How to transfer UK pension to New Zealand

Planning a big move to New Zealand from the UK? Perhaps you’re moving to Christchurch with a young family, starting a new job in Auckland or retiring in Tauranga (known as the Florida of NZ).

When making your pre-move plans, it’s important not to forget about your pension. You might want to move it abroad with you, so you can easily access your hard-earned pension income when you need it.

Read on for a comprehensive guide on how to transfer a UK pension to New Zealand. We’ll look at which pension types can be transferred, the steps involved, and any cost or tax implications you need to consider.

And remember, if you’re looking to move pension savings or other income across international borders, the Wise account is an ideal solution. It offers low transfer fees*, the mid-market exchange rate and a choice of 40+ currencies, as well as being safe and secure for transferring large sums.

Can I transfer my UK pension to New Zealand?

Yes, you should be able to transfer a UK private or workplace pension to New Zealand.

However, it may depend on the conditions and restrictions of your particular pension scheme.

You’ll also need to find a particular type of pension scheme in New Zealand to transfer your UK pension over to. You’ll need it to be a Qualifying Recognised Overseas Pension Scheme (QROPS), which means that it’s been vetted and approved by HMRC.

The good news is that New Zealand is currently on the HMRC QROPS list, with a number of schemes to choose from.

Moving your pension to a QROPS is often the only way to transfer a pension overseas.

It also helps you avoid a high tax bill, although it’s important to remember that transferring UK-based pensions abroad can still have significant and often complex tax implications. It depends where you’re moving to, and your own personal circumstances.

So before you do anything, it could be a good idea to speak to a pensions or tax specialist to get some expert advice.

Which UK pensions are eligible for transfer to New Zealand?

Many types of workplace or private pension are eligible for transfer from the UK to New Zealand. This includes:¹

• Occupational pensions
• Final salary pensions
• Defined benefit pensions
• Defined contribution pensions
• Self-invested and small self-administered schemes.

However, you’ll need to check with your pension provider, just in case there’s any small print that may prevent or restrict a transfer.

Some UK pensions can’t be transferred out of the country. This includes unfunded civil service pensions (i.e. those held by teachers, NHS workers and police officers).²

UK state pensions can’t be moved abroad either, although you can still apply to receive payments once living abroad. You’ll just need to make sure you’re up-to-date with your National Insurance (NI) contributions and apply to the International Pension Centre within 4 months of your state pension age.³

How to transfer your UK pension to New Zealand - a step by step guide

Now, how do you actually go about transferring a pension from the UK to New Zealand?

It all starts with checking that your pension is actually eligible for transfer, and then finding a suitable QROPs in New Zealand. Finally, there’s some paperwork to complete, and then it’s a waiting game until your transfer is confirmed.

We’ll run through these steps in more detail in just a moment. But first, some useful info on QROPS and how these schemes work.

Qualifying Recognised Overseas Pension Schemes (QROPS)

The most crucial part of transferring a UK pension overseas is finding a Qualifying Recognised Overseas Pension Scheme (QROPS) in the country you’re moving to.

QROPS are pension schemes that have been vetted and approved by HMRC, and which allow UK nationals to transfer their pensions when they move abroad.

Most UK pensions can only be moved to a QROPS, otherwise your UK pension provider may refuse to make the transfer. It may be possible to move your pension to a non-QROPS scheme, but you’ll face a whopping 40% tax bill on the transfer.⁴

It’s important to note though that transferring your pension to a QROPS in New Zealand may not mean you avoid tax charges altogether.

💡 Learn more: What is a QROPS?

Steps to transfer your pension

To help you get started, let’s take a step-by-step look at the process for transferring your pension from the UK to New Zealand:

1 - Find a QROPS scheme

Your first task will be to find a QROPS in New Zealand. This is pretty easy to do, as you can simply check the recognised overseas pension schemes notification list here.

Sorted alphabetically by country and updated regularly, these are all the schemes that meet HMRC’s requirements to be a QROPS.

At present, New Zealand is on this list, and there are quite a few schemes to choose from. You’ll need to do some research to find one that meets your requirements and which is compatible with your pension type.

2 - Check that your UK pension allows transfers

Next, you’ll need to contact your pension provider here in the UK. You’ll need to find out if your pension scheme is eligible for overseas transfer, and any conditions, fees or charges you need to know about.

At this stage, it’s a good idea to seek professional advice from an overseas pension or tax specialist. There may also be tax implications related to the transfer, so you need to be fully informed before going ahead.

3 - Submit the transfer application form

When you’re ready, the final step is to apply for the transfer.

To do this, you’ll need to download and complete Form APSS 263 from the UK Government website. Make sure you have the following information ready:

• Your personal details and National Insurance number
• Address and contact information for you in the UK (or your previous UK address if you’ve already moved)
• Details of the QROPS - including the name, address, country in which the scheme is established and regulated and its HMRC reference number
• Your employment details (if relevant).

Then, submit this form to your UK pension scheme administrator to start the transfer process.

It’s really important to check your form carefully before submitting it. If you’re asked for more information, provide it promptly or you could face a penalty.

If you fail to provide all the requested details within 60 days of submitting your form, your transfer will be taxed at 25%. This is whether or not you’re exempt from paying other taxes or charges.⁴

Timeframes and costs involved

How long it takes to transfer a UK pension overseas depends on a few different factors, such as:

• The complexity of your personal circumstances
• The efficiency of the pension providers involved in both countries
• How quickly you respond to requests for further information.

You’ll need to speak to your pension provider (and perhaps the QROPS provider in New Zealand too) to find out more about specific timeframes for the transfer to be completed.

In terms of costs, there is one main charge you need to know about. This is the overseas transfer charge of 25%.

If you’re living in the same country as the QROPS you’re transferring to - and you don’t leave for at least 5 years - you shouldn’t have to pay this.⁴

But it may apply if your transfer exceeds your overseas transfer allowance (OTA). This is currently set at £1,073,100, although it can differ in some circumstances. If you exceed your OTA, the 25% charge may be payable on the excess.⁴

Tax considerations of transferring your UK pension to New Zealand

Tax and pensions are never straightforward, especially if you’re moving between two countries - each with their own tax laws.

This is why it’s always a good idea to get some professional financial advice before transferring a pension to another country.

But generally speaking, here’s what you need to know about tax when you move a UK pension to New Zealand.

If you’re living in the same country as the QROPS, you shouldn’t be liable for transfer tax. So if you’ve already moved to New Zealand and live there permanently, and transfer your UK pension to an New Zealand-based QROPS, you shouldn’t have to pay tax.⁴

However, there are still some tax implications you need to know about, depending on your circumstances. For example:

• You’ll have to pay 25% transfer tax on the excess if you make a transfer that exceeds your overseas transfer allowance (OTA) of £1,073,100.⁴
• There’s a 40% tax if you transfer your pension to a non-QROPS (which is usually not permitted, but still technically possible).⁴
• If you receive pension payments within the first 5 years of the transfer, UK tax rules apply. Afterwards, New Zealand tax rules apply.¹

Save money on pension transfers to New Zealand with Wise

After reading this, you should have a better idea of how to transfer your UK pension to New Zealand. We’ve covered all the important points, including info on QROPS, transfer taxes, and the steps to get started.

But it’s also important to think about how you’ll actually receive your pension sum in New Zealand.

A key consideration is that your pension pot will need to be converted from British pounds (GBP) to New Zealand dollars (NZD).

If you use a local bank account, you could be stung by high currency conversion fees and poor exchange rates. As it’s likely to be a large amount you’re transferring, this could make a serious dent in your retirement funds.

Luckily, there’s a better solution available. Open a Wise account and you can manage your money in 40+ currencies, including GBP and NZD.

You can use it to send and receive money internationally, for low fees* and mid-market exchange rates.

This could be hugely useful for transferring your pension between countries, or even for receiving your UK state pension or other UK-based income while living in New Zealand.

Sign up with Wise today

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Sources used:

1. Unbiased - Can I transfer my UK pension to New Zealand?
2. Blacktower Financial Management Group - Qualifying Recognised Overseas Pension Scheme (QROPS)
3. GOV.UK - State Pension if you retire abroad
4. GOV.UK - Transferring your pension

Sources last checked on date: 23-Jan-2025