davidtiffen Posted February 3, 2013 Share Posted February 3, 2013 Can anyone recommend suitable advisor regarding pensions as we are due to move to oz this year and have no idea what to do with our pensions and whether we can get any tax rebate from HMRC. Also any ideas on health insurance companies and approx costs for moving to oz, just want to be sure we are well covered. thanks for any help Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted February 3, 2013 Share Posted February 3, 2013 Hi David Are you talking about the State Pension or Private/Company Pensions? If the State Pension then you cannot transfer this to Australia but you will be able to receive your entitlements in Australia when you reach State Pension Age (SPA) albeit they wil not increase with the cost of living once in payment like they would if you were still living in the UK. It may also be possible for you to top up your qualifying years voluntarily in Australia if you do not have the maximum years applicable. If you are referring to Private/Company Pensions please have a look at this thread it will give you a few pointers Overview - UK Pension Transfers to OZ, as explained in the thread these can be transferred to Australia and it is a good idea to investigate your options at some point however I generally advise my clients to wait until they are settled in Australia and feel it is their intent to remain before exploring a transfer with them. Also what visa are you going to be coming on? This in actual fact will potentially have a bearing on all of your questions and things can be very different depending on your visa situation! Regards Andy Quote Link to comment Share on other sites More sharing options...
davidtiffen Posted February 6, 2013 Author Share Posted February 6, 2013 Hi Andy Thanks for your comments, funny really as found your website recently and was going to contact you once we arrived in Oz hopefully in June this year on financial matters. I was talking about Private Pensions which we have but also can we claim the UK state pension as we have been paying our National Insurance Contributions for many years. My wife and I are coming over on a Skilled (Migrant) (class VE) subclass 175 (Skilled -Independent) Regards David Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted February 7, 2013 Share Posted February 7, 2013 Hi David Happy to touch base with you when you get here, where are you going to be located? Yes the State Pension can be claimed when you live in Australia and can be paid directly here (albeit the amount you receive once in payment will not index with the cost of living like it does in the UK), the amount you get will be based on the number of qualifying years you have accrued (and it is possible to top up if short), currently 30 years is the maximum (this is changing in around 2017 see here UK State Pension changes ). Hope this helps and good luck with you plans. For future reference my direct email is andrew@vistafs.com.au Kind regards Andy Quote Link to comment Share on other sites More sharing options...
natashaandanaya Posted February 7, 2013 Share Posted February 7, 2013 Going off at a bit of a tangent, but maybe u may be able to help.... my husband has a final salary uk pension, which he has had for over 20 years. Even if he stays at the company when we get to oz, the company have said that the pension cannot be put into the local company pension? My hubby is unhappy about leaving this, and thinks he will need to contribute 30% of his aus salary into a pension to maintain this.. do u have any ideas about this? At the moment his uk pension worth 38k Gbp, but if we stayed in uk and he stayed at the same company at 60 he would have minimum 60kgbp... help! He is 42 at mmoment any ideas and thoughts would be great Many thanks natasha Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted February 11, 2013 Share Posted February 11, 2013 (edited) Going off at a bit of a tangent, but maybe u may be able to help....my husband has a final salary uk pension, which he has had for over 20 years. Even if he stays at the company when we get to oz, the company have said that the pension cannot be put into the local company pension? My hubby is unhappy about leaving this, and thinks he will need to contribute 30% of his aus salary into a pension to maintain this.. do u have any ideas about this? At the moment his uk pension worth 38k Gbp, but if we stayed in uk and he stayed at the same company at 60 he would have minimum 60kgbp... help! He is 42 at mmoment any ideas and thoughts would be great Many thanks natasha Hi Natasha So from what you are saying I take it that your Husband is transferring to Australia with the same company he works for in UK but the Australian division?? So essentially he is going to become a deferred member of the current Pension Scheme he is in?? Generally when people move to Australia they have the option of leaving their Pension in the UK and with final salary schemes generally the benefits that have been accrued thus far are maintained and will increase each year with cost of living generally linked to the Consumer Price Index (CPI). Alternatively they may transfer the Pension to Australia, what happens with a final salary scheme is that the UK Pension company will get an Actuary to calculate what is known as a Cash Equivalent Transfer Value (CETV) and this is the sum offered that is then transferred to Australia and invested meaning that they lose the right to claim any further pension benefits from that UK scheme in the future. Whether to transfer a UK Pension is quite an important decision and especially when someone has a final salary scheme. I suggest that advice should be sought as to where one’s retirement benefits might be better placed given the type of scheme and all of the other factors that may come into play based on individual circumstances. What visa will you be coming over on? This could also have a bearing on things. There generally isn’t a need to make a decision whilst in the UK and it generally makes sense to wait until you have experienced Australia and feel that it is your intention to remain here before embarking on taking advice. Kind Regards Andy Edited February 11, 2013 by Andrew from Vista Financial Quote Link to comment Share on other sites More sharing options...
frankChartered Posted February 11, 2013 Share Posted February 11, 2013 Natasha, Your husband is correct in believing a defined benefit pension is a valuable asset and the level of personal contributions to match such a benefit can be very high. Consulting a UK adviser is your first step they will be able to explain to you the real value of your current benefit and the implications of leaving the scheme. They will also be able review the current scheme rules and any escalation benefits. In general it rarely makes sense to transfer out of a defined benefit scheme unless there is a doubt on the ability of the employer to meet its commitment. Any decision needs to take account of your personal circumstances, marginal tax rates and long term plans and obtain professional advice. Ideally try to find an adviser that is qualified in the UK and Australia otherwise you tend to get one side of the story. Best of luck Going off at a bit of a tangent, but maybe u may be able to help....my husband has a final salary uk pension, which he has had for over 20 years. Even if he stays at the company when we get to oz, the company have said that the pension cannot be put into the local company pension? My hubby is unhappy about leaving this, and thinks he will need to contribute 30% of his aus salary into a pension to maintain this.. do u have any ideas about this? At the moment his uk pension worth 38k Gbp, but if we stayed in uk and he stayed at the same company at 60 he would have minimum 60kgbp... help! He is 42 at mmoment any ideas and thoughts would be great Many thanks natasha Quote Link to comment Share on other sites More sharing options...
ozziepom1963 Posted February 11, 2013 Share Posted February 11, 2013 Hi Andy, I'm needing a bit of advice my mum has got to the final stages of her contributory parent visa at the age of 75, my father was due to come with her but he passed away in August last year:( Mum will have her state pension and a small pension dad set up for her which she gets 2 small payments a year. She will have a small amount of savings too. She will live with us. She has a house in the uk but my sister will live in it till her LRR or a work sponsor visa is approved. Will mum have to pay any taxes? Will she be able to qualify for anything here other than the senior card when she makes her final entry? Thanks in advance Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted February 13, 2013 Share Posted February 13, 2013 Hi Ozziepom Sorry to hear about your Father. The information provided seems very tax specific orientated and there certainly isn't enough information provided to understand your Mum's full situation so as to be able to determine her tax position. Will youir Mother be a permanent resident or on a temporary resident visa as this makes a difference. Permanent residents of Australian generally have to declare their worldwide income for assessment in Australia, generally permanent residents receiving UK Pension payments in Australia would declare these for assessment in Australia. Have a look at this thread re the Australian Age Pension http://www.pomsinoz.com/forum/pension-transfers-ask-vista/165251-australian-age-pension-information-thread.html it explains residence eligibility. I would suggest that when your Mother does arrive you look to seek an appointment with an Accountant and they should be able to assist from a taxation perspective. Regards Andy Quote Link to comment Share on other sites More sharing options...
frankChartered Posted February 14, 2013 Share Posted February 14, 2013 The issues you are facing are common one for retirees moving to Australia. The use of the words small pensions preclude you from any assistance from a financial adviser. As your mom is just arriving in Australia she will not qualify for the aged pension ( Requires 10 year residence). As she is moving to live with you in Australia she will need to advise HRMC of her departure by completing (form p85). This will allow her receive pension income gross (not subject to UK tax). If you rent out her property it will be subject to the standard rate of tax in the UK irrespective of her Australian visa status. That said as a UK citizen she will qualify for a personal allowance. If the rental income is below her personal allowance she can apply for the income to be paid gross (form NRL1) There are number of residency rules but as it is your mothers intention is to live with you in Australia, her UK income will be subject to Australian tax. She will receive a credit for any tax withheld in the UK. Given the level of income suggested, tax may not be payable unless the rental income is substantial. Given your mothers age, the cost of health care should be the main focus. While she will have access to Medicare there is a two year waiting for other benefits such as as the health card are other entitlements. Hope this helps Hi Andy, I'm needing a bit of advice my mum has got to the final stages of her contributory parent visa at the age of 75, my father was due to come with her but he passed away in August last year:(Mum will have her state pension and a small pension dad set up for her which she gets 2 small payments a year. She will have a small amount of savings too. She will live with us. She has a house in the uk but my sister will live in it till her LRR or a work sponsor visa is approved. Will mum have to pay any taxes? Will she be able to qualify for anything here other than the senior card when she makes her final entry? Thanks in advance Quote Link to comment Share on other sites More sharing options...
Hammer in the West Posted February 15, 2013 Share Posted February 15, 2013 For those in WA that want to meet someone face to face to discuss rhis topic, please contact me. I can help with the background information needed to understand the benefits of making the transfer to Super from a UK pension, arrange for a free valuation and search for lost pensions, then put you in touch with a highly experienced Financial Planner of 14 years if its appropriate for you to have that conversation (again for free). Cheers Pom since November, an ex-Essex dad of 1. Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted February 15, 2013 Share Posted February 15, 2013 (edited) The issues you are facing are common one for retirees moving to Australia. The use of the words small pensions preclude you from any assistance from a financial adviser. As your mom is just arriving in Australia she will not qualify for the aged pension ( Requires 10 year residence). There are number of residency rules but as it is your mothers intention is to live with you in Australia, her UK income will be subject to Australian tax. She will receive a credit for any tax withheld in the UK. Given the level of income suggested, tax may not be payable unless the rental income is substantial. Given your mothers age, the cost of health care should be the main focus. While she will have access to Medicare there is a two year waiting for other benefits such as as the health card are other entitlements. Hope this helps Hi Frank "The use of the words small pensions preclude you from any assistance from a financial adviser" Not sure I agree with this statement, I have many clients that do not have big pensions, Financial Planners/Advisers do not just provide advice to people with medium/big pensions. "There are number of residency rules but as it is your mothers intention is to live with you in Australia, her UK income will be subject to Australian tax" Are you sure about this Frank? I actually beg to differ as there are situations whereby a person can be Australian resident for tax purposes but not have to declare worldwide income. Frank are you an Accountant as it might be useful to include your credentials in your signature so that people are aware who is providing them advice. Kind Regards Andy Edited February 15, 2013 by Andrew from Vista Financial Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted February 15, 2013 Share Posted February 15, 2013 (edited) Hi Ozziepom I might suggest that you speak to Alan Collett who is a member on here and qualified for tax advice in both the UK and Australia, he will be able to give advice on your Mum's circumstances once he has understood her full position. Kind Regards Andy Edited February 15, 2013 by Andrew from Vista Financial Quote Link to comment Share on other sites More sharing options...
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