Although it does rather feel as though we’ve been here before – to little or no avail – there’s some tentatively good news to report.
Plans to simplify the UK’s pension transfer regulations could remove one of the biggest frustrations for people transferring their pensions to New Zealand.
The UK Government is consulting on changes that would remove the “overseas investment” amber flag from its pension transfer regulations. If adopted, this could mean fewer people being referred for a mandatory MoneyHelper appointment simply because their pension will ultimately be invested overseas.
GBPensions’ director Tony Chamberlain is cautiously optimistic about the proposal, describing it as “a positive step in the right direction”, albeit with a few notable caveats.
“Removing the overseas investment flag would certainly be welcome,” he says. “But our experience suggests it won’t necessarily solve every delay. We’ve seen cases where other amber flags have been raised instead, sometimes for reasons that seem hard to justify.”
That inconsistency is a source of ongoing irritation for both GBPensions and our clients.
“The encouraging thing is that some providers demonstrate every time that transfers can be completed promptly and efficiently. This raises an obvious question of why the experience varies so widely between pension schemes.”
While the UK Government’s proposals are designed to strike a better balance between protecting consumers and avoiding unnecessary bureaucracy, GBPensions believes that consistent application of the rules should be just as important as the rules themselves.
“Obviously, everyone supports sensible safeguards against pension scams,” Tony affirms. “But when there are no genuine warning signs, people should be able to transfer their pension without avoidable delays.
“We hope these proposals are the start of a more streamlined process across the board.”
