Global QROPS Ltd's New Zealand Clients UK State Pension Deferral Options

Posted by Paul Davies on 16/10/09 13:36

Individuals that migrate to New Zealand refer to Global QROPS Ltd when deciding on whether a UK pension transfer to New Zealand is the appropriate strategy for their accrued personal or company pension benefits.

However, what options are open to an individual in a position to claim their UK State Pension rights?

Before the result of the appeal to the European Court of Human Rights is finalized, regarding indexation on UK State Pensions in payment for New Zealand migrants, a potential UK migrant to New Zealand may wish to consider whether they want their basic state pension to come into payment immediately at retirement age or defer this.

Currently, if a retiring individual with UK State Pension rights, living in New Zealand, decides to take their State benefits, the payments are effectively “frozen” and no increases apply to the payments throughout retirement. (This does not apply to company or personal pensions). This is unlike State Pension payments for people living in the UK, European Economic Area (EEA) countries and retirees who have migrated to countries with a reciprocal agreement with the UK. This can put New Zealand migrants at a financial disadvantage.

One option that Global QROPS Ltd advises, if an individual does not rely upon the UK State Pension to supplement their retirement income, is the deferral of this payment. One of the benefits of this advice is that the UK State pension increases in deferral – giving the individual a higher State Pension starting rate throughout retirement.

An individual can speak to an adviser at Global QROPS Ltd regarding UK State Pensions as well as their UK company or personal pension transfer to New Zealand.