UK Pension Transfers – What if I am under 55?
If you have a UK pension and live in Australia but are under age 55, you may still be able to start planning for a future transfer.
The rules around accessing UK pension benefits are changing. The UK Normal Minimum Pension Age (NMPA) is scheduled to increase from 55 to 57 from 6 April 2028.
This means it is important to consider your age, pension type and retirement plans when deciding what to do with your UK pension.
Can I transfer my UK pension before age 55?
If you are under age 55, an Australian QROPS will not accept a transfer of your UK pension.
This is because the Australian QROPS must comply with UK pension rules governing the minimum age at which pension benefits can be paid.
From 6 April 2028, the UK Normal Minimum Pension Age increases from 55 to 57. This means the minimum age applicable to transfers to an Australian QROPS will also need to be considered in light of the new rules.
If you are under the applicable age, we can discuss your circumstances and help you understand what options may be available and when an Australian transfer may become possible.
For clients with large transfers, a UK SIPP or other appropriate pension arrangement may need to be considered as part of a longer-term strategy for preparation for when a transfer is eligible.
Planning for the change to age 57
If you are currently under 55, the increase to age 57 from 6 April 2028 is particularly relevant.
Your planning should consider:
- your current age and intended retirement age
- the type and value of your UK pension
- whether you are still contributing to the pension
- when you expect to need access to the funds
- whether your pension has any protected pension age
- the options available in Australia and the UK
- the UK and Australian tax implications.
Why plan early?
A UK pension transfer can involve several stages and may require UK and Australian advice.
Planning before you reach the minimum pension age gives you time to understand your options and determine whether transferring your pension is appropriate for your circumstances.
If you are under 55 and have a UK pension, contact Veyron to discuss your options and start planning for the future.
“Drew Hawkins is one of Australias most experienced advises with regard to UK pensions transfers to Australia with over 24 years experience”
David Ford – Founder & CEO of Pension Transfers Direct Pty Ltd
★★★★★ 5/5
