At Super-Advice we are about all things financial, but more importantly, helping people understand so they can get ahead financially.
In today’s blog post we share with you whether or not you should transfer your Australian Super to New Zealand.
Ultimately up to you
Ultimately the end decision is up to you because it’s your money and your choice. We can give you some pros and cons and share some of the experiences that we’ve had because Super-Advice has transferred many millions of dollars for New Zealanders that have come home and want to bring their superannuation.
Your money should be where you live
The reason why you may want to do it is we think it’s important if you’re going to stay in New Zealand forever, you should have your money in the same country where you live.
You might be paying for insurance that won’t work
Another thing to be aware of is that most superannuation funds in Australia have insurance attached to them. Life insurance, disability insurance, and even income protection insurance.
You will find that most of those insurances won’t pay unless you are still living in Australia. So you’re paying for insurance that doesn’t work.
So if you do decide to leave your superannuation in Australia make sure you find out if that is the case and more importantly, cancel those insurances if you find out that you can’t use them.
You can’t take the money out and spend it
Another thing to take note of is if you do transfer your superannuation to New Zealand, it’s got to go into KiwiSaver.
If you transfer KiwiSaver over to Australia, it’s got to go into superannuation.
You can’t take the money out and put it in your bank account and spend it.
We get a few disappointed people that find out they can’t immediately spend that money. Until, a few years go by and they haven’t spent it, and they’ve still got it, and they’ve watched it compound, and grow, ready for when they can qualify to take it out.
Can I use my transferred Australian super for a first home deposit?
You cannot use Australian transferred superannuation to KiwiSaver for a first home deposit but you can use the returns that you make from that superannuation that sits within your KiwiSaver.
For example, if someone bought $120,000 over, six years later it turned into $200,000, then $240,000. So that person could use $120,000 towards the first home in New Zealand.
How can I transfer my super?
It’s incredibly laborious to a point where we are convinced that it’s made so difficult that you give up trying to bring your money to New Zealand. Australian fund managers don’t want you withdrawing your hundreds of thousands of dollars.
Super-Advice has had businesses, both in New Zealand and Australia over the years. So we understand both markets intimately and have a great process in place and have helped many, many New Zealanders transfer, many millions of dollars back to New Zealand.
That’s a wrap
So what do you think? Do you need help transferring your superannuation?
If you need any financial help or advice please get in touch with us at Super-Advice.