Emigration and Military Pensions

Has anyone any idea of the what the regulations are concerning Military pension when emigrating?

I am considering a voluntary overseas posting to New Zealand for the remainder of my sad life, and becoming a resident (and eventually, if viable, a citizen) of New Zealand, please belay the sheep-sh??ing ancedotes/references etc.

Anybody any idea how will this effect my pension/pension rights?

I have trawled the web for answers to no avail!!!

1 . NZ is not one of the recognised areas with a Social Security agreement with the UK.

So if yo stop paying you national contribution you will lose out when you hit 65 / 67 / 69 whatever.

You can get around this by paying as self-employed class 2 contributions or class3 contributions.

Class 2 are 3 quid a week and class 3 are 8 (ish) . There is also a white paper trying to reduce the total years required for full pension down to 30 years . So if you have done your 22 pay the class 2 for 8 years and then stop.

2. As NZ is not recognised then the pension will not be linked to the UK annual rise in line with inflation or whaterver it is.So you will only see the increases on your mil pension after reaching 55 (if you are on the 75 pension scheme).

You will always be taxed on your mil pension, there is no way around this that I have seen to be true. Been told by many in pubs about blokes who have done it but am still waiting to be shown that it is a reality.
Thanks Old Bloke,

I was aware that my state pension (NI contributed) would be replaced by the NZ equivalent (superannuation), as there are a great deal of NZ ex-pat civy forums which discuss this very issue.

The NZ government subsumes the UK NI contributions and in turn replaces my hard earned (and what should be my UK OAP) with the NZ old age pension!

Which is less than the UK equivalent due to the lower cost of living in NZ. Legalised theft - I believe is a term bantered about by UK ex-pats living in NZ.

However there was very little on the web regarding the status of Army Pensions overseas, will it be index linked at 55, will it continue to be paid monthly etc....???
Many thanks,

The website has thrown up a telephone number that is handy, seems there may be a Double Taxation agreement between NZ and the UK which avoids me being taxed twice on my pension!!
There is a double taxation agreement in palce with the Uk and Australia. The website given has a contact number and they are fairly helpful.

The outcome for me is I have to register as a service pensioner living overseas and my Army Pension will be taxed by the NZ Inland Revenue not the UK.

I did ask if I had a choice, i.e. play the finanically most advantagous card and be taxed at a lower rate in the UK as my pension would be seen as a sole source of income and benefit from having to pre-tax deductable allowances (Married man allowance in both the UK and NZ) - no such luck, it is mandatory that you register as a overseas service pension receiver. As for index linking, my Army pension is frozen until 55 so I will not see an increase until then and again the revised pension amount will be taxed by the NZ authorities not the UK Inland revenue

The website has all the relevant details.
Keep a UK bank account running & have your pension paid in as normal. You can draw from an ATM or transfer funds by swift code/fax (3 days)


Fingers, would you not loose out on the exchange rate doing this? you would be drawing out at the tourist rate, whereas if you have it paid abroad directly from source, it would be at the commercial rate?
GrumpyGit said:
Fingers, would you not loose out on the exchange rate doing this? you would be drawing out at the tourist rate, whereas if you have it paid abroad directly from source, it would be at the commercial rate?
I draw around £300 at a time on an ATM card at reasonable exchange rates. If moving larger sums I specify that I want it to arrive in STERLING & be converted on arrival by the receiving bank.

(I have a local bank account for anything generated locally)


Your pension will be unaffected by your move overseas. You can have the funds paid into an overseas bank if you wish, or keep a UK acct going. I don't have a pension, but have kept an account open in UK for any birthday cheques I send etc. Tere are several firms who an transfer money between UK and NZ/Aus at good rates - Ozforex and HIFX are two of them.
The people at AFPAA helpdesk were useful for confirming the pension thing is unaffected, HMRC are also helpful and as you say, will stop taxing if NZ won't.


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