jackson982 Posted July 3, 2015 Share Posted July 3, 2015 I'm sure most people know that if you return to the UK and claim a State Pension, any years spent in Australia prior to 5/4/2001 can count towards your pension amount. What we have discovered to our cost is that these years are only paid if you are resident in the UK. We didn't know this and only found out after we had moved to France and were told that the 13 years we spent in Australia would only be paid if we returned to the UK. In our case the full State Pension requires 30 eligible years so the 13 'Australian' years account for almost half our UK Pension. This seems unreasonable to us as there is supposed to be free movement within the EEC and we were never informed that moving within the EEC could affect our pension. Are any other members caught in this same situation? Quote Link to comment Share on other sites More sharing options...
Marisawright Posted July 3, 2015 Share Posted July 3, 2015 I'm sure most people know that if you return to the UK and claim a State Pension, any years spent in Australia prior to 5/4/2001 can count towards your pension amount. What we have discovered to our cost is that these years are only paid if you are resident in the UK. We didn't know this No,because I knew that was the case before I moved. The UK is not the only country to have rules like this. For instance, if you're resident in Australia you need only 10 years residence to get the full pension, whereas if you're non-resident you need 30 years' residence. Quote Link to comment Share on other sites More sharing options...
BacktoDemocracy Posted July 3, 2015 Share Posted July 3, 2015 I'm sure most people know that if you return to the UK and claim a State Pension, any years spent in Australia prior to 5/4/2001 can count towards your pension amount. What we have discovered to our cost is that these years are only paid if you are resident in the UK. We didn't know this and only found out after we had moved to France and were told that the 13 years we spent in Australia would only be paid if we returned to the UK. In our case the full State Pension requires 30 eligible years so the 13 'Australian' years account for almost half our UK Pension. This seems unreasonable to us as there is supposed to be free movement within the EEC and we were never informed that moving within the EEC could affect our pension. Are any other members caught in this same situation? Have no knowledge of this , it's the same thing as not uprating pensions in certain countries, completely arbitrary, but wonder whether it is worth your while to explore doing a house swap with someone in the uk, get a uk address and claim the years and get your pension updated and then go back and live in france after the dust has settled or do you have to be permanently resident in the uk, you could claim that you intended to stay but just couldn't. Quote Link to comment Share on other sites More sharing options...
amibovered Posted July 3, 2015 Share Posted July 3, 2015 That is interesting, thanks for pointing this out. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted July 4, 2015 Share Posted July 4, 2015 Have no knowledge of this , it's the same thing as not uprating pensions in certain countries, completely arbitrary, but wonder whether it is worth your while to explore doing a house swap with someone in the uk, get a uk address and claim the years and get your pension updated and then go back and live in france after the dust has settled or do you have to be permanently resident in the uk, you could claim that you intended to stay but just couldn't. Nice idea but it wouldn't help. As soon as they left the country the non-resident rules would apply and the pension would be reduced. The only solution is to pay extra NI contributions. Quote Link to comment Share on other sites More sharing options...
ramot Posted July 4, 2015 Share Posted July 4, 2015 Not sure that you can pay extra NI contributions once you are in receipt of your state pension? But definitely worth thinking about in advance. I paid extra contributions before I was 60, having worked out that as long as I lived till 62 I would then be ahead with the extra each week. A bit off the posters situation, but just in case UK pensioners in OZ + several other mainly ex commonwealth countries don't know. Before you go to UK for a holiday, contact the pensions dept. tell them your entry and departure dates, and your pension is increased while you are there, to what it would be had you never left. As soon as you leave, it reverts to the lower amount. We always claim as every little helps!! and we are entitled to it. Quote Link to comment Share on other sites More sharing options...
ausscot Posted July 5, 2015 Share Posted July 5, 2015 Can you be more specific about the tax penalties as my wife and I are moving back to the UK after 20 years and will be in retirement in the UK? Quote Link to comment Share on other sites More sharing options...
AJ Posted July 5, 2015 Share Posted July 5, 2015 I'm sure most people know that if you return to the UK and claim a State Pension, any years spent in Australia prior to 5/4/2001 can count towards your pension amount. Surely this part gives you a clue! You are saying if you return to the UK, not if you go and live somewhere else. I dont think its unreasonable, if you havent made enough contributions its common knowledge you dont get the full pension. You have made an assumption that the rules would be the same if you moved somewhere else. Quote Link to comment Share on other sites More sharing options...
dxboz Posted July 5, 2015 Share Posted July 5, 2015 Jackson where did you get your information from re claiming the years up to 2001? Quote Link to comment Share on other sites More sharing options...
Marisawright Posted July 5, 2015 Share Posted July 5, 2015 (edited) Can you be more specific about the tax penalties as my wife and I are moving back to the UK after 20 years and will be in retirement in the UK? @ausscot, here's the position: If you move to the UK before you reach pensionable age, you won't be able to claim the Australian state pension, ever. If you're already receiving the Australian pension then you'll continue to receive it, but it will be reduced if you don't meet the higher residency requirements - you only need 10 years' residency to get the full pension while you're living in Oz, but when you move you'll need 35 years' residency. As for super - if you're still in Australia, if you take a lump sum on retirement then you'll pay little or no tax on the money. But if you take a lump sum while you're living in the UK, the Australian govt will tax your lump sum, so you'll lose at least 15%. If you decide to take an income stream (pension) instead, that gets favourable tax treatment in Australia too. But the UK government doesn't make any special concessions for pensions, so you'll have to pay UK tax on it. Edited July 5, 2015 by Marisawright Quote Link to comment Share on other sites More sharing options...
Marisawright Posted July 5, 2015 Share Posted July 5, 2015 Jackson where did you get your information from re claiming the years up to 2001? The best way, if you have a NI number, is to write to the UK Pensions office and ask for a pension forecast, they'll tell you what you're entitled to and explain how to claim the pre-2001 work history. https://www.gov.uk/state-pension-statement Quote Link to comment Share on other sites More sharing options...
ramot Posted July 5, 2015 Share Posted July 5, 2015 (edited) In UK, Your tax free threshold is 10.600 pds at present, unless your income is over 100.00 pds. Edited July 5, 2015 by ramot Quote Link to comment Share on other sites More sharing options...
dxboz Posted July 5, 2015 Share Posted July 5, 2015 The best way, if you have a NI number, is to write to the UK Pensions office and ask for a pension forecast, they'll tell you what you're entitled to and explain how to claim the pre-2001 work history.https://www.gov.uk/state-pension-statement Thanks Marisa knew about the pension forecast but didn't realise they would tell you about pre 2001. Quote Link to comment Share on other sites More sharing options...
ramot Posted July 5, 2015 Share Posted July 5, 2015 (edited) In UK, Your tax free threshold is 10.600 pds at present, per person,unless your income is over One hundred thousand pounds per annum. sorry left a nought off. Edited July 5, 2015 by ramot Quote Link to comment Share on other sites More sharing options...
ausscot Posted July 6, 2015 Share Posted July 6, 2015 @ausscot, here's the position: If you move to the UK before you reach pensionable age, you won't be able to claim the Australian state pension, ever. If you're already receiving the Australian pension then you'll continue to receive it, but it will be reduced if you don't meet the higher residency requirements - you only need 10 years' residency to get the full pension while you're living in Oz, but when you move you'll need 35 years' residency. As for super - if you're still in Australia, if you take a lump sum on retirement then you'll pay little or no tax on the money. But if you take a lump sum while you're living in the UK, the Australian govt will tax your lump sum, so you'll lose at least 15%. If you decide to take an income stream (pension) instead, that gets favourable tax treatment in Australia too. But the UK government doesn't make any special concessions for pensions, so you'll have to pay UK tax on it. Thanks for the advice. From what you have said there isn't any hidden penalties that we weren't aware of. We won't get the Aus pension anyway as its means tested. Super I'll take a lump sum while still in Oz and transfer as cash to the UK. We will be eligible for UK pension as have paid NI contributions for 30 years. Appreciate that this plus any other income received in the UK will be taxed. Are you aware of anything else re tax and pensions? Quote Link to comment Share on other sites More sharing options...
Marisawright Posted July 6, 2015 Share Posted July 6, 2015 Thanks for the advice. From what you have said there isn't any hidden penalties that we weren't aware of. We won't get the Aus pension anyway as its means tested. Super I'll take a lump sum while still in Oz and transfer as cash to the UK. We will be eligible for UK pension as have paid NI contributions for 30 years. Appreciate that this plus any other income received in the UK will be taxed. Are you aware of anything else re tax and pensions? Sounds like you're all set. Wish we were in such a good position! Quote Link to comment Share on other sites More sharing options...
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