hi Maximill, you'll hear a lot of nonsense about transferring your pension pot abroad not being possible. I guess even the trustees of your exisiting pension scheme will tell you its not possible the 1st time you ask, but persevere.

It is possible as long as the fund you are transferring to operates on substantially the same basis as your exisiting one. UK, Austrailia and NZ all operate schemes similar enough to a lot of Irish ones that it should be possible to find something comparable.

You then need to press the trustees of the existing scheme to approve a transfer. They are required by law to insure what they are transferring to operates on the same basis as their scheme. It doesnt have to be exactly the same but it should prevent access to funds before a certain age, grow through investment in similar asset classes and provide similar benefits on retirement.

There are some UK funds already pre-approved to allow UK-IE transfers and visa versa, I would guess there should be some for AU-IE transfer too, but none that I'd be familiar with directly.

The costs involved should be minimal as once you have done the leg work to find a comparable fund in AU the trustees operate a transfer in exactly the same way they would if you were moving to another Irish pension scheme. Ultimately the trustees must decide if they are willing to allow it. If you find something so close as to be a good match then they have little reason to deny a transfer. But trustees can be a lazy bunch of feckers. If they say no then file a grievence using the internal grievence process that all schemes should have.
 
Last edited:
What age are you? If you are over 50 you can transfer the value to a Buy Out Bond and then cash in some or all of it depending on your salary and service. If you have less than 2 years service you can get a refund of your own contributions subject to 20% tax.
 
If you are emigrating to Australia you can transfer your private pension to an Eligible Rollover Superannuation Fund. There are funds available where you can just lodge the lump sum you transfer and park it there until you decide what you want to do with it. Superannuation/pension is compulsory under legislation in Australia so when you start working both you and your new employer will pay into a superannuation fund for your retirement. When your employer has established a super fund for you...you can then roll the parked lump sum into your new fund if you wish. The minimum age you can draw down your super (including the money you transfer from Ireland) is 55 years old.
It's called Preservation Age in Oz. Preservation age is at least 55 years of age and can be up to 60 years of age. Anyone born before 1 July 1960, has a preservation age of 55 years. I have added two links to give you an idea of how superannuation works in Australia.
www.amp.com.au/wps/portal/au/AMPAUP...toid=53a4986d56e32210VgnVCM10000083d20d0aRCRD
http://www.superguide.com.au/superannuation-topics/preservation-age
 
Pension release

Hi Maximill,

I am not sure about moving your pension to Australia but you can cash it in, I did mine about 3mths ago and it was very easy.
 
koscienly said:
Hi Maximill,

I am not sure about moving your pension to Australia but you can cash it in, I did mine about 3mths ago and it was very easy.
Click to expand...

For information, be aware of the following: -

  • The practice of unlocking pensions by transferring to other jurisdictions is known as Trust Busting. It's one that may end up being retrospectively outlawed, leaving those that participated with big tax bills. See .
  • There's no protection of your fund.
  • The intermediary takes a whopping commission - typically 10 - 15% of the fund for facilitating this.
  • Since registering on Askaboutmoney.com, koscienly has only ever posted about this. Draw your own conclusions.
 
Dave Vanian said:
For information, be aware of the following: -

  • The practice of unlocking pensions by transferring to other jurisdictions is known as Trust Busting. It's one that may end up being retrospectively outlawed, leaving those that participated with big tax bills. See .
  • There's no protection of your fund.
  • The intermediary takes a whopping commission - typically 10 - 15% of the fund for facilitating this.
  • Since registering on Askaboutmoney.com, koscienly has only ever posted about this. Draw your own conclusions.
Click to expand...
The above information could be misleading for the OP. If he is going to emigrate to Australia as he states and wishes to transfer his pension there.... his funds are protected by legislation.....even from himself.....until he reaches retirement age. There are no fees charged by any intermediary. I worked in superannuation in Sydney for a number of years and the industry there is very heavily regulated.
 
Ann1 said:
The above information could be misleading for the OP. If he is going to emigrate to Australia as he states and wishes to transfer his pension there.... his funds are protected by legislation.....even from himself.....until he reaches retirement age. There are no fees charged by any intermediary. I worked in superannuation in Sydney for a number of years and the industry there is very heavily regulated.
Click to expand...

Hi Ann1,

Sorry - not my intention to mislead. I wasn't referring to the perfectly legitimate practice of transferring a pension fund to Australia if one relocates to Australia. As you explained, this is possible, well-regulated etc.

What koscienly (and subsequently I) was referring to was the far less advisable practice of transferring one's pension fund to a different jurisdiction (not Australia) to avail of easy-going local rules as to access. This is sold on the basis that one can access one's fund now, rather than at retirement. I was pointing out the huge risks and costs involved in doing this.

Regards, DV
 
DV.....I understand where you are coming from regarding Trust Busting but I was concerned the OP may have drawn the conclusion that there were fees and tax implications when transferring pension funds to Australia.
Also it would be nice for the people of Ireland in the present financial crisis if the Irish Government passed legislation where holders of private pensions could access their funds under Financial Hardship circumstances....... in order to save their family homes from being repossessed. This is possible under Australian law. The fact that the Irish government have not acted on this means more Irish people... as you say.... may be putting their funds at risk in trying to access their funds through other channels
 
I'm interested to read these comments. I posted a thread recently asking advice about transferring a Pension (and myself) abroad, but it generated little interest.

My new home is in SE Asia, not Australia. From my dealings with Aussies I gather it to be a quite high tax destination, therefore I've never considered it for a Pension Transfer.

Have any of you got experience in Hong Kong or Singapore, or any other country in that region? Are any of you still plying a trade as Pensions/Wealth Advisors?
How about you Ann1?
 
Hi Starbuck......Sorry I only have knowledge of Australian Super....because I lived and worked there for many years. To my knowledge you have to be a resident or citizen of Australia to set up a Superannuation Fund there. As far as tax goes....there is no tax penalty on drawing down Super/Pension when you reach Preservation Age....55 years to 60 years.
As far as plying my trade....unfortunately my title would now come under...lady of leisure...
 
Thank you all for your replies, I haven't been on the site in quite a while because I wasn't sure about the visa to AU. But now we look like getting it by August so I'll be heading over in October.

Judging by your response Ann1, would I be right in thinking that is possible without too many penalties. Is it possible to transfer the fund before I move or is that against the law here?

  • What costs are typically involved?
  • Do you need an Australian address first?
  • Can I do it online or do I need to ring somebody?
 
Maximill, if you're emigrating it would seem to make a lot of sense to transfer your pension to Oz, just make sure you do it through someone reputable.

The other option of the 'trust bursting' was discussed on AAM quite a while back, it involved routing the money through a few countries and losing a lot of it along the way due to currency and whopping fees. Something very dodgy about this methinks.

If you do succed in transferring your pension you might post from the other side to let us know how you get on, it would be helpful to others. And best of luck in your new life.
 
Hi Max

best of luck. Have you had any luck with finding a comparable pension product in Oz that the Trustees of the Irish pension are comfortable moving the funds on your behalf
 
maximill said:
Thank you all for your replies, I haven't been on the site in quite a while because I wasn't sure about the visa to AU. But now we look like getting it by August so I'll be heading over in October.

Judging by your response Ann1, would I be right in thinking that is possible without too many penalties. Is it possible to transfer the fund before I move or is that against the law here?

  • What costs are typically involved?
  • Do you need an Australian address first?
  • Can I do it online or do I need to ring somebody?
Click to expand...

Congratulations Maximil on getting your visa.

Your first step would be to contact your pension provider here in Ireland and confirm that they will allow the transfer/rollover and if so what documentation they require to allow the transfer to take place. They may wish to see proof of permanent residency....a 457 visa may not be sufficient.

In the past one had to have an address in Australia to open an Eligible Rollover Fund but you could ring customer service in the link of my first post and ask to speak with International Transfers...they will know what the present legislation is.

Also when you arrive in Australia you will only have 6 months to process the transfer if you wish the entire amount to be treated as a nonconcessional contribution.
[broken link removed]
 
Thanks guys

I will contact the trustees a little closer to the time we intend to go, they are "friendly" with my employers and I haven't told them yet. All very cloak and dagger still. Anyway, I still have to get the visa "in my hand" so to speak I hope to be off to Perth at the end of Sept.

Once I have the visa confirmation I will contact them. It's a 176 State sponsored visa to WA so hopefully this will be enough to convince both the trustees and the ERF people.

I'll let you all know how I get on

:)
 
You must log in or register to reply here.
Back
Top