CASE STUDY: Investing a UK Pension Transfer (John)

John, a teacher from the UK emigrated to New Zealand in 2010. In early 2015 John took advice on transferring his Teachers UK pension to a New Zealand Recognised Overseas Pension Scheme (ROPS) in order to have greater flexibility and control of his money.

 

John used a Saturn adviser for investment advice and on-going management of his pension funds. A diversified portfolio was recommended, comprising a mix of New Zealand dollar and sterling denominated investments based upon John’s risk profile.

 

Shortly afterwards John turned 55 years of age and was entitled to take a tax free lump sum benefit payment from his superannuation portfolio under the current ROPS regulations. John did not need the cash to repay debt and wanted to continue investing the funds for his retirement. John decided to follow his advisers suggestion of taking the benefit payment by transferring investments to a separate personal portfolio, over which he has full control. John will continue to withdraw his entitlement each year and add it to the personal portfolio.

 

John now has his UK pension funds growing in two portfolios for his retirement: a ROPS compliant superannuation scheme and a separate personal portfolio over which he has complete control.