Pom de Terre Posted February 18, 2013 Share Posted February 18, 2013 Hi All, Great forum here, and my first post. And unfortunately its not an exciting post, it's a dull old pension question and I am only 39! Anyhow, my situation is I have a family of 4 we have got PR 3 months ago, we've been in OZ 2 years. I was just setting up my kids savings accounts at Westpac this afternoon and they showed me a leaflet about moving my pension over from the UK.Apparently if I do it within 6 months of getting PR, then I do not pay tax on the UK fund growth. So my dilemma is that, we are buying a property in Australia so we are committed to living here, I know we will become citizens and be here for at least another 5 years when the kids finish primary school, however long term I cannot commit that I will be a retiree in OZ come 60 years old. I just cannot do that "forever" commitment. So if I decide to move my UK pension over and basically have a full Aussie pension (My current super + UK pension) when I am 60 years old but I decide to live in the UK, does anyone know what tax implications there would be for me. And I assume despite working in the UK for 20 years whether I would get a state pension? It seems to make sense to move my pension over here now and have it all together but open to any advice from folks on here. many thanks Quote Link to comment Share on other sites More sharing options...
Rupert Posted February 18, 2013 Share Posted February 18, 2013 If you are not sure which country you would live in, then maybe best thing is to leave something in each. i.e. leave it where it is. Well that is what I decided, for similar reasons at a similar age to you when we moved. Sorry I cannot answer your actual question though, perhaps tax rules will have changed by then anyway... Quote Link to comment Share on other sites More sharing options...
patsmb Posted February 18, 2013 Share Posted February 18, 2013 Hi All, Great forum here, and my first post. And unfortunately its not an exciting post, it's a dull old pension question and I am only 39! Anyhow, my situation is I have a family of 4 we have got PR 3 months ago, we've been in OZ 2 years. I was just setting up my kids savings accounts at Westpac this afternoon and they showed me a leaflet about moving my pension over from the UK.Apparently if I do it within 6 months of getting PR, then I do not pay tax on the UK fund growth. So my dilemma is that, we are buying a property in Australia so we are committed to living here, I know we will become citizens and be here for at least another 5 years when the kids finish primary school, however long term I cannot commit that I will be a retiree in OZ come 60 years old. I just cannot do that "forever" commitment. So if I decide to move my UK pension over and basically have a full Aussie pension (My current super + UK pension) when I am 60 years old but I decide to live in the UK, does anyone know what tax implications there would be for me. And I assume despite working in the UK for 20 years whether I would get a state pension? It seems to make sense to move my pension over here now and have it all together but open to any advice from folks on here. many thanks If you write to the UK state pensions overseas office in Newcastle Upon Tyne they will give you a State Pension Forecast plus they would then have your details on file for future reference Quote Link to comment Share on other sites More sharing options...
Dorset Posted February 18, 2013 Share Posted February 18, 2013 We're going through the same decisions at the moment and presently have an accountant looking into it .... So far we have gathered that it rather depends on the type of pension. We think our final salary government pensions shouldn't be touched - and be left in the UK. We are presently looking into SIPPs. As far as I know defined benefit schemes are better brought over -but it all depends on your age and personal circumstances. Would recommend professional advice. A few hundred dollars worth of advice may well save many thousands! Quote Link to comment Share on other sites More sharing options...
Notts Posted February 18, 2013 Share Posted February 18, 2013 We're going through the same decisions at the moment and presently have an accountant looking into it ....So far we have gathered that it rather depends on the type of pension. We think our final salary government pensions shouldn't be touched - and be left in the UK. We are presently looking into SIPPs. As far as I know defined benefit schemes are better brought over -but it all depends on your age and personal circumstances. Would recommend professional advice. A few hundred dollars worth of advice may well save many thousands! I think you meant to say 'as far as I know defined contribution schemes are better brought over' - defined benefit and final salary are basically the same thing. Quote Link to comment Share on other sites More sharing options...
flybyknight Posted February 18, 2013 Share Posted February 18, 2013 does anyone have any experience with the self managed super funds, the rules regs etc? im pretty much in the same situation as the op, just exploring options. Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted February 19, 2013 Share Posted February 19, 2013 (edited) Hi All, Great forum here, and my first post. And unfortunately its not an exciting post, it's a dull old pension question and I am only 39! Anyhow, my situation is I have a family of 4 we have got PR 3 months ago, we've been in OZ 2 years. I was just setting up my kids savings accounts at Westpac this afternoon and they showed me a leaflet about moving my pension over from the UK.Apparently if I do it within 6 months of getting PR, then I do not pay tax on the UK fund growth. So my dilemma is that, we are buying a property in Australia so we are committed to living here, I know we will become citizens and be here for at least another 5 years when the kids finish primary school, however long term I cannot commit that I will be a retiree in OZ come 60 years old. I just cannot do that "forever" commitment. So if I decide to move my UK pension over and basically have a full Aussie pension (My current super + UK pension) when I am 60 years old but I decide to live in the UK, does anyone know what tax implications there would be for me. And I assume despite working in the UK for 20 years whether I would get a state pension? It seems to make sense to move my pension over here now and have it all together but open to any advice from folks on here. many thanks Hi That's only the case if you transfer within 6 months of being a tax resident (exempt whilst temporary resident), therefore the fund is likely to be assessable, see here http://www.ato.gov.au/corporate/content.aspx?doc=/rba/content/1012313471677.htm. However transferring a UK Pension to Australia should not be done based on the potential tax implications of transfer as often the tax can be mitigated and also is often not as onerous as made out to be, particularly by Bank Advisers. I agree with Rupert, if someone is not sure that they will be remaining in Australia it's likely not to be advisable to transfer a UK Pension to Australia. What type of Pension do you have? Regarding the State Pension under the current rules you would receive 2/3 rds of the Basic State Pension with 20 qualifying years, it is also possible to top up via voluntary contributions. Regards Andy Edited February 19, 2013 by Andrew from Vista Financial Quote Link to comment Share on other sites More sharing options...
Paddyskip Posted March 23, 2013 Share Posted March 23, 2013 Hi That's only the case if you transfer within 6 months of being a tax resident (exempt whilst temporary resident), therefore the fund is likely to be assessable, see here http://www.ato.gov.au/corporate/content.aspx?doc=/rba/content/1012313471677.htm. However transferring a UK Pension to Australia should not be done based on the potential tax implications of transfer as often the tax can be mitigated and also is often not as onerous as made out to be, particularly by Bank Advisers. I agree with Rupert, if someone is not sure that they will be remaining in Australia it's likely not to be advisable to transfer a UK Pension to Australia. What type of Pension do you have? Regarding the State Pension under the current rules you would receive 2/3 rds of the Basic State Pension with 20 qualifying years, it is also possible to top up via voluntary contributions. Regards Andy Hi there In relation to the State Pension .. I understood that to qualify for a full pension .. a minimum of 30 years contribution was required & 'top ups'/payments were only an option whilst you're still living in/employed in the UK? I've been on the government website & it seems that contributions can be made periodically.. for that reason I plan to leave £ behind in a bank account to drip feed payments into this until I've achieved the 30 year threshold. Cheers Quote Link to comment Share on other sites More sharing options...
northshorepom Posted March 23, 2013 Share Posted March 23, 2013 ALso agree with Rupert and Andrew - if you're not sure where you'll end up, keep a foot in both camps. If nothing else, it's a useful hedge against currency moves (either way) in the future if you have decent pensions in both countries Cashing in a final salary pension and moving it over at today's exchange rate would seem to be the definition of madness from my PoV. You'll never again get pension benefit terms so generous, what you would effectively be doing is paying lots of money (because of current depressed exchange rate) to buy a load of risk. Don't do it. Quote Link to comment Share on other sites More sharing options...
newjez Posted March 24, 2013 Share Posted March 24, 2013 I guess the question is - do you think you might get a more favourable exchange rate sometime in the next 20 years? Quote Link to comment Share on other sites More sharing options...
Guest John Horvath Posted February 16, 2014 Share Posted February 16, 2014 (edited) Hi There Andrew is right we never transfer a fund where the member is unsure whether or not they will remain in Australia. In relation to transfers it will depend on what type of pension you have. State Pension - being the basic state pension - it can not be moved. Other types of state pensions such as the second state pension can be moved. These are most commonly used by Government Departments such as the National Health Service (NHS). In relation to moving back to the UK - should you transfer the pension to Australia and then access it at some point of time as a Pension payment and then move back to the UK - you will be subject to a extra tax if this is within the 5 full financial UK Years of departing the UK. You are not subject to tax on a pension draw down if you are simply returning back to the UK for a short term Holiday. Edited February 17, 2014 by lebourvellec forum rules Quote Link to comment Share on other sites More sharing options...
winter1 Posted February 17, 2014 Share Posted February 17, 2014 (edited) Hi There Andrew is right we never transfer a fund where the member is unsure whether or not they will remain in Australia. In relation to transfers it will depend on what type of pension you have. State Pension - being the basic state pension - it can not be moved. Other types of state pensions such as the second state pension can be moved. These are most commonly used by Government Departments such as the National Health Service (NHS). In relation to moving back to the UK - should you transfer the pension to Australia and then access it at some point of time as a Pension payment and then move back to the UK - you will be subject to a extra tax if this is within the 5 full financial UK Years of departing the UK. You are not subject to tax on a pension draw down if you are simply returning back to the UK for a short term Holiday. I hope the above helps you out. should you have any questions please do not hesitate to contact me John Horvath Andrew from Vista is absolutely right here, The NHS pension is not a second state pension it is the NHS's occupational scheme. The second state pension is (S2p) or Serps which were extra national insurance contributions paid by people who were not in occupational schemes. The NHS pension could theoretically be moved to OZ but as it is a final salary scheme you would have to think very hard. I have a Uk Local Government pension which has recently started to be paid to me, this is index linked for life with a widows pension this is the same sort as the NHS one and I was advised I would be mad to give this up. The second state pension is paid out along with your government aged pension and cannot be transferred. Also the number of years required in the UK Government pension is increasing to 35 for a full pension. Edited February 17, 2014 by winter1 Quote Link to comment Share on other sites More sharing options...
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