QROPS in New Zealand: The Australasian Option for UK Expats

For UK nationals emigrating to New Zealand, the question of what to do with UK pension assets is a significant financial planning decision. New Zealand operates a recognised pension system — its workplace retirement savings scheme, KiwiSaver — and certain KiwiSaver providers are listed on HMRC's Recognised Overseas Pension Schemes (ROPS) notification list.

However, the New Zealand QROPS environment is more restrictive than European alternatives, and understanding the specific rules — including who qualifies, what the tax consequences are, and what the alternatives might be — is essential before making any transfer decision.

This guide explains the New Zealand QROPS framework as of 2026, who it may suit, and how it compares to other options.

KiwiSaver and ROPS: The Basics

KiwiSaver is New Zealand's voluntary workplace retirement savings scheme, introduced in 2007. Contributions are made by employees, employers, and the government. Funds are locked in until the member reaches New Zealand Superannuation age (currently 65) with limited early access provisions.

Certain KiwiSaver providers have applied for and received ROPS (Recognised Overseas Pension Scheme) status from HMRC, making them eligible to receive UK pension transfers. However, not all KiwiSaver providers are ROPS-listed — you must verify that the specific provider you intend to use appears on HMRC's current list before transferring.

Eligibility: Residency and the Overseas Transfer Charge

The Overseas Transfer Charge (OTC) of 25% applies to QROPS transfers unless an exemption applies. The main OTC exemptions relevant to New Zealand are:

Residency exemption: the member must be resident in the same country as the QROPS. For a New Zealand QROPS, this means the member must be resident in New Zealand at the time of transfer. UK expats who have emigrated to New Zealand and are legally resident there may qualify for the OTC exemption.

Five-year rule: if the member moves away from New Zealand within five years of the transfer, the OTC may be triggered retrospectively. This creates risk for those who are not committed to long-term New Zealand residency.

The exemption is purely residency-based — you must be tax resident in New Zealand. (There is no longer any broader EEA-based route either: HMRC abolished the EEA and Gibraltar OTC exemptions on 30 October 2024, so even Malta-based QROPS now rely on the same-country-residence test.)

KiwiSaver Rules: Restrictions on Access

A critical consideration for UK expats transferring to a New Zealand KiwiSaver QROPS is that KiwiSaver has its own access rules, which are largely independent of UK pension rules:

• No access before age 65: with very limited exceptions (first home purchase, serious illness, or significant financial hardship), KiwiSaver funds cannot be accessed before age 65.
• Lump sum access: upon reaching 65, members can access their KiwiSaver balance as a lump sum, in instalments, or as a drawdown.
• No annuity requirement: unlike some QROPS jurisdictions, New Zealand does not require pension assets to be converted to an annuity.

For UK expats who were planning to access their pension from age 55 (the UK's normal minimum pension age, rising to 57 from 6 April 2028), transferring to a New Zealand KiwiSaver QROPS could delay access to 65 — a meaningful restriction for those in their 50s.

Tax Treatment in New Zealand

New Zealand does not levy tax on pension growth within a KiwiSaver scheme in the same way the UK exempts pension funds from income tax and capital gains tax. Instead, KiwiSaver funds are typically subject to a Portfolio Investment Entity (PIE) tax regime, with income taxed at rates based on the member's prescribed investor rate (PIR), ranging from 10.5% to 28%.

Pension income withdrawn from a KiwiSaver scheme is generally not subject to income tax in New Zealand, though the treatment depends on the nature of the withdrawal and the individual's tax position.

The UK-New Zealand double taxation agreement determines whether income from UK pensions paid to New Zealand residents is taxable in the UK, in New Zealand, or both. Professional tax advice in both countries is essential to understand the full picture.

Death Benefits

In the event of a member's death, KiwiSaver balances are paid out to the estate rather than nominated beneficiaries in the way UK pension death benefits operate. This is an important structural difference: UK pensions (particularly SIPPs and personal pensions) allow expression of wishes nominations to non-estate beneficiaries, potentially outside the estate for inheritance tax purposes. New Zealand KiwiSaver funds do not offer this flexibility in the same way.

For estate planning purposes, this distinction matters significantly, especially in light of the UK's 2027 inheritance tax changes that bring unspent pension assets within the estate.

Transfer Value and Fund Growth

UK pension funds transferred to a New Zealand KiwiSaver scheme are denominated in New Zealand dollars upon transfer. Exchange rate fluctuations between sterling and the NZD will affect the real value of the fund. For those who intend to retire and spend in New Zealand, this removes ongoing exchange rate risk — but the transfer itself is exposed to the rate prevailing at the point of transfer.

Who Might Consider a New Zealand QROPS?

A New Zealand KiwiSaver QROPS may be worth considering for:

• UK nationals who have permanently emigrated to New Zealand and are legally resident there
• Those committed to retiring in New Zealand with no intention of returning to the UK or relocating again within five years
• Those over 55 who do not need early pension access and are comfortable with the KiwiSaver access age of 65
• Those who have already taken regulated financial advice confirming the transfer is in their best interest

It is less likely to be appropriate for:

• Expats who are uncertain about their long-term residency plans
• Those who wish to access pension assets before age 65
• Those with defined benefit pensions (where the critical yield analysis rarely supports transfer)
• Those who value the FSCS protection of a UK SIPP

Comparison: New Zealand vs Malta QROPS

Feature	New Zealand QROPS	Malta QROPS
OTC exemption	Residency in NZ only	Residency in Malta only (EEA exemption abolished 30 Oct 2024)
Currency	NZD	EUR or other
Access age	65 (KiwiSaver rules)	Typically 55-57
DTA network	UK-NZ DTA exists	Extensive EU/global
FSCS equivalent	No direct equivalent	MFSA protection only
Estate planning	Via estate	Flexible nomination

Process: Transferring to a New Zealand QROPS

1. Confirm you are legally resident in New Zealand and meet residency requirements
2. Obtain regulated pension transfer advice (mandatory for DB transfers above £30,000; strongly recommended for all transfers)
3. Select a KiwiSaver provider that appears on HMRC's current ROPS list
4. Complete the KiwiSaver transfer application and HMRC notification requirements
5. Instruct the UK scheme to transfer
6. Confirm NZD investment allocation with the KiwiSaver provider

Alternatives

Retaining a UK SIPP: if residency plans are not certain, or if access before 65 may be needed, a UK SIPP avoids the OTC risk and retains maximum flexibility. UK SIPPs can hold international investments.

Deferring the decision: pension assets can remain in the UK indefinitely. Transferring is irreversible; remaining in the UK system costs nothing and preserves all options.

New Zealand superannuation: if you have worked in New Zealand, you may have built up New Zealand superannuation entitlements independently of any UK transfer decision.

Compliance Caveat

KiwiSaver rules, HMRC's ROPS requirements, and the OTC exemption framework are all subject to change. This guide reflects the position as of 2026, but rules evolve and individual circumstances differ greatly. Nothing in this guide constitutes financial or tax advice. Always obtain regulated advice from an FCA-authorised adviser (or an equivalent regulated adviser in New Zealand) before transferring any UK pension. The value of pension assets can fall as well as rise.

How Global Investments Can Help

Global Investments advises internationally mobile individuals holding UK pension assets who are considering emigration to or permanent residence in New Zealand. We can assess whether a KiwiSaver QROPS transfer genuinely serves your retirement objectives, given your residency status, tax position, and access requirements.

We work alongside New Zealand-based tax and financial advisers to ensure the cross-border picture is fully understood. Our pension transfer advice is subject to a full regulated suitability assessment, and we will never recommend a transfer that is not in your demonstrable best interest.

Contact us for a confidential initial review of your pension options.