Under 55 and retiring in Australia with a UK pension - Jason O'Connell - Financial planning

Jason O'Connell

Under 55 and retiring in Australia with a UK pension

Planning a retirement in Australia with a UK pension, if you're under 55

It’s never too early to start planning your retirement in Australia.

If you’re under 55, you still have some time to make a big impact on the quality of your life in retirement.

By working with Jason, you can prepare (and stick to) a financial plan that will help you have your dream retirement in Australia waiting. You’ll be able to identify and set out your ideal retirement objectives, with all aspects of your financial situation considered. You’ll get a step-by-step action plan of what you need to do, from this very day, to get where you need to be – happily retired under the Australian sun.

It doesn’t matter what your current circumstances are, you just need a willingness to achieve and plan for the future.

I'm under 55 and want to retire in Australia. What should I be doing right now?

You won’t be able to access or transfer your British pension to Australian until you’re at least 55. But just because you can’t access or transfer it, doesn’t mean you can’t influence it. It’s still your pension. It’s still your future life.

Time is everything when it comes to planning a retirement in Australia. What’s more, many UK Defined Benefit schemes – and the Cash Equivalent Transfer Values associated with them – are at record highs, principally due to the low interest rate environment, which has significantly increased the risk-free replacement cost of these valuable fixed benefits.

Currency risk

If you are planning on retiring in Australia and have a UK pension in a foregin currency (GBP), you will want to consider your options to mitigate the risk of your retirement income being exposed to currency fluctuations. You can read more in this article, answering the question how risky is it to hold retirement savings in a foreign currency?.

The value of advice

According to research by Vanguard which quantifies the value of advice, an advised client can potentially achieve alpha of 3%. So, ask yourself whether your UK pension is best uncared for and left in the bottom drawer until you reach 55, or whether it’s best transferred to Australia with you. What’s almost certain, is that you will benefit from taking regulated advice on your pension transfer to ensure that it’s correctly structured, invested in line with your retirement goals and adheres to your risk appetite, providing good value for the fees you’re paying.

Jason will work with you to indentify whether you have the right pension, are appropriately invested and getting value for money, to ensure you are maximising your chances of being in the best possible place to achieve your Australian retirement goals. And if you don’t have set goals yet, that’s where you’ll start.

Nobody sets out planning to fail, however as Benjamin Franklin once said, “If you fail to plan, you are planning to fail.” 

Once your goals are set, the strategy and plan to achieve them will be set, providing agility to react should the macro-economic situation, or indeed, your personal situation change over time.

If you want to know more about what you need to be doing with your savings right now, to be in the best possible position to realise your retirement dreams in the future, get in touch with Jason for some tailored advice specific to your circumstances.

Some further reading that might help you if you’re under 55 with a UK pension and planning a retirement in Australia:

Planning a retirement in Australia with a UK pension, if you're under 55

It’s never too early to start planning your retirement in Australia.

If you’re under 55, you still have some time to make a big impact on the quality of your life in retirement.

By working with Jason, you can prepare (and stick to) a financial plan that will help you have your dream retirement in Australia waiting. You’ll be able to identify and set out your ideal retirement objectives, with all aspects of your financial situation considered. You’ll get a step-by-step action plan of what you need to do, from this very day, to get where you need to be – happily retired under the Australian sun.

It doesn’t matter what your current circumstances are, you just need a willingness to achieve and plan for the future.

I'm under 55 and want to retire in Australia. What should I be doing right now?

You won’t be able to access or transfer your British pension to Australian until you’re at least 55. But just because you can’t access or transfer it, doesn’t mean you can’t influence it. It’s still your pension. It’s still your future life.

Time is everything when it comes to planning a retirement in Australia. What’s more, many UK Defined Benefit schemes – and the Cash Equivalent Transfer Values associated with them – are at record highs, principally due to the low interest rate environment, which has significantly increased the risk-free replacement cost of these valuable fixed benefits.

Currency risk

If you are planning on retiring in Australia and have a UK pension in a foregin currency (GBP), you will want to consider your options to mitigate the risk of your retirement income being exposed to currency fluctuations. You can read more in this article, answering the question how risky is it to hold retirement savings in a foreign currency?.

A lot of expats avoid the cost, exchange rate complexities and hassle of this by transferring their UK pensions to an Australian provider. This provider needs to be HMRC registered and you’ll need to choose a Qualifying Recognised Overseas Pension Scheme (QROPS).

Jason is one of Australia’s most specialist expat retirement financial planners. Get in touch to find out how he can help you.

If you have deferred benefits in an unfunded public servant pension such as a police officer, a NHS worker or teacher, unfortunately you may not have the option of transferring your pension pot overseas due to changes in legislation introduced by HMRC in April 2015. However, there may be exceptional circumstance that allow you to transfer the benefits in an unfunded scheme.

The value of advice

According to research by Vanguard which quantifies the value of advice, an advised client can potentially achieve alpha of 3%. So, ask yourself whether your UK pension is best uncared for and left in the bottom drawer until you reach 55, or whether it’s best transferred to Australia with you. What’s almost certain, is that you will benefit from taking regulated advice on your pension transfer to ensure that it’s correctly structured, invested in line with your retirement goals and adheres to your risk appetite, providing good value for the fees you’re paying.

Jason will work with you to indentify whether you have the right pension, are appropriately invested and getting value for money, to ensure you are maximising your chances of being in the best possible place to achieve your Australian retirement goals. And if you don’t have set goals yet, that’s where you’ll start.

Nobody sets out planning to fail, however as Benjamin Franklin once said, “If you fail to plan, you are planning to fail.” 

Once your goals are set, the strategy and plan to achieve them will be set, providing agility to react should the macro-economic situation, or indeed, your personal situation change over time.

If you want to know more about what you need to be doing with your savings right now, to be in the best possible position to realise your retirement dreams in the future, get in touch with Jason for some tailored advice specific to your circumstances.

Some further reading that might help you if you’re under 55 with a UK pension and planning a retirement in Australia:

How can Jason help you retire in Australia?

This is a literal once-in-a-lifetime opportunity – don’t take any risks.

Jason can help you make the most of it. He has direct knowledge and everyday experience helping hundreds of expats not just make the move to Australia, but enjoy a golden retirement there too.

How can Jason help you retire in Australia?

This is a literal once-in-a-lifetime opportunity – don’t take any risks.

Jason can help you make the most of it. He has direct knowledge and everyday experience helping hundreds of expats not just make the move to Australia, but enjoy a golden retirement there too.