How To Migrate Your Foreign Retirement Funds To Your Super
Planning for retirement can sometimes feel overwhelming, especially if you’ve lived or worked in different countries.
If you’ve got superannuation savings in a foreign fund, you might be wondering what your options are now that you’re in Australia.
The good news is that you have choices, whether you want to bring those savings to an Australian super fund or access them directly.
Let’s walk through your options and what you need to keep in mind to make the best decision for your financial future.
If you have money tucked away in a foreign superannuation fund, you’ve got a couple of options for what you can do with it:
- Transfer to an Australian Super Fund:
You can move your funds over to a complying Australian super fund. This can be a smart choice if you want to consolidate your retirement savings in one place. Just keep in mind that the rules of your foreign super fund and the laws of the country it’s based in will play a big role in how this transfer works. - Withdraw as a Lump Sum:
If you prefer, you might be able to withdraw the money as a lump sum. This gives you access to your savings right away, but again, it all depends on the rules and laws of the foreign fund’s home country.
Now, it’s important to remember that what we call a “foreign super fund” here in Australia might go by different names elsewhere, like a retirement fund, pension fund, or retirement savings plan.
Tax Implications:
When you bring funds over to Australia or receive payments as an Australian resident, there could be some tax involved. Specifically, the tax might apply to what’s called “applicable fund earnings.” This refers to the growth in your foreign super that’s happened since you became an Australian resident for tax purposes.
A Special Note on New Zealand:
If you’ve worked in New Zealand, there’s a unique arrangement called the Trans-Tasman Retirement Savings Portability Scheme. This scheme makes it easier to transfer your super between Australia and New Zealand’s KiwiSaver schemes without all the usual hassles. It’s a nice little perk for those with connections on both sides of the Tasman.
If you are unsure about your options, speaking with a licensed advisor could be helpful. We may be able to point you in the right direction –
