State Pension - Retirement in Oz

[Guest alan smallman]

Hi to everyone:D

 

I know this sounds like a bit of a daft question, but as we were walking around Cloudy and Cold (with a little break of sun coming thru the clouds) Boston, my wife and I were discussing our favourite subject - Oz. It was the usual stuff really - Are we doing the right thing, what are the pros and cons (the pros seem to outweigh the cons), do we want to stay in Boston for the rest of our lives etc etc. One of us mentioned pensions and before you know it there we were, having already fast-forwarded to the next 20 years, retired and well into our 'beige' period!! Here's the question (it's not about beige tho..) - If you become a permanent resident, does the state (when you do retire) grant you an 'old-age' pension like in the UK? If so, (we'll not be 65 for a good 18 years) but on what will the payments depend? Is there anyone who can clarify and add to this please? I guess we maybe seeing too far into the future, but we would hate to do all the complicated stuff to get out there, then work there for the next 18 years and then find out that we won't get a pension when we retire (perhaps I'm making it sound a little complicated but....you know what I mean?)

 

We're going to go onto the official Immigration dept site but we wondered if anyone could give us an indication. Cheers and remember, one item of beige is OK (after it's a Summer colour) but once you get into beige slip-ons, you're on the 'slippery slope' (actually I have more than my fair share :oso I think I'm well on the way - hence the question about pensions).

 

Best Wishes

 

 

Alan

[Guest Leanne & Mark]

I don't know much about pensions, but from what i've managed to gleen off of others is you have to pay 9% (currently) in to your Superannuation fund when working in oz i.e your pension. If you leave early i think you can get it back. I think also wen you retire you can have it in a lump sum or spread out.

 

Also if you've paid into pension here (National insurance) you can recieve your state pension there but it is frozen at the point you leave and not index linked so you woulcn't get as much as if you had stayed in uk.

if you haven't pd a full 30 yrs i believe you can keep paying ni payments to boost it up to full pension. otherwise you get a % as to how many years you've pd ni for.

[Rachiegarlo]

If you work for someone else they are required to deposit the equivilent of 9% of what you earn in a superannuation fund, this is not deducted from your pay, it is on top. You can then pay in as much as you can afford into the super fund as well.

 

There is a state pension and it's not much about 270ish a week for a single person, so it is advisable to pay into a super fund. Oldies have been campaigning to have these amounts raised. You can get your Uk pension as said above. The pension here is also means tested.

[Guest alan smallman]

Cheers Rache

 

you are a mine of info!!!

 

xx Alan

[Guest alan smallman]

Thanks Leanne & Mark

 

That's good to know.

 

xx Alan

[Guest paul_smart]

Hi to everyone:D

 

I know this sounds like a bit of a daft question, but as we were walking around Cloudy and Cold (with a little break of sun coming thru the clouds) Boston, my wife and I were discussing our favourite subject - Oz. It was the usual stuff really - Are we doing the right thing, what are the pros and cons (the pros seem to outweigh the cons), do we want to stay in Boston for the rest of our lives etc etc. One of us mentioned pensions and before you know it there we were, having already fast-forwarded to the next 20 years, retired and well into our 'beige' period!! Here's the question (it's not about beige tho..) - If you become a permanent resident, does the state (when you do retire) grant you an 'old-age' pension like in the UK? If so, (we'll not be 65 for a good 18 years) but on what will the payments depend? Is there anyone who can clarify and add to this please? I guess we maybe seeing too far into the future, but we would hate to do all the complicated stuff to get out there, then work there for the next 18 years and then find out that we won't get a pension when we retire (perhaps I'm making it sound a little complicated but....you know what I mean?)

 

We're going to go onto the official Immigration dept site but we wondered if anyone could give us an indication. Cheers and remember, one item of beige is OK (after it's a Summer colour) but once you get into beige slip-ons, you're on the 'slippery slope' (actually I have more than my fair share :oso I think I'm well on the way - hence the question about pensions).

 

Best Wishes

 

 

Alan

 

 

Hi Alan,

Maybe I can help, i've only just started to look at moving my pension as I have 3 smallish ones rather than one huge nest egg, basically when you get your TFN (tax file number) from OZ your pension is attached to that, no TFN no money!

you can set up a TFN from the UK and you never loose any money you put into it (ie. I worked over there for a year in 2003 that money is still in my unique TFN), there are no different types of pension, such as employer/government as is here, there is the TFN your money goes into it and that's it.

I guess you will move your pension from here to there (a good move), you will not pay tax on your pension as you do here and you never loose the money that you have worked for, in the UK if I die my better half see's nothing of my pension it disappears into the pot for the government to build another huge tent on another river somewhere.

The TFN goes to your next of kin - the FULL amount and it isn't taxed, they can then pull the money in one hit or take the payments as a suppliment, kids can be part of this also so the money is never lost from the family pot.

there is a company, the name escapes me which will set up the TFN for you and move all of your pension/s into the TFN pot, which you will then pay into for the next 18yrs and be able to pull on the whole lot, you have to live (and work!!) in OZ for 5 years before you recieve any financial help, if you draw the money and it's before 5 years (could be 3) then when it's gone it's gone and you'll be hungry, they really don't like sponging and do their best to discourage it. I will put the name of the company with contact details on here, they charge 3% of monies moved as their fee but you don't have to do anything than supply them the information, If i haven't posted it in a couple of days give me a holler and i'll do it (very busy and working nights at the mo so I may forget, just give me a nudge and i'll remember)

 

Good luck

Paul.

[Guest paul_smart]

oh the super and the TFN are the same to stop confusion

[Guest Bex & Nick]

Here are a few things that we've picked up from our experience. I'm sure that there are others who can add other points in. Ultimately though you should seek advice from a professional advisor.

 

Rachiegarlo mentioned that the state pays a pension.

 

A private pension is referred to as superannuation (or a Super fund for short). This may be linked to your TFN (which is unique and you only ever get one), but they are two different things.

 

Tax File Number

My understanding is that generally speaking you cannot apply for a TFN unless you are in Australia. You can do this online when you arrive:

 

https://iar.ato.gov.au/iarweb/default.aspx?pid=4&sid=1&outcome=1

 

The exception appears to be for non-residents that meet certain conditions (one being that you need to set up an ABN), see:

 

http://www.ato.gov.au/content/downloads/non_resident_tfn_application.pdf

 

Super Funds

There are a number of different Super funds that you can use. Quite often your employer will nominate one but you don't have to use it - you can choose your own Super fund. Have a look at this for some overview information:

 

http://www.ato.gov.au/individuals/content.asp?doc=/content/00098979.htm&pc=001/002/064/001/001&mnu=1101&mfp=001/002&st=&cy=1

 

Your employer will put in 9% (as Rachiegarlo mentioned).

 

If you have a UK pension you can transfer it into your Australian Super fund. However, I think this must be a QROPS scheme. Have a look at the following for a quick guide:

 

http://www.abbeyfinancialsolutions.com/index.php?/doc/page/uk_pension_release/&gclid=CMrNtI6c8JICFQWhiQodEUk0oQ

 

You should think very carefully about transferring your UK pension into a Super fund as once it's transferred it stays there until retirement - you cannot transfer it back to the UK if you decide to return (so you might want to wait until you've decided to stay). You'll need to weigh this up with any tax implications and certainly should seek professional advice.

[Guest paul_smart]

Hi as promised.

 

Pension Transfers direct.:

www.agoodmove.com.au

they will set up a TFN that your superannuation will be linked too, they have offices in WA, SA, NSW and QLD

for SA contact: Scott Noell

Scott.Noell@agoodmove.com.au unit 12,202-208 Glen Osmand RD Fullarton

0061 088 338 2777.

 

Interestingly they have a "migration planner" which gives you an idea of where you should be at what point in time, could be useful (on the website)

 

Definitely talk to these people first about moving your pension, they are the pro's I can only tell you what I've come accorss.

 

Regards.

 

Paul.

[Guest alan smallman]

Many Thanks Paul for the info. We really appreciate your taking time to reply and for pointing us in the right direction. Cheers

 

Alan

[Guest alan smallman]

Bex & Nick

 

Thank you both also for your reply and helpful pointers. We really appreciate the help you and Paul have given us on this one.

 

Cheers

 

Alan

[Guest paul_smart]

No probs, or that should probably be No worries, hope it helps!!

[Andrew from Vista Financial]

Hi Alan

 

Yes if you meet the residential requirements then you are entitled to recieve the a government pension at pension age currently 65 for men (like Uk) and increasing for women to 65 (like UK) via phasing, if born after 1/1/1949 then 65!

 

However it is means tested as mentioned above. There is an assets test and an income test.

 

Again like the UK the government is trying to encourage people to fund their own retirements hence the generous mandatory 9% superannuation guarantee contribution by employers.

 

You can also contribute further to your own superannuation fund (pension Uk equivalent) however there are limits and different ways of doing so to gain maximum tax advantages.

 

Will you be a permanet resident initially or temporary Alan?