Nearlythere1 Posted October 5, 2014 Share Posted October 5, 2014 So, are there any reliable, Government sponsored websites that advise on Super, and which Supers to go for etc? Do I have to go with a specific Super fund when I'm employed or do I just tell my employer which one it is? :confused: Link to comment Share on other sites More sharing options...
Marisawright Posted October 5, 2014 Share Posted October 5, 2014 Or is supperanuation a massive massive rip off. Not really. If your super fund isn't looking after you, change super funds. They are not all the same. I'm with an industry super fund (e.g Australian Super, CBus, Hestia) and in general, their fees are much lower. There was an article in the papers recently which showed that the retail funds manage only 29% of the money invested in super, but charge 56% of the fees! The important thing to understand is that your super belongs to you, it's not a government thing or an employer thing. Yes, your wife needs to consolidate her accounts and it won't cost her extra fees. There are a few unscrupulous funds that try to scare you with horror stories if you try to transfer, they're devious and just trying to hold on to your money. All the more reason to get away from them as fast as possible if that's their attitude IMO! Basically super is forced saving. You're complaining because that money is being put away out of your reach and you feel you could do better elsewhere - but would you, really, or would it wind up getting spent? Most people, when they're young, don't put enough thought into how they'll survive in their old age. I certainly didn't - so I'm glad, now, that the superannuation system forced me to put some money away for a rainy day. Link to comment Share on other sites More sharing options...
Nearlythere1 Posted October 5, 2014 Share Posted October 5, 2014 Think I'll start here.. http://australia.gov.au/topics/economy-money-and-tax/superannuation :jiggy: Anyone recommend any GOOD independent financial advisers lol? :wink: Link to comment Share on other sites More sharing options...
Gbye grey sky Posted October 5, 2014 Share Posted October 5, 2014 I intend to be in Australia in retirement. Problem is, I have a Civil service pension, and all the Pension transfer companies obviously say "get your pension out quick", well that might have something to do with the large % commission they get if I do. So, I'm a bit sceptical of their advice. Do independent financial advisers usually have enough international knowledge to give good balanced advice on the pros and cons of both UK and AUS? Along with the knowledge of the best Supers in Aus against returns when leaving it in the UK? :confused: I also have a Civil Service pension so this is an active matter for me at the moment. Crucially there may be some exemptions to the April 2015 time limit and being an ex-pat may be one of those. We will not know until next month when the government release their autumn budget statement. I have a meeting booked in December with a financial advisor I was directed to by Moneycorp. If you PM me I will be happy to tell you who though it will not be an endorsement. One way or the other advice on this will need to be paid for. For me too it is important that this is not commission and yes there are plenty out there with vested interests in us transferring out our Civil Service pensions. Link to comment Share on other sites More sharing options...
Nearlythere1 Posted October 5, 2014 Share Posted October 5, 2014 I also have a Civil Service pension so this is an active matter for me at the moment. Crucially there may be some exemptions to the April 2015 time limit and being an ex-pat may be one of those. We will not know until next month when the government release their autumn budget statement. I have a meeting booked in December with a financial advisor I was directed to by Moneycorp. If you PM me I will be happy to tell you who though it will not be an endorsement. One way or the other advice on this will need to be paid for. For me too it is important that this is not commission and yes there are plenty out there with vested interests in us transferring out our Civil Service pensions. Thanks Gbye grey sky, Do you know if you actually need to use a pension transfer company to transfer? Can this be done any other way, independently? The commission fees from these transfer companies seem to be quite high.. I will speak to my SIL next week in Brisbane, as she has been in Banking most of her life, to see what her take is on this? :notworthy: She left the UK around 15 years ago, so hopefully will have a good handle on it all by now.. Will post anything significant ref transfers.. :wink: Link to comment Share on other sites More sharing options...
Eera Posted October 5, 2014 Share Posted October 5, 2014 If you really care about it, you can self-manage your super fund; my in laws do that; they had nothing when they were 55, and now have well over $4 million in their 70's, but they know how to play the stock market and how to do it well. Personally I don't and wouldn't risk it, which is why I pay an annual fee of about $100 or so and the super fund does it for me, returning an average of 14% or so over the last 10 years, even taking into account the bad few years so I'm more than happy with that. If you really think you could do better with a high interest account you can choose to have your super put into cash only, which is just that, but it's not recommended unless you are close to retirement as over the long term you will not make anywhere near the return that diversified investments will give. All that info is available through the product disclosure document that super finds give out. Link to comment Share on other sites More sharing options...
Gbye grey sky Posted October 5, 2014 Share Posted October 5, 2014 Thanks Gbye grey sky, Do you know if you actually need to use a pension transfer company to transfer? Can this be done any other way, independently? The commission fees from these transfer companies seem to be quite high.. I will speak to my SIL next week in Brisbane, as she has been in Banking most of her life, to see what her take is on this? :notworthy: She left the UK around 15 years ago, so hopefully will have a good handle on it all by now.. Will post anything significant ref transfers.. :wink: The raising of this particular question was the basis for Moneycorp referring me to this advisor so my understanding at the moment (to be clarified) is that you you don't need to transfer your funds via these companies and can take advantage of higher rates too (as well ase set rates/timings even. These things and more will form my discussions in December. The more I learn about this the less I know.........or so it seems. I have a sneaking suspicion that I will end up keeping my Civil Service pension but at the very least I would like to be reassured in my own mind that it was the best decision. Link to comment Share on other sites More sharing options...
Celt Down Under Posted October 5, 2014 Share Posted October 5, 2014 Sounds great, though I thought you needed around 30-35 years of contributions to get UK state pension? Or is it a UK private pension scheme?:confused: You get a percentage of the total. It is the government pension, not a private one. I can also claim my private one that I paid into for 11 years. I am not quite sure what the total amount it, but lets call it 35 years. If I worked for 16 years over there, I would be entitled to 16 35ths of the amount etc. You also have the option to continue paying your "stamp" as we called it while living here, but if you have not and are coming up to retirement age, you can backpay 6 years to increase your pension amount. We opted not to do that, and are quite happy with what we will be able to claim from the UK. What pension you do receive from there, has to be declared to the tax authorities here though. Link to comment Share on other sites More sharing options...
Nearlythere1 Posted October 5, 2014 Share Posted October 5, 2014 You get a percentage of the total. It is the government pension, not a private one. I can also claim my private one that I paid into for 11 years. I am not quite sure what the total amount it, but lets call it 35 years. If I worked for 16 years over there, I would be entitled to 16 35ths of the amount etc. You also have the option to continue paying your "stamp" as we called it while living here, but if you have not and are coming up to retirement age, you can backpay 6 years to increase your pension amount. We opted not to do that, and are quite happy with what we will be able to claim from the UK. What pension you do receive from there, has to be declared to the tax authorities here though. Thanks CDU, Was thinking about whether or not to continue paying the STAMP, we had to top my OHs up after living in Germany for a few years. Another one to look into.. :wink: Link to comment Share on other sites More sharing options...
HappyHeart Posted October 5, 2014 Share Posted October 5, 2014 So what's the difference between super and a state pension (UK) I have no clue but feel I ought to be looking into it as I hit my 40s...I will have paid into SERPS from age 18, then I had just a few years of NHS pension, then went to work for non profit organisation in UK so money everywhere? Then here 2 different funds so far...it blows my mind tbh so I just resolve to think about it 'in the future' but I know thats probably foolish.. Link to comment Share on other sites More sharing options...
Celt Down Under Posted October 5, 2014 Share Posted October 5, 2014 So what's the difference between super and a state pension (UK) I have no clue but feel I ought to be looking into it as I hit my 40s...I will have paid into SERPS from age 18, then I had just a few years of NHS pension, then went to work for non profit organisation in UK so money everywhere? Then here 2 different funds so far...it blows my mind tbh so I just resolve to think about it 'in the future' but I know thats probably foolish.. State pension is based on what was deducted (Stamp) by the government to pay for your pension when you are old and grey. Superannuation is what money you put into a private pension fund separate from the state pension. As I stated, I can claim both pensions from the UK. Link to comment Share on other sites More sharing options...
HappyHeart Posted October 5, 2014 Share Posted October 5, 2014 State pension is based on what was deducted (Stamp) by the government to pay for your pension when you are old and grey. Superannuation is what money you put into a private pension fund separate from the state pension. As I stated, I can claim both pensions from the UK. But there is no 'state pension' in Aus? Just super? So here...despite not paying into a state pension you end up better off with super which every worker gets than if you just paid into serps in UK? Link to comment Share on other sites More sharing options...
Celt Down Under Posted October 5, 2014 Share Posted October 5, 2014 But there is no 'state pension' in Aus? Just super? There is a state pension here for those that have not had the opportunity to join a super fund. I do not know what the amount is, but no one starves on it. On having multiple funds in the UK, there is a search function on the UK government website for people to check if they have money in super with companies that they may have left years before. You just need the name of the company, plus the dates you worked there, and of course your own details, and it runs a check to see if it can find out for you. If you have several funds, you should try and roll them into a single fund rather than have them spread out. Link to comment Share on other sites More sharing options...
Celt Down Under Posted October 5, 2014 Share Posted October 5, 2014 But there is no 'state pension' in Aus? Just super? So here...despite not paying into a state pension you end up better off with super which every worker gets than if you just paid into serps in UK? You cannot double dip. You either get super, or a state pension here. If you are claiming from a superfund in the UK while on a state pension here, your state pension is reduced by X amount so that you get the same as any other person on the state pension. Also, if claiming the UK state pension out here, it is not indexed, and stays the same as the day that you first claimed it. The only time that it will increase is if you go back to the UK to live, or on holiday, and then it will increase to the current rate, but once your holiday is over, it reduces to the rate it was previously. Going off memory here. I have all the paperwork they sent me knocking around somewhere here. Link to comment Share on other sites More sharing options...
Gbye grey sky Posted October 5, 2014 Share Posted October 5, 2014 Thanks CDU, Was thinking about whether or not to continue paying the STAMP, we had to top my OHs up after living in Germany for a few years. Another one to look into.. :wink: Bear in mind that under current rules the UK State Pension payments are frozen if you are resident in Oz therefore if it is, say £150pw when you reach eligibility to draw it (for me that will be age 67) then it will stay £150pw even if I were to live for another 40 years. Factor that in too when deciding whether it is worth topping up your contributions to the max. Link to comment Share on other sites More sharing options...
Celt Down Under Posted October 5, 2014 Share Posted October 5, 2014 Bear in mind that under current rules the UK State Pension payments are frozen if you are resident in Oz therefore if it is, say £150pw when you reach eligibility to draw it (for me that will be age 67) then it will stay £150pw even if I were to live for another 40 years. Factor that in too when deciding whether it is worth topping up your contributions to the max. Exactly GGS, unless you move back there, or go on holiday there. As they explained to me, if I give them prior notice of a UK visit, the pension will increase for the amount of time that I am there, and then go back to the level it was prior to me going there. We did not think it worth paying the extra few grand given the small increase in the pension factored in by how long I would have to claim the pension for to get that money back. Link to comment Share on other sites More sharing options...
Nearlythere1 Posted October 5, 2014 Share Posted October 5, 2014 Exactly GGS, unless you move back there, or go on holiday there. As they explained to me, if I give them prior notice of a UK visit, the pension will increase for the amount of time that I am there, and then go back to the level it was prior to me going there. We did not think it worth paying the extra few grand given the small increase in the pension factored in by how long I would have to claim the pension for to get that money back. Hi CDU & GGS, I've been paying my tax in the UK for around 25 years now.. Does this mean that if I decide not to continue my stamp payments that I would be entitled to a %age proportion of my UK state pension relating to that 25 years of payment (less any tax the Aus Gov decides is their cut)? :chatterbox: Link to comment Share on other sites More sharing options...
Nearlythere1 Posted October 5, 2014 Share Posted October 5, 2014 There is a state pension here for those that have not had the opportunity to join a super fund. I do not know what the amount is, but no one starves on it. On having multiple funds in the UK, there is a search function on the UK government website for people to check if they have money in super with companies that they may have left years before. You just need the name of the company, plus the dates you worked there, and of course your own details, and it runs a check to see if it can find out for you. If you have several funds, you should try and roll them into a single fund rather than have them spread out. Just found and used that Gov website to trace another private pension, cheers for that info CDU.. :wink: Link to comment Share on other sites More sharing options...
Celt Down Under Posted October 5, 2014 Share Posted October 5, 2014 Hi CDU & GGS, I've been paying my tax in the UK for around 25 years now.. Does this mean that if I decide not to continue my stamp payments that I would be entitled to a %age proportion of my UK state pension relating to that 25 years of payment (less any tax the Aus Gov decides is their cut)? :chatterbox: Yes, when you reach retirement age. As I stated, it will be a % of the total based on the years that you contributed against the years that you could have contributed. Link to comment Share on other sites More sharing options...
Gbye grey sky Posted October 5, 2014 Share Posted October 5, 2014 Hi CDU & GGS, I've been paying my tax in the UK for around 25 years now.. Does this mean that if I decide not to continue my stamp payments that I would be entitled to a %age proportion of my UK state pension relating to that 25 years of payment (less any tax the Aus Gov decides is their cut)? :chatterbox: Yes. But it is your NI contributions rather than tax. I have been paying contributions for 37 years so I have no decision to make on the matter though. You can top up your contributions at a later date if you wish so it is not something you need worry about at this stage anyway. Link to comment Share on other sites More sharing options...
Celt Down Under Posted October 5, 2014 Share Posted October 5, 2014 Just found and used that Gov website to trace another private pension, cheers for that info CDU.. :wink: Ahhmmmm, can you send my fee to.....ahmmmmm................nah, just have a drink on what I would have charged. LOL Link to comment Share on other sites More sharing options...
Nearlythere1 Posted October 5, 2014 Share Posted October 5, 2014 CDU, Class 2 voluntary contributions to National insurance, 2014-15 = £2.75 per week or £143 pa. Based on this years figures and the fact that I already have 26 years in, with 30 years being the target amount of contributory years. £572 over the next 4 years would give me 100% of UK state pension at 67. Currently at nearly £100 a week.. Seems like I may continue mine.. :wink: Link to comment Share on other sites More sharing options...
Celt Down Under Posted October 5, 2014 Share Posted October 5, 2014 CDU, Class 2 voluntary contributions to National insurance, 2014-15 = £2.75 per week or £143 pa. Based on this years figures and the fact that I already have 26 years in, with 30 years being the target amount of contributory years. £572 over the next 4 years would give me 100% of UK state pension at 67. Currently at nearly £100 a week.. Seems like I may continue mine.. :wink: Well worth it then with that small amount. In my case, I did not continue when we left 33 years ago, and I am only allowed to backpay 6 years, which would have only increased my pension by a small amount over what I will be able to claim from next February. If the target is 30 years, I will be getting 16 30ths of the full amount. I am happy with that. :jiggy: Link to comment Share on other sites More sharing options...
Marisawright Posted October 6, 2014 Share Posted October 6, 2014 So, are there any reliable, Government sponsored websites that advise on Super, and which Supers to go for etc? Do I have to go with a specific Super fund when I'm employed or do I just tell my employer which one it is? :confused: Your employer will have a default fund and won't go out of their way to offer you an alternative, but it's your right to choose, and it's just a case of getting a form from the fund of your choice and handing it in to Payroll before your first pay day. Link to comment Share on other sites More sharing options...
Marisawright Posted October 6, 2014 Share Posted October 6, 2014 So what's the difference between super and a state pension (UK) I have no clue but feel I ought to be looking into it as I hit my 40s...I will have paid into SERPS from age 18, then I had just a few years of NHS pension, then went to work for non profit organisation in UK so money everywhere? Then here 2 different funds so far...it blows my mind tbh so I just resolve to think about it 'in the future' but I know thats probably foolish.. There's no excuse for having two different super funds! It's costing you in fees. Your employer can't force you to use their default fund, and switching is easy. All you have to do is choose a new super fund, then ask it for help to move your money from the other funds. The hardest part of that is choosing a fund. You can go to a financial adviser but bear in mind, many of them get paid commissions from certain funds so you're not getting independent advice. If you don't want to pay for advice or think too hard about it, go for one of the big industry funds like Australian Super. Difference between super and a state pension: The state pension is provided by the government. The UK one is calculated based on what NI contributions you made: the Australian one is a welfare payment, and you need 10 years' residency to claim it. Your super fund is YOUR money, which you can use to pay yourself a pension in retirement - but there's no magic about it, you can only take out what you put in, just like a savings account. So if you don't pay enough in, your pension won't last for many years, and once it runs out, you'll have to rely on one or both of the state pensions. State pensions are low, and you wouldn't want to be heading into retirement relying on a state pension for your entire income - that's why super is so important. Link to comment Share on other sites More sharing options...
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