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Andrew from Vista Financial

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Andrew from Vista Financial last won the day on January 20 2017

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About Andrew from Vista Financial

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    Financial (Pensions) Adviser

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  1. Andrew from Vista Financial

    How much do you need to retire in Australia in 2021?

    I thought you were asking for a friend
  2. The chairman of the British Pensions in Australia (BPiA) organisation, James (“Jim”) Tilley has died in Sydney. He was 83. He will be remembered as a fiercely committed champion of British expats penalised by the UK’s frozen pensions policy. Full story here: https://www.smh.com.au/national/champion-of-british-expats-battled-for-improved-pensions-rights-20210823-p58l3c.html I know that although unsuccesful in his bid he has helped many UK expats understand their entitlements and make top up payments if appropriate. RIP Jim.
  3. Andrew from Vista Financial

    How much do you need to retire in Australia in 2021?

    Yes it does obviously depend on a lot of things however this is a very good guide, it is updated for each previous quarter and has a detailed budget breakdown available too (as well as covering for a modest or comfortable retirement): https://www.superannuation.asn.au/resources/retirement-standard But the figures you have suggested are not too far away and from my experience the $62,828 for a couple (table below) is pretty close for most, for my higher net worth clients they might target $80,000 - $100,000 but this would tend to be because of their travel intentions. For a lot of clients we will target a tapered income as it's earlier on in retirement that most of the travelling is done. Budgets for various households and living standards for those aged around 65 (March quarter 2021, national) Modest lifestyle Comfortable lifestyle Single Couple Single Couple Total per year $28,254 $40,829 $44,412 $62,828
  4. Andrew from Vista Financial

    What Vista Financial Services can do for you

    Hi Marisa This is an old post and was brought back to life yesterday by a spammer (now deleted), however yes currently as far as I know there is only one public offer Super Fund that is a (Q)ROPS meaning that it is able to accept UK Pension Transfers
  5. Andrew from Vista Financial

    Transfer UK private pension to Australia

    Hi I believe that there is a requirement for a certain amount of posts before being able to PM but not sure what that number is. Anyhoo, you are able to reach me on Andrew@vistafs.com.au :)
  6. Andrew from Vista Financial

    Transfer UK private pension to Australia

    P.S Non Australian Advisers may work on commissions and in a lot of cases these will not be fully disclosed and can be very high which is a terrible practice (ultimately commissions result in higher product fees which then directly erode your money), therefore best bet is to work with either an Australian (ASIC) or UK (FCA) regulated Adviser.
  7. Andrew from Vista Financial

    Transfer UK private pension to Australia

    Hello 1) Yes this would vary from person to person, it may or may not. 2) Yes UK rules permit access from age 55 on private pensions and yes for perm residents/citizens this is assessed in Australia for tax. 3) Licensed Australian Financial planners work on an agreed fee (not commission) for Advice and if a transfer is recommended a further agreed fee (not commission) for them to implement. Typically the fee can be deducted from the transferred funds if a transfer occurs, if a transfer is not recommended or a better alternative strategy exists (Ken above touched on a potential one) then the Advice fee may need to be paid directly or deducted from a different super fund if the strategy involves contributions to it. Hope this helps. Andy
  8. Australians will be better off under the Federal Government’s Your Future, Your Super (YFYS) reform package which could result in higher superannuation returns and lower fees, experts say. But views are mixed on whether a performance test will be enough to identify underperforming funds. Performance test call out underperforming funds The central plank of the reforms, passed by federal parliament earlier this month, requires MySuper products to be subject to an annual performance test which assesses the actual performance of a fund, net of fees and taxes starting from 1 July 2021. If you haven’t chosen a super fund, your employer must pay your super into a MySuper fund. Each year, the Australian Prudential Regulation Authority (APRA) will construct an individual benchmark for every MySuper product. When a fund fails the performance test, it will be required to tell super members and refer them to a new YourSuper comparison tool that can help members “select a better performing fund”. Persistently underperforming products will be prevented from taking on new members. The test will extend to non-MySuper funds from July 2022. Emanuel Datt, chief investment officer of Datt Capital, believes the performance test is adequate to alert consumers to underperformers. “Superannuation is an investment that should be taken seriously from a young age,” he says. “This reform will help consumers select their superannuation funds whilst also providing an incentive for trustees to act in their investors best interests to ensure their long-term success.” Drew Meredith, adviser and partner at Wattle Partners, says the test is “a very simple way to compare the performance of multiple funds in an efficient way.” “While superannuation members have ‘choice’ of fund many fail to utilise this and hence some additional oversight on the performance of this diverse array of funds makes sense.” However, Whitlam Zhang, head of research, Parametric Australia, thinks the performance test is not enough. “While it may identify some underperforming funds, it’s also vulnerable to false positives,” he says. “We agree with industry recommendations that the regulator should also consider risk-adjusted returns.” Australia’s $3.2 trillion superannuation system is the fourth largest in the world, managing the retirement savings of 16 million Australians. According to Treasury, Australian households pay $30 billion per year in superannuation fees. This is more than the $27 billion Australian households pay on their energy bills or the $12 billion they spend on water bills. The total assets in the superannuation system are projected to reach $5 trillion by 2034. Under the current system, the amount of fees that will be paid by members in 2034 would reach $45 billion, according to Treasury documents. ASFA chief executive Dr Martin Fahy says the performance test may unfairly penalise some super funds. He maintains the test should involve two stages, that is, the proposed benchmark test and, if a product does not pass that test, a second assessment as to whether the product is delivering “good member outcomes” and is likely to meet the benchmark going forward. “There can be perils when ‘automating’ decisions that should be subject to human oversight, as we saw with the Robo-debt saga,” he says. “ASIC requires us to warn consumers that past performance is not always the best indicator of future performance. Many funds may have recently reduced fees and we know that will enhance performance outcomes. This should be considered before good funds are consigned to the scrap heap.” Stapling to stop fees from accumulating From 1 July 2021, employers must not longer automatically create a new superannuation account in their chosen default fund for new employees when they do not decide on a superannuation fund. Instead, employers will need to obtain information about the employee’s existing superannuation fund from the ATO. Stopping the creation of millions of unintended multiple accounts by employers will alone boost balances in super by about $2.8 billion by avoiding duplicate fees and lost returns over the next decade, Treasury claims. Overall, Your Future, Your Super changes will save Australians $17.9 billion over 10 years. Wattle Partners’ Meredith says this is a very positive step. “The stapling of accounts is a much-needed change,” he says. “As an adviser, we regularly see younger clients with three sometimes four industry super funds where they started work in hospitality or retail and then transitioned. Whilst industry funds are low cost, their fixed admin fee is actually high for smaller balances. “This has the potential of actually getting younger works to engage with their superannuation, rather than view it as someone else’s money. This will reduce cost and duplication as well as simplify insurance coverage given the overlap that can exist where multiple accounts are held.” However, while stapling fixes the problem of multiple accounts, Parametric’s Zhang says stapling shouldn’t have started until all super funds and all options – including choice options – were subject to the performance test. “As it has ended up, members could be stapled to underperforming funds,” he says. Insurance opt-in Other Your Future, Your Super changes relate to insurance coverage, requiring that insurance is offered only on an opt-in basis by super funds for those aged under 25 years. This is so young people don’t pay for insurance they don’t need. Cbus has voiced its concerns about these reforms saying its member-base in dangerous professions could miss out on getting the insurance they need once an individual superannuation account is ‘stapled’ to a member and stays with them for life. “If the government’s ‘stapling’ proposal does commence 1 November 2021, surely hazardous workers should be made exempt until at least after the exclusions review is complete,” Cbus chief executive Justin Arter says. “Workers in hazardous occupations are at risk of being stapled to a fund containing exclusions or unfavourable [insurance] terms and conditions because their existing insurance cover has not been tailored to their new job.” Superannuation guarantee increase From 1 July 2021, the Superannuation Guarantee (SG) rate will increase from 9.5 per cent to 10 per cent. “The long-overdue increase in the Super Guarantee will go some way to address the structural imbalances that continue to occur between fat profits and flat wages,” ASFA’s Fahy says. By Nicki Bourlioufas Nicki Bourlioufas, is a Morningstar contributor. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar.
  9. Andrew from Vista Financial

    Claiming NHS Pension

    Happy for you to buy me a pint next time you are in Adelaide!! Seriously though, glad you found my comments useful
  10. Andrew from Vista Financial

    Claiming NHS Pension

    It's fine, happy to answer questions generally, time permitting. You are right the NHS do not provide a historic transfer value however you are not looking for a historic transfer value, you are simply trying to understand what your benefits were worth ie annual pension/lump sum, when you arrived. If your time of arrival was close to when you left the NHS they do provide benefits figures for date of leaving, alternatively you may have a statement of some form showing what your annual pension was close to when you arrived (typically with the NHS the lump sum is 3x annual pension): https://www.nhsbsa.nhs.uk/sites/default/files/2018-10/Retirement Guide %28V24%29 print version - 05.2018 .pdf Failing all of that then a calculation would need to be carried out by essentially working back (or forward if you have benefits from date of leaving and this is not close to you arriving in OZ) by using the method of revaluation that applies (this would be mainly CPI/RPI (perhaps an element at a fixed rate if there is any GMP involved). If need be the ATO will give a private ruling on it, if you provide them with all of the revelant information: Applying for a private ruling | Australian Taxation Office (ato.gov.au) Regards the assessment of the growth of the lump sum, there is no special rate of tax it is simply added to marginal tax rate in the year of receipt. Hope this helps. Andy.
  11. Andrew from Vista Financial

    Claiming NHS Pension

    You are correct it is a defined benefit scheme, if you have a statement around the time you arrived in Australia that should give you the value of the lump sum.
  12. Andrew from Vista Financial

    Claiming NHS Pension

    Hello Purely from the point of view of answering you questions factually. The lump sum as rammygirl points out should not be assessed as income but rather a lump sum from a foreign super fund, see here: Lump sums from a foreign super fund | Australian Taxation Office (ato.gov.au) this broadly is generally based on the growth since a person arrives in OZ to the point of receipt of the lump sum and converted to OZ dollars at that time. Re the pension income, as Marisa points out isn't really a choice and typically Australia will have taxing rights on UK pension income for OZ residents. You have mentioned reducing taxable income by using the concessional contribution catch up rules: Concessional contributions cap | Australian Taxation Office (ato.gov.au) this certainly can be a good way for someone to reduce taxable income in certain circumstances, note also that concessional contributions do attract a 15% tax which is deducted from within the Super Fund. Regards Andy
  13. The last significant changes to super were made back in July 2017. Since then, things have motored along quite nicely with just some minor tweaking by Government along the way. However, on 1 July 2021, several aspects of super will be changing – for the better, for most. Let us spend few moments looking at just how our super might be changing from 1 July 2021. 1. Superannuation Guarantee Superannuation Guarantee, or SG as it is often known, is the basis of the compulsory superannuation system. Employers are required to contribute a set percentage of their employees’ salary to superannuation, for most employees. The current rate is 9.5% per annum. The rate is set to increase to 10% from 1 July 2021. While many employers pay their employees’ SG on top of their wage or salary, some employees may notice a small reduction in their take-home pay. Where an employee is paid a salary package that includes super, the increase in the SG rate may be absorbed into the total package. That is, the package does not increase, but the amount allocated to SG increases while, at the same time, reducing take-home pay. There can be significant penalties for employers that fail to pay the correct rate of SG to superannuation fir their employers. 2. Concessional contributions Concessional contributions include contributions made by an employer, including SG, and personal contributions made by an individual who is planning to claim a tax deduction for those contributions. Up until 30 July 2021, the cap, or maximum amount of concessional contributions that can be made without incurring a tax penalty is $25,0001 per person. From 1 July 2021, the annual cap will increase to $27,500. 3. Non-concessional contributions Non-concessional contributions are contributions a person makes on their own behalf, or contributions they make for an eligible spouse. These are generally made from after-tax income and are not tax deductible. The annual cap, or limit that applies to non-concessional contributions is $100,000 however, from 1 July 2021, this will increase to $110,000. Provided a person was aged under 65 at the start of the financial year in which they intend to make a non-concessional contribution, they may bring forward up to three years contributions and make non-concessional contributions of up to $300,000 ($330,000 from 1 July 2021). However, there are some restrictions on making non-concessional contributions. Firstly, to be eligible to make a non-concessional contribution, a person must have a total superannuation balance of less than $1.6m. The total superannuation balance is the total of all amounts that person has in superannuation at the end of the previous financial year. From 1 July 2021, the total superannuation balance limit will increase to $1.7m. Therefore, to make a non-concessional contribution in 2021-22, a person will need to have had a total superannuation balance on 30 June 2021 of less than $1.7m. From 1 July 2021, a person aged under 652 on 1 July 2021 will be able to make the following maximum non-concessional contributions using the three-year bring forward arrangement: Total superannuation balance on 30 June 2021 Maximum contribution $1.7m or more $0 $1,590,000 or more, but less than $1,700,000 $110,000 $1,480,000 or more, but less than $1,590,000 $220,000 Less than $1,480,000 $330,000 When wishing to maximise contributions using the three-year bring forward arrangement, it may not be possible to make any further non-concessional contributions during the following two financial years. If intending to make contributions using the three-year bring forward, it is important to seek appropriate financial advice before making any contributions. Exceeding the non-concessional contribution cap can have adverse tax consequences. 4. Transfer balance cap The transfer balance cap is the maximum amount a person can use to commence a retirement pension or income stream within the superannuation environment. The current cap is $1.6m. The transfer balance cap is to be indexed by $100,000 and will increase to $1.7m from 1 July 2021. However, where a person has already commenced a pension and has had amounts counted against their transfer balance cap, only the unused portion of their transfer balance cap will be indexed on a proportionate basis. By way of example, if a person has previously had $1.6m counted against their transfer balance cap, their cap will not be indexed as they have no unused cap. Alternatively, where $800,000 has been previously counted against the transfer balance cap, the 50% of the transfer balance cap remains unused. As a result, the transfer balance cap will increase by $50,000 (i.e., 50% of $100,000), making the unused cap now $850,000. Where to from here? While indexation of certain caps from 1 July 2021 will improve the opportunities for many people, they come with traps for the unwary. When looking to maximise superannuation contributions, or the amount that can be applied to the pension phase of super, seeking appropriate financial advice from a qualified financial planner is highly recommended, to avoid many of the potential pitfalls. 1. Unless a person is eligible to carry forward the unused portion of their concessional contribution cap that has accrued since 1 July 2018. The ability to carry forward the unused portion of the concessional contribution cap is subject to meeting certain conditions. 2. This age limit was due to increase from 1 July 2020 to under 67 at the start of the financial year however, the amending legislation has not been passed yet. By Peter Kelly on 9 June 2021
  14. Andrew from Vista Financial

    UK Pension

    Hello Regards the UK Pension wiping out the Australian Age Pension dollar for dollar this is not the case, I understand it used to be when there was a social security however this ended in 2001: Termination of the Social Security Agreement with the UK - Information for Prospective Migrants | Department of Social Services, Australian Government (dss.gov.au) The way it is considered currently is under the income test: Age Pension - Income test for pensions - Services Australia, essentially any dollar of income (including income from the UK State pension) over the lower threshold reduces the Age Pension by 50c (as Marissa points out above) but if the income reaches the higher threshold (cut of point) then it cuts out completely. However Centrelink also apply an asset test as well: Age Pension - Assets test - Services Australia both tests are carried out and whichever produces the lower result is what the Age Pension payments are based on. So there could be a situation for some in that receipt of the UK State Pension has no bearing on what is received from the Centrelink Age Pension due to the assets test producing the lower outcome. Regards Andy
  15. Andrew from Vista Financial

    Taking my super back to the UK.

    Hi there Thanks for the question however I am a licensed Australian Financial (Tax) Adviser not a UK one so cannot provide advice in this area I am afraid. However looking at your question....does this have any tax implications for my Super. If you did as planned then when you arrive in the UK it would not be Super any longer it would be money in the bank along with any other money you have in the bank when you move back so I think it's unlikely to have any tax implications for your Super. Regards Andy.
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