melon Posted October 16, 2014 Share Posted October 16, 2014 I have a question that perhaps should be posted elsewhere (money and finance?) but I'll try here... I moved back to the UK in March and I've not regretted it so far, had a great time I do have a reasonable amount of Superannuation stored in an Aussie employer scheme (public sector fund) I have been told several times that unless special circumstances apply I cannot access these funds until I am 65. It is possible the rules will change. THese apply to me as I hold PR at the moment, so I am treated as a resident even though I now live overseas My question is, what happens if I lose my PR status completely? This could happen if I fail to renew my RRV (I will need one next time I travel back) for example and then travel in a few years on a tourist visa. I'll then have no status in Australia and presumably different rules can apply? The Super fund are not that helpful, they just read the rules out to me Cheers, Melon Quote Link to comment Share on other sites More sharing options...
Guest Posted October 16, 2014 Share Posted October 16, 2014 I believe if you wait until your PR expires. That is you are out of Australia for five years or your RRV expires and you are not eligible for another due to being out of Australia you can apply to get access to it. However be aware the tax you will pay on it will be very high. Quote Link to comment Share on other sites More sharing options...
melon Posted October 16, 2014 Author Share Posted October 16, 2014 Thanks Chicken66, to be honest I'd not considered the tax implications. Pension/Super income is taxable in the UK anyway, so at least any of my income from Oz presumably would not then be taxed again once the ATO has taken it's cut.... I intend to retain RRV/PR status as long as possible but that may run out at some stage once I fail to meet the five year rule for renewal..... Quote Link to comment Share on other sites More sharing options...
Marisawright Posted October 16, 2014 Share Posted October 16, 2014 I do have a reasonable amount of Superannuation stored in an Aussie employer scheme (public sector fund) I have been told several times that unless special circumstances apply I cannot access these funds until I am 65. My question is, what happens if I lose my PR status completely? I'm not clear, do you WANT to access the funds or are you happy to leave them there? If it's a decent amount, it might not be a bad idea to leave the funds there and let them accumulate, it's always good to have some money set aside for your retirement. You can do that even if you're a non-resident. The good thing is that it's a tax-free investment - something that's not easy to find in the UK, I believe. Quote Link to comment Share on other sites More sharing options...
Peach Posted October 16, 2014 Share Posted October 16, 2014 Only temporary residents have the option to move funds out of their super. If you've had PR or citizenship, you cannot access it until retirement. Quote Link to comment Share on other sites More sharing options...
melon Posted October 17, 2014 Author Share Posted October 17, 2014 I'm not clear, do you WANT to access the funds or are you happy to leave them there? If it's a decent amount, it might not be a bad idea to leave the funds there and let them accumulate, it's always good to have some money set aside for your retirement. You can do that even if you're a non-resident. The good thing is that it's a tax-free investment - something that's not easy to find in the UK, I believe. Good point, I agree with you that super is a good idea however I was investigating the possibility of moving it to a private pension in the UK rather than spending the cash now My main concerns are accessing the money in 20 years time, and potential changes to Aussie government policy, both might make it tricky to get hold of it when I retire. Just looking at the worst case scenario.......... Quote Link to comment Share on other sites More sharing options...
melon Posted October 17, 2014 Author Share Posted October 17, 2014 I'm not clear, do you WANT to access the funds or are you happy to leave them there? If it's a decent amount, it might not be a bad idea to leave the funds there and let them accumulate, it's always good to have some money set aside for your retirement. You can do that even if you're a non-resident. The good thing is that it's a tax-free investment - something that's not easy to find in the UK, I believe. Thanks Peach, the situation I was investigating is what if you lose PR and become non-resident, do the rules still apply and it appears they do Quote Link to comment Share on other sites More sharing options...
Guest Posted October 17, 2014 Share Posted October 17, 2014 Thanks Peach, the situation I was investigating is what if you lose PR and become non-resident, do the rules still apply and it appears they do Melon i have heard of a few who have lost their PR status so have no option to return to Australia and have been able to remove their Super so it can be done. Quote Link to comment Share on other sites More sharing options...
Guest Posted October 17, 2014 Share Posted October 17, 2014 Only temporary residents have the option to move funds out of their super. If you've had PR or citizenship, you cannot access it until retirement. If you lose your PR status you have no possibility to return to Australia you can get your super out. I know of a few who have done it. However the tax paid on it was very high. Quote Link to comment Share on other sites More sharing options...
Peach Posted October 17, 2014 Share Posted October 17, 2014 If you lose your PR status you have no possibility to return to Australia you can get your super out. I know of a few who have done it. However the tax paid on it was very high. Just not true.... Sorry.. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted October 17, 2014 Share Posted October 17, 2014 Good point, I agree with you that super is a good idea however I was investigating the possibility of moving it to a private pension in the UK rather than spending the cash now My main concerns are accessing the money in 20 years time, and potential changes to Aussie government policy, both might make it tricky to get hold of it when I retire. Just looking at the worst case scenario.......... It's your money, not a state pension, so the government can't stop you getting it even if you're overseas. It can raise the age you can claim it, and it can change the way it's taxed. Quote Link to comment Share on other sites More sharing options...
Rom Pom Posted October 19, 2014 Share Posted October 19, 2014 Hi All, My super fund told me you could withdraw the assets you've gained as a lump sum for reinvesting as an annuity or just spending. you can do this at age 60 IF you retire from work. until recently it was 55. They say you can retire to anywhere in the world and draw the pension. the current government is considering letting people draw down on their super at any time- to pay for example for a mortgage etc without an age limit. So maybe leave it where it is until you are eligible to withdraw it and hope the rules change positively. Or if you have a comparable fund in the UK you can often transfer the years you have now directly across- many public sector funds have these arrangements. For private funds it may be better, if you really want to take it out now, to reinvest the total. I think this is all correct. Quote Link to comment Share on other sites More sharing options...
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