ozzy state pension and transfers :)

[JimandBarbinAus]

Hi would really apreciate some simple advice/thoughts...

 

im 34 and paid uk taxes for 12 qualifying years, hubby 33, paid uk taxes for 16 qualifying years.

 

question 1 - will we be able to claim this when we are 65 and ozzy citizens living in oz? (we are moving next year on perm visas)

 

question 2 - ive heard australias state pension is called age pension - what is the qualifying criteria for this and ive heard it thru the grapevine its means tested? does anyone know how it works?

 

thanks xxx:biglaugh:

[ian mc]

I am not 100 % sure on this but I think you need to have 20 years paid into national insurance before you can claim a pension from the uk. You can buy years to make it up to the 20 years I think. If you look at this It will tell you more than I can

http://www.pomsinadelaide.com/forum/money-finance/12333-backdating-ni-contributions-uk-state-pension.html

[RockDr]

I thought you got a percentage? so if you've worked 10yrs, you'd get 50% of a pension, etc.

[Andrew from Vista Financial]

Just a quick summary as there have been changes since that previous post.

 

A person now needs 30 qualifying years for a full State Pension regardless of whether they are male or female.

 

You now only need 1 qualifying year to be entitled to something and you will receive the State Pension in proportion to the qualifying years you have accrued.

 

So as an example the full Basic State Pension BSP is approx 102 GBP a week if you had 20 qualifying years you would be entitled to 2/3 approx 70 GBP a week.

 

It is possible in a lot of cases to top up qualifying years if you need to by backdating missed years (up to 6 years generally) and then pay as you go each year.

 

To note that once somebody living in Australia is receipt of the UK State Pension the payments are not indexed each year in line with the cost of living as they are in UK/Eurozone and instead remain flat.

 

Regards,

 

Andy

[Guest smurph]

and i heard or read somewhere.. that it is the rate you left the uk so for example if the pension is 100 pound per week know and you left the uk today, if you have the 20yrs qualifying you will get the 100 pound per week once you retire...regardless if the current rate of your retirement year is 200pound... i think ????

[JimandBarbinAus]

Hi all, thanks for the usefull replies. Im just wondering andrew, or if anyone else knows this... The ozzy pension is means tested by testing your assets, could you elaborate on what exactly they mean by assets? (no rude answers please! )

[JimandBarbinAus]

I also know it has a monthly income threshold too

[Andrew from Vista Financial]

Hi Jim and Barb

 

Yes the Age Pension is means tested based on Assets and Income.

 

Currently the maximum Age Pension for a couple is around $28,500 annually.

 

The threshold for the assets test to receive full Age Pension is $265,000 for a couple who are homeowners.

 

The threshold for the income test to receive full Age Pension is $6,864 annually for a couple.

 

Once over these thresholds only part pension is paid and is reduced gradually the higher over the assets and income thresholds you go.

 

As an example for a couple who are homeowners (the home is excluded in most cases) who have $500,000 in assets that are assessable by Centrelink, they would have their Pension reduced to the lowest amount under the assets test and would have their Age Pension reduced to around $19,000 annually.

 

As an example for a couple who have annual income of $30,000 that is all assessable by Centrelink, they would have their Pension reduced to around $17,000 annually.

 

So although the initial thresholds seem quite low their is still scope to receive part pension up to much higher levels before being cut out entirely.

 

Also their are some strategies that exist around reallocating assets that can help increase the Age Pension.

 

Hope this helps shed some light on it for you.

 

Regards

 

Andy