There is never a requirement that you must transfer your UK pension funds when you arrive permanently in Australia.

Many UK schemes will suggest to their members to simply leave the funds with them until they retire and then draw down a pension.

There are some instances where this strategy is considered to be reasonable, however, in many cases that can be considered to be very poor advice indeed.

As long as you bear in mind that when you do eventually decide to transfer your funds you will have to account for any fund growth from the date of residency and you will be taxed at the rate of 15% on any increase in value.

At least that tax will be drawn from the funds and not have to be paid by you personally.

If UK IFAs and fund trustees had a working knowledge of the Australian superannuation system and our very favorable tax treatment to retirees, they would inevitably give very different advice.

So, whilst it is not mandatory to transfer, it is certainly well worth the effort to investigate the options and weigh up the benefits of transferring and comparing them to leaving the funds behind.