We have outlined a range of case studies for clients that we assisted over many years. Please note that we have altered the client names for the sake of confidentiality.
Couple with NHS Pensions transfer to a SMSF with QROPS
John and Anne were working professionals who had decided to move to Australia and had contacted our UK advisers Global QROPS. Both had many years of service within the NHS. Global QROPS were engaged to obtain pension valuations and prepare a Pension Transfer Analysis (PTA). This PTA outlined their options with their respective NHS Pensions that were valued at GBP 185,000 and GBP 79,000 respectively. After receiving the pension valuations and assessing their objectives, it was recommended by their UK adviser that they transfer their pensions to Australian Super Funds via a UK SIPP. The SIPP allowed them to take advantage of the Foreign Exchange facility, which saved them up to a 5% fee on any FX conversion that would be otherwise payable on a direct pension transfer to super (which is converted at standard bank rates). The UK advisers managed all the transfer paperwork to the SIPP and set an AUD:GBP rate.
Once they arrived in Australia, they met with the recommended Australian Adviser who completed an initial fact find and established their goals, risk profile and understood their current situation. Noting the recommended transfer strategy within the Pension Transfer Analysis from the UK adviser, and the clients primary objective of transferring their pensions to Australia, the Australian Adviser produced a report or Statement of Advice (SOA) outlining the recommendations for John and Anne. After reading this report both John and Anne agreed with the recommendation to establish an Australian retail super fund each with QROPS designations. All associated transfer paperwork was jointly managed by UK and Australian advisers within bdhSterling and as the desired FX rate had been achieved, the funds were converted to AUD (at a fraction of the standard bank rate) and transferred to the cash account in the retail super funds. John and Anne had discussed the option of a SMSF with their Australian Adviser while the transfer was under way and after receiving a Statement of Advice outlining the SMSF recommendations, they agreed that a SMSF was their preferred superannuation vehicle. They engaged bdhSterling to establish the SMS, with the assistance of a recommended accountant, and bdhSterling managed the QROPS application for the SMSF. Once approved by HMRC, the funds were transferred to the SMSF cash account from both of their retail super funds and directed to a range of listed assets (with the assistance of a private bank broker), cash and term deposits as per their risk profile. They also directed their employer contributions to their SMSF and had some of their personal insurances (life and TPD) paid by their fund. John and Anne engaged our internal accountants to do their individual tax returns and ongoing SMSF compliance work. They have subsequently bought a house and used a recommended mortgage broker (who had experience with new migrants) to assess all the mortgage providers (including the big four banks) and apply for a loan with the best mortgage rate and structure available to them.
Couple living in Australia for 7 years
Paul and Vivienne had migrated to Australia 7 years before they contacted bdhSterling about their UK Pensions. Looking at their pensions was something that they had been meaning to do after moving their family, but they just hadn't got around to doing. They each had a number of UK private pension funds; Paul had 3 funds and Vivienne 2 and decided to contact us as they had decided to transfer their pension funds to Australia. They did not want a Pension Transfer Analysis and wanted a recommendation on where they should transfer their funds to. Recently they had each contacted their respective UK pension funds and received 2 fund balances; 1 as of the date they arrived in Australia 7 years ago and 2. a month prior to contacting us. The Australian adviser undertook a free, no obligation meeting to understand their objectives, risk profile and current situation. They engaged bdhSterling to produce a Statement of Advice but opted out of a SMSF as they did not want to take on the responsibility. Paul and Vivienne accepted our recommendations of a QROPS retail superannuation fund to receive their UK pensions, however they opted for keeping their funds in cash in GBP within each of their Australian retail super funds until they decided on their investment strategy and whether to invest in portfolios of AUD or GBP.
Couple with pensions over Non-Concessional Contribution Caps
Stephen and Nina were clients that were referred to our UK office. Stephen was a successful professional who had a pension balances of GBP 680,000, Nina had a balance of GBP 97,000 with an additional GBP 500,000 that they were allocating to supplement their retirement income. After meeting with our UK advisers, and with their goal to get both Stephen and Nina's pension funds and as much cash as possible into Australian super within 5 years (when he would turn 65), a Pension Transfer Analysis (PTA) was produced outlining recommendations of establishing SIPPS to receive their UK funds prior to transferring. We undertook a staged transfer process, whereby each of them transferred $150,000 AUD of their respective UK pension fund balances in the first Australian financial year and a further $540,000 AUD each will then be transferred in the next financial year. Stephen will fund this second contribution from his pension funds and Nina will fund her contribution from the small residual amount remaining from her pension funds and the balance is then coming from their saved cash. Stephen's residual pension funds within the SIPP are invested in the UK through a diversified range of fund managers. This will be until they can both make their next round of transfers in 3 financial years after their transfers of $540,000 each. The funds that were transferred to superannuation will be invested in a range of listed assets, cash and term deposits and they will convert their super funds into a pension streams once their respective $540,000 contributions arrive in Australia. They will also then consider whether to look at establishing a SMSF or not. Stephen and Nina have engaged our recommended accountant as their tax agent to apply for their Tax file Numbers to prepare their ongoing tax returns.
Simple Transaction into GBP portfolio within Superannuation
John is an electrician who had recently migrated to Australia. During the first appointment with an Australian Adviser, he indicated that had a private UK pension fund of approximately GBP 66,000 but needed a super fund quickly that could both accept his employer contributions (for a job he was about to start), as well as his pension funds. John didn't want a UK Pension Transfer Analysis report as he had decided already that he wanted to transfer his pension to superannuation, but he did elect to invest his pension funds into a GBP portfolio. We prepared a Statement of Advice (SOA) immediately, established a super fund within a few days of the meeting, and forwarded the paperwork to his employer on John's behalf so that the employer could direct the payments immediately to his super fund of choice. As John started his new job, we obtained an up to date valuation of his UK pension fund and arranged all the transfer paperwork for him. On their arrival into the super fund, we invested his UK pension funds into a GBP portfolio, while investing his employer contributions into an Australian portfolio. John applied for life insurance and total and permanent disability insurance within his super and income protection personally. He also engaged the recommended accountant to prepare his tax returns.