British Pound: Friend or foe?

Posted by David Currie on 10/04/17 09:14 | Post topics: Australia, Pensions, QROPS

With the value of the pound having dropped post Brexit, many may be hesitant to exchange their pension into Australian dollars when they transfer it abroad. bdhSterling has a solution to allay such hesitations.

The mighty GBP has depreciated by approximately 20% against the Aussie dollar since June last year when the Brexit was endorsed by the people of Great Britain.

Given that 1 GBP today is worth about 1.62 AUD, as expected, there has been some hesitation in clients wanting to convert their UK pension and non pension wealth into Australian dollars.

If you are over 55 years of age, bdhSterling now has a solution whereby you can still transfer your UK private pension across to Australia. The funds can be retained in pounds sterling and invested into a GBP denominated investment portfolio according to your appetite for risk. This investment can remain in GBP currency until such time that you wish to convert the funds into Australian dollars which offers you as the investor, a greater level of flexibility and control around your currency.

For clients that are under 55 years of age who may have a bias towards investing their super dollars into GBP denominated assets, you will also have the opportunity to invest your Australian super into GBP denominated investments to potentially take advantage of the current drop in the pound.

Our accounting team of choice at The Hopkins Group, may also be able to assist in respect to the taxation treatment of any currency gains/losses that occur within the fund.

If this type of strategy resonates with you, or you would like more information about transferring your pension to Australia, please contact bdhSterling.

Disclaimer: David Currie is an Authorised Representative and bdhSterling Pty Ltd (ABN 65 169 977 413) is a Corporate Authorised Representative (No 462704) of Wealthsure Financial Services Pty Ltd.

General Advice Warning: This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.