2bpepperrogers Posted October 24, 2014 Share Posted October 24, 2014 Hi, My wife and I are both teachers and are moving to Australia in September 2015 (hopefully permanently and getting citizenship as soon as we qualify). I've been teaching for 9 years but she is younger and only in her 3rd year of teaching, some of which has been supply work. We haven't got a clue about how our pensions will work and don't want to end up age 65 with nothing! a. What will happen to our UK pensions? Can we still get these if we are not living in the UK anymore? Is this likely to even be worth it if only been in the job 9 years before leaving? b. How does the Australia pension system work re. state vs private? Trying not to let myself get in a flap about this but everything I read just confuses me even more thanks!! Quote Link to comment Share on other sites More sharing options...
NicF Posted October 24, 2014 Share Posted October 24, 2014 Australia has a compulsory superannuation (pension) system where your employer has to pay at least 9.5% of your salary in to a superannuation scheme. Some employers will pay in more than this and there is the option to put in more in voluntary contributions. You can open a super account with anyone you like - in most cases you don't have to use your employer's superannuation scheme. The superannuation schemes vary in things like costs and charges and investment options in the same way that the UK pension schemes do. I don't think there is such a thing as a final salary scheme here but there are defined benefits schemes around which pay out an amount based on a formula around how long you have been working and how much you have earned. Other schemes are invested in the stock market and you usually have a choice about where your funds are invested. There is a state pension in Australia but this is means tested and not an automatic right and the current government seem keen to erode it's value further. I certainly wouldn't be relying on it as a retirement income. Quote Link to comment Share on other sites More sharing options...
Freckleface Posted October 24, 2014 Share Posted October 24, 2014 You shouldn't think of the Aust Govt pension as a pension. It is supposed to be a safety net for people unable to provide for themselves. Quote Link to comment Share on other sites More sharing options...
Quoll Posted October 24, 2014 Share Posted October 24, 2014 You can (and probably should) continue to make your NI contributions as you never know where you might want to end your days. The Centrelink Age Benefit is a welfare payment for the hard up so shouldn't enter into the equation given that you probably have 30yrs of super contributions ahead of you. My advice to salary sacrifice into super as much as you can and don't leave it too late like some of us did Quote Link to comment Share on other sites More sharing options...
Nearlythere1 Posted October 24, 2014 Share Posted October 24, 2014 https://www.gov.uk/national-insurance-if-you-go-abroad https://www.ato.gov.au/Super/ Couple of links above, first is about continuing your NI overseas, it doesn't cost much and depending on how many years you have to contribute (30 year requirement overall) will entitle you to full UK state pension (fixed at the rate on the day that you start receiving it). The second is a link to the Aussie gov site relating to Superannuation funds etc. I'm still very confused about what to do with my UK pension so can't advise on that one sorry. All the pension transfer companies seem to want a very large slice of the pot, when transferring to an Aussie super. If anyone has any advice on DIY pension transfers, would love to hear them.. :wink: Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted October 28, 2014 Share Posted October 28, 2014 Hi, My wife and I are both teachers and are moving to Australia in September 2015 (hopefully permanently and getting citizenship as soon as we qualify). I've been teaching for 9 years but she is younger and only in her 3rd year of teaching, some of which has been supply work. We haven't got a clue about how our pensions will work and don't want to end up age 65 with nothing! a. What will happen to our UK pensions? Can we still get these if we are not living in the UK anymore? Is this likely to even be worth it if only been in the job 9 years before leaving? b. How does the Australia pension system work re. state vs private? Trying not to let myself get in a flap about this but everything I read just confuses me even more thanks!! Hi You may not actually have a choice with your Teachers Pensions, have a read of this thread although there still may be a slim chance whereby transfers to Oz are allowed: http://www.pomsinoz.com/forum/money-finance/220374-government-response-uk-pension-ban-australia-qrops.html The UK State Pension will be paid to you based upon the number of qualifying years you have accrued on a pro-rata basis, 30 years is currently what is required for full basic state pensions (BSP) therefore 15 years would get you 50%. As mentioned above once the UK State Pension is in payment whilst living in Australia it does not attract the annual inflationary increases and is frozen from that point. It is possible to top up missing years if the full 30 years has not been achieved. Note that there are changes happening in April 2016 where the pension is to become a single tier pension and at this time 35 years will be the amount of years required to receive the then full amount. Have a look at this thread also: http://www.pomsinoz.com/forum/financial-advice-ask-vista/165251-australian-age-pension-information-thread.html Hope this helps, Andy Quote Link to comment Share on other sites More sharing options...
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