Pension Transfers to Australia

What is the appropriate Superannuation vehicle in Australia

The most appropriate Superannuation vehicle in Australia for any transferred funds – for example an Industry or retail fund or Self Managed Superannuation Fund (SMSF, or often referred to as a “DIY” Fund) – is going to be a function of several considerations, including:

• The size of the funds transferred – as a rule of thumb the additional running costs of a SMSF probably means that it is not cost efficient for a fund balance below AUD200,000.  However, if the intention is that the balance will grow, then it might be an appropriate choice.

• The role you wish to play in the management of your funds – if you wish to have the maximum involvement and flexibility in terms of how your funds are invested and managed a SMSF would probably be the best fit, although public funds are cost effective and provide a wide spectrum of features suiting the passive to reasonably active investor – and access to benefits such as group life insurance.  

• Whether you have a financial planner who manages your superannuation in concert with other investments and would like them to be on a common platform, and 

• Whether regulatory restrictions apply – the British Government, since mid 2006, has required that pension funds be transferred to Qualifying Recognized Overseas Pension Funds (QROPS) or significant taxes are levied on withdrawals.  At this stage (early 2008) more than 260 Australian superannuation funds have QROPS certification and the option exists to transfer funds into a QROPS qualified SMSF. Our actuarial partner can provide a QROPS registration package for SMSF’s.

Exfin’s financial planning partners can provide more advice in terms of the options available; ideally the choice should be made in concert with a financial advisor based on your specific plans and objectives.

Complete the Pensions inquiry form