John’s smart blended strategy
John moved to Australia when he was over 55 with a UK pension worth £350,000. When he first approached us, John wanted to know if there was a better setup available now that he lives in Australia.
Thanks to our international expertise and dual presence in the UK and Australia, we designed a strategy which blended pension products from both regions to optimally set up John’s fund. We also analysed his existing pension to determine what valuable terms or benefits may be lost in the transfer.
This strategy saved John considerable tax and gave him greater flexibility in drawing his pension over time.
A flexible retirement for Rory and Jane
In his early 20s, Rory decided to travel from Australia to the UK.
While abroad, he met the love of his life, Jane. The two married and had children, deciding shortly after to move their family to Australia.
The couple needed advice on what to do with their UK pensions, which led them to PX Pension Exchange.
We were able to implement a strategy so that Rory and Jane wouldn’t be disadvantaged if they were to retire in either country. This gave them flexibility for their retirement – and on how they could use their funds in the future.
Big tax savings in both countries
Eli had been a senior executive at a well-known UK corporation. A few years before his retirement, he and his family emigrated to Australia, where Eli worked in well paid job.
Having worked in the UK for 15 years, Eli had accumulated a pension worth over £1 million (as well as some other smaller pension funds). If he incorrectly withdrew his main fund from the UK, he would been taxed at 55% on the excess. He would have also had to pay an additional 45%+ in tax in Australia on his drawings.
But PX Pension Exchange advised Eli on how to structure his UK pension to reduce the tax on his pension drawings by 30%. We also helped him manage the transfers and payments coming from the UK to considerably reduce the overall tax he would pay in Australia.
In this case, seeking help from PX Pension Exchange saved Eli hundreds of thousands of pounds.
An international pension plan for Max
As an international sales executive, Max often travelled between countries. Although he grew up in Australia, he didn’t live there on a regular basis.
He was also married to a UK national, so there was a chance he would retire in the UK.
Retirement flexibility was key for Max. If he moved his pension fund out of the UK but returned to live there, he could incur a significant tax bill. However, he didn’t want to miss out on planning for his retirement and accumulating pensions and super.
Through our UK office, PX Pension Exchange was able to establish an international pension plan for Max. This meant that later in life, when he decided to live in either the UK or Australia, his pension funds were set up for optimum benefit in both countries.
Alexa’s pension restructure
Alexa had benefits in a UK final salary scheme worth £650,000, which could not be split within the scheme. But she knew that if she transferred all its funds to Australia, it would exceed the Australian NCC – and she would pay a substantial amount of tax.
After approaching PX Pension Exchange, we were able to restructure Alexa’s pension entitlements so that she could transfer them to Australia over time (in line with the NCC). In the meantime, we also set up her UK funds pending transfer so they could grow in line with her shorter-term risk profile.
In the end, Alexa ended up with a much higher retirement income.
Splitting a scheme following divorce
When Joe and Ruth divorced after nine years of marriage, Ruth was awarded a share of Joe’s pension as part of the settlement. It was a UK-based final salary pension.
Factoring in all the court documents, we worked closely with Ruth to explore all her options – including how the funds should be split and whether they should be transferred to Australia.
Further to our investigations and advice, we ensured that the required part of Joe’s pension was transferred into Ruth’s name in Australia so that Ruth could achieve her financial goals in retirement.
Lionel’s perfect pension solution
After 20 years with his employer, Lionel was nearing retirement. At the time, he had two final salary pensions: a primary scheme and a smaller secondary scheme.
This meant that Lionel would receive a fixed guaranteed income for life.
But Lionel was interested in exploring his options. He also wanted to pay for an upcoming lump sum expense, create more flexibility in how he could use his wealth during retirement – and leave a legacy fund of at least $20,000.
After analysing Lionel’s primary pension, we discovered that it was providing excellent benefits. His secondary pension, on the other hand, had a more favourable transfer value. After carefully considering his risk profile, capacity for loss and ideal retirement, we recommended that Lionel transfer his second pension to a new arrangement in Australia that was more aligned with his long-term goals.
A simpler, sweeter life
Receiving separate statements for his four pension schemes at different times of the year, George was having trouble keeping up with his pensions.
When he engaged PX Pension Exchange, our team:
- Expertly calculated the value of each pension
- Analysed the respective terms, benefits and transfer costs of each pension
- Evaluated George’s investment risk profile and clarified his financial goals
We then presented our recommendations, which involved transferring some of his pensions and simplifying his overall pension arrangement. This saved him a substantial amount in fees and charges – and set George up for a more promising retirement.
To cash in or not to cash in?
Michaela had a pension worth £400,000, which she was considering cashing in. But first, she wanted to understand the tax implications – which led her to PX Pension Exchange.
We explained to Michaela that her tax would be deducted at different rates depending on how the cash was withdrawn. As an Australian tax resident, this amount could be substantial.
Then, we advised Michaela that if she staggered her ‘cash in’ payments over time, she would pay a lower tax rate. From there, we helped her move her UK pension into a more flexible local fund over time in accordance with the tax limits. This strategy allowed her to access capital on a tax-effective basis, in line with her changing goals.