Just back from Australia

[CaptainC]

So for those that hate maths...and apologies if any find this condescending but it is meant to help someone....if you want to compare the cost of living for a particular thing do the following rather than using the exchange rate. It is not perfect but it is almost certainly more accurate than using the exchange rate:

 

Question: Is this product that costs $25 in Australia dearer or cheaper than the UK ?

 

$25 divided by 2.5 = 10 quid.

 

If same product in the UK is dearer than 10 quid Australia is cheaper.

If same product in the UK is cheaper than 10 quid Australia is dearer.

 

 

Question: What sort of buying power will this $100,000 salary they have offered me provide ?

 

$100,000 divided by 2.5 = 40,000 quid

 

NOT $100,000 divided by <random current exchange rate> = <I'm in the money>

 

 

Caveat: 2.5 is just an estimate worked out in previous times and may not be totally up-to-date.

 

No, it's not condescending at all! It's all good info and that's why we are on this forum (at least why I am here)

Great part about the £10 cheaper/dearer, I'll use that in the shops until I get used to it.

It's quite ironic though because I used to tell my wife off for always converting pounds to NZ dollars when she first arrived in the UK, now I've been doing the same, I won't tell her if you won't!

[BacktoDemocracy]

Not disagreeing with you at all but there are some (like us) who will be effectively retiring in Oz and taking our savings over and will also have pension income (Civil Service and state pensions) in the future which will be in sterling. For people like us (who will be permanently resident and not visitors) the comparisons are valid.

 

I accept we are in the minority but there is a tendency to assume that everyone from the UK will be earning a living in Australia and that is not always the case.

 

I hope ypu have factored in that your state pension will not be uprated once you live in Oz and that your other pension income will be subject to the vagaries of the exchange rate, I would suggest an offshore bank account for payment of your pension into, I found it made it easier to then hold it until the exchange rate was favourable.

just a thought.

[Gbye grey sky]

I hope ypu have factored in that your state pension will not be uprated once you live in Oz and that your other pension income will be subject to the vagaries of the exchange rate, I would suggest an offshore bank account for payment of your pension into, I found it made it easier to then hold it until the exchange rate was favourable.

just a thought.

 

Yes I was aware, but thanks for that. That was also my intention with the government pension. We also both have private pensions which we plan to transfer to Aussie Supers so we are not wholly at the mercy of exchange rates.

[Atlas]

Great post, a lot to think about and it was an interesting read. Thanks for sharing and all the best with your move

[CaptainC]

Currently sat at Manchester Airport waiting to go back to Australia again. Will be nice to just enjoy the recce rather than have the pressure of the skills assessment exam.

Got a few people to see and a few things to do, so I'll do an update to my original post on my return.

[Chortlepuss]

We earn much more here which counterbalances the increased cost of living. No better off than in UK. In Brisbane you get a bigger house, more land but poorer build quality than UK equivalent. Swings and roundabouts really. We couldn't afford to retire here - once you are on a low pension, relative increase of cost of living hurts a lot more. Plus we have interests like travelling that are very expensive in Oz due to distance. If you have the $$$ though, I'm sure Australia is a great place to retire, particularly if you can base yourself away from major cities and associated cost. In fact if my lotto comes up I think I'll get a retirement bolt hole in northern NSW for the perfect climate....

[ramot]

Yes I was aware, but thanks for that. That was also my intention with the government pension. We also both have private pensions which we plan to transfer to Aussie Supers so we are not wholly at the mercy of exchange rates.

 

Just picked up on this thread, to reassure you these "poor souls" have been here for 12 years totally self funded with all our income from UK.

We, like many others that we know, are doing fine and the changes in the exchange rate haven't bothered us, but our pensions are index linked, so mostly it's evened out.

we leave our state pension in a UK bank and use it on our annual trips back as a bonus, and we get the increased up to date rate for the time we are back there, make sure we always get it as it is ours.

[Gbye grey sky]

Just picked up on this thread, to reassure you these "poor souls" have been here for 12 years totally self funded with all our income from UK.

We, like many others that we know, are doing fine and the changes in the exchange rate haven't bothered us, but our pensions are index linked, so mostly it's evened out.

we leave our state pension in a UK bank and use it on our annual trips back as a bonus, and we get the increased up to date rate for the time we are back there, make sure we always get it as it is ours.

 

Good point, though I understand the increased rate only applies for the duration of your visit and then reverts so of limited value. We are unlikely to make many (if any) visits to the UK once we are over 67 I suspect. No ties that strong that would make the expense and the long flights worthwhile.

[ramot]

Good point, though I understand the increased rate only applies for the duration of your visit and then reverts so of limited value. We are unlikely to make many (if any) visits to the UK once we are over 67 I suspect. No ties that strong that would make the expense and the long flights worthwhile.

 

To be honest we only go back because our only 2 grandchildren are there, sadly we are both well over 67!!!!!!!!

 

yes state pension only increased while back, but we make sure we get it!!!

All our other pensions are index linked though.

 

good luck with your move.

[Bristle]

To be honest we only go back because our only 2 grandchildren are there, sadly both well over 67!

 

yes state pension only increased while back, but we make sure we get it!!!

All our other pensions are index linked though.

 

good luck with your move.

How hold are you then if your grandchildren are both over 67?

[ramot]

:Randy-git:

[bristolman]

?..

[JockinTas]

:Randy-git:

 

 

:shocked:

 

:laugh:

[grahamffc]

Apologies to be blunt but the OP's is largely pointless (the financial bits anyway), just like wanted down under. It's irrelevant if groceries cost twice as much if you earn twice as much as you did in the UK, some professions earn lots more in Oz some lots less, and every number would change with exchange rates.

 

Work out your expected disposable income and compare that to your disposable income percentage in the UK. The only relevance of using numbers is if you are able to take capital with you and what this could buy in the current exchange rate and property markets.

 

Personally I had higher disposable income in Melbourne compared to London but if I was to factor in some holidays back to the UK (which I would have wanted had I stayed) it would be about even.

[bristolman]

Apologies to be blunt but the OP's is largely pointless (the financial bits anyway), just like wanted down under. It's irrelevant if groceries cost twice as much if you earn twice as much as you did in the UK, some professions earn lots more in Oz some lots less, and every number would change with exchange rates.

 

Work out your expected disposable income and compare that to your disposable income percentage in the UK. The only relevance of using numbers is if you are able to take capital with you and what this could buy in the current exchange rate and property markets.

 

Personally I had higher disposable income in Melbourne compared to London but if I was to factor in some holidays back to the UK (which I would have wanted had I stayed) it would be about even.

 

I don't really see it as pointless, obviously everybody's circumstances are different but it is handy to have an idea of what you might expect to find when you get there.

[Johndoe]

First quarter totally classed as a sole pensioner. I could never manage on just the UK pension but the top up from centrelink to bring me in line with the Oz pension, plus cheaper travel and discounted council rates, leccy, rego etc is what is keeping me here. I have no other pensions as I cashed in my endowments to fund us getting here. just as well, otherwise they would have decreased/negated the Oz top up

[grahamffc]

If you're going to be spending £££'s it is helpful

[CaptainC]

Apologies to be blunt but the OP's is largely pointless (the financial bits anyway), just like wanted down under. It's irrelevant if groceries cost twice as much if you earn twice as much as you did in the UK, some professions earn lots more in Oz some lots less, and every number would change with exchange rates.

 

Work out your expected disposable income and compare that to your disposable income percentage in the UK. The only relevance of using numbers is if you are able to take capital with you and what this could buy in the current exchange rate and property markets.

 

Personally I had higher disposable income in Melbourne compared to London but if I was to factor in some holidays back to the UK (which I would have wanted had I stayed) it would be about even.

 

No apologies necessary. You are entitled to your opinion just as much as the next man/woman.

 

I agree it was weighted towards those earning the pound. Indeed, when I lived in Australia last time I was working for a UK company and earning the pound, so I never really got into the 'swing' of the AUD, and was always converting the currencies when I was out shopping etc, a habit I will try to break this time around.