Can I Withdraw My UK Pension After Transferring to NZ

At Windsor Wealth, we’re often asked whether UK pensions can be accessed immediately after being transferred to New Zealand. While the answer is generally no for most people under 55, there are some exceptions.

If you're under 55, UK pension rules typically prevent you from withdrawing your pension immediately after a transfer to a New Zealand QROPS (Qualifying Recognised Overseas Pension Scheme). However, some individuals—such as those facing ill health—may be able to access their pension earlier.

For most people, you need to be at least 55 to access your pension, with the minimum age increasing to 57 on April 5, 2028. Once you reach this age, and if you’re a New Zealand resident and no longer a UK tax resident, your withdrawals can be tax-free, which is usually a significant advantage compared to keeping your pension in the UK and having withdrawals taxed at your marginal income tax rate.

To benefit from this tax-free status, it's important that you have mostly severed your ties with the UK. This means significantly reducing or eliminating connections like property ownership, family ties, or employment in the UK. While full severance isn't required, your remaining ties should not be strong enough to classify you as a UK tax resident.

In Summary:

• Most people need to be at least 55 (increasing to 57 in 2028) to access their pension after transferring it to New Zealand.

• Some individuals may be able to withdraw earlier due to special circumstances, such as ill health.

• Once eligible, and if you’ve mostly severed your ties with the UK, you can withdraw your pension tax-free as a New Zealand resident. 

Pension decisions can be complex, so it’s advisable to seek expert advice to ensure you’re maximising the value of your retirement savings.