New Zealand is a beautiful country and attracts a lot of tourists and permanent immigrants who want to settle in that beautiful land
. At one point the unemployment rates in this country were very low but the expatriate community likes New Zealand and its progressive government and administration.
After the pension simplification drive in UK in the year 2006, it is now possible for UK pension holders to transfer their pension to QROPS New Zealand.
This could apply to anyone who enjoys a UK pension benefit and now wants to move and retire in New Zealand. Transfers to QROPS New Zealand are normally tax free and all benefits drawn out of the scheme including lump sum are not taxed at the time of withdrawals. This is a great benefit to have especially as one settles down in their sunset years and has very little earning years ahead of them. At such times, every penny saved is an income earned and tax friendly rules come as a bonus to retirees opting for QROPS New Zealand. While most UK pensions can be transferred to QROPS New Zealand, there are a few exceptions like state owned UK pensions and those pension plans where annuities have already been bought upfront. The QROPS New Zealand is approved and accepted by the HMRC, UK and the Actuary processes in New Zealand recognize the HMRC regulations on such transfers and also abide by them.
The transfer to QROPS New Zealand means more tax liability on inheritance and death duties. This also means that the nominees of the residual pension enjoy benefits much after the pensioner has departed. It also means that any large sums taken as superannuation benefits will be available tax free. If one has been outside the UK for five consecutive years they also get to enjoy 40% of the sums in the UK pension as a tax free bullet lump sum.
The schemes are subject to HMRC and the New Zealand actuary laws. The laws and regulations can change anytime. It is always better to seek out the latest information and updated regulations before initiating a UK transfer to QROPS New Zealand or in any other country.