Loulou Posted October 12, 2015 Share Posted October 12, 2015 Hi all, just after a little advice regarding UK pensions, Iam 35 and have worked since I was 17 (three years out for nurse training) so 18 years paying full NI! I also have a nursing pension where I have got 4years input, my husband has worked since 16 paying full NI, total of 24 years input just wondering a) are we entitled to UK state pension at retirement age in oz b) what to I do with my nurse pension thanks in advance but been trying to figure out pensions for years and still have no idea... Loulou Quote Link to comment Share on other sites More sharing options...
Johndoe Posted October 12, 2015 Share Posted October 12, 2015 Hi all, just after a little advice regarding UK pensions, Iam 35 and have worked since I was 17 (three years out for nurse training) so 18 years paying full NI! I also have a nursing pension where I have got 4years input, my husband has worked since 16 paying full NI, total of 24 years input just wondering a) are we entitled to UK state pension at retirement age in oz b) what to I do with my nurse pension thanks in advance but been trying to figure out pensions for years and still have no idea... Loulou You need 30 yrs contributions for a full UK pension so you would get 18/30ths of full and your husband 24/30ths. If you started paying before the the 30yr rule came in, (it used to be 20) then I think you would get 18/20ths and your husband a full. I only had 20 yrs and started the full UK pension 2 yrs ago so you may be on the right side. If you are, then it may be worth you paying another 2 yrs contributions up front to give you a full. I think with only 4 yrs NHS contributions the transfer fee may make it prohibitive to transfer to your scheme in Oz, that is if it is recognisable (QROPS). My ex had 14yrs in the NHS and even with that amount of service the transfer fee was prohibitive so she left it in the UK to draw at access age No doubt someone from the finance sector will correct me if I am wrong, as pension/superann have changed both here and in the UK since I started drawing Quote Link to comment Share on other sites More sharing options...
Loulou Posted October 12, 2015 Author Share Posted October 12, 2015 Thank you Johndoe, that's a great help will phone and find out regarding the state pension, thought as much regarding my NHS as only got a few years, Iam assuming then that this will freeze and I will just claim it at retirement age? In regards to oz pension then does this work the same as UK which means I would be claiming from 2 different countries? Loulou Quote Link to comment Share on other sites More sharing options...
Marisawright Posted October 12, 2015 Share Posted October 12, 2015 (edited) Thank you Johndoe, that's a great help will phone and find out regarding the state pension, thought as much regarding my NHS as only got a few years, Iam assuming then that this will freeze and I will just claim it at retirement age? In regards to oz pension then does this work the same as UK which means I would be claiming from 2 different countries? Loulou Your UK pension won't freeze, it will continue to grow in some way depending on what kind of pension it is. Yes you would be claiming from two different countries - in fact Australia will make you claim your UK pension first, before they decide how much Aussie pension you get (the Australian pension is means-tested, which means they take account of all your other income to decide how much you get). Edited October 12, 2015 by Marisawright Quote Link to comment Share on other sites More sharing options...
Loulou Posted October 12, 2015 Author Share Posted October 12, 2015 Thanks Marisawright, day off work and still no golden email so trying to use my time trying to consider and plan for when we finally go 6months to go, never understood the pension scheme here so trying together my head around it all! Loulou Quote Link to comment Share on other sites More sharing options...
Fisher1 Posted October 12, 2015 Share Posted October 12, 2015 Hi Loulou I know times have changed a lot since we looked at this problem thirty years ago but my husband was then in almost exactly the same position as you are now - he had paid full contributions from the age of 15 and he was 35 when we moved to live in Luxembourg. He didn't pay the first year (we had only planned to stay a year originally) but when it seemed like we may be there a little longer he decided it was worth paying a monthly second class contribution. He maintained his payments throughout our eventual 24 year absence from the UK and now gets a full UK pension. He also gets a pension from his contirbutions to non- UK state schemes. We are very very glad he chose to pay the extra relatively small amount to the UK, as it turned out to be a very good investment. What you must bear in mind though, is that as things stand at the moment, if you retire in Australia, although you will be entitled to a full UK pension, it will be immediately 'frozen' at the initial amount and you will never get any cost of living rises - quickly dimishing its true value. Over the years, we found the UK pensions dept. very helpful - they even wrote to advise my husband that the number of years contributions needed was set to reduce from the 44 years needed when we left the UK to 30 - they didn't exactly advise him to stop paying but it was there between the lines. He had also been contributing to a works pension for seven years. This was left where it was and he was able to access a small monthly payment at age 55. Of course all pensions are different, and the golden rule we found is ASK ASK ASK. and if you aren't clear? ASK ASK ASK. Good luck with it all. I wish we could go back and do it all again - we had a ball. :-) PS I'm not sure where the previous poster got the idea that it used to be 20 years for a state pension - it didn't! it was 44 years for men and (I think) 40 years for women. Quote Link to comment Share on other sites More sharing options...
Loulou Posted October 12, 2015 Author Share Posted October 12, 2015 Thanks Fisher1, appreciate everyone's advice a little clearer now. Loulou Quote Link to comment Share on other sites More sharing options...
ramot Posted October 12, 2015 Share Posted October 12, 2015 (edited) We kept up our NI payments while working overseas, my husband in full and I made up as much as allowed, We worked out that as long as I lived past 62 I would then start to be in credit, luckily I did!! Sorry in case that isn't clear, the extra I would receive because of the extra I had paid would balance out after 2 years, so I would then be in profit. I started claiming state pension 11 years ago and my husband 7 years ago, and both have been frozen since eligible. We claim the difference when we visit the UK. Worked out this time we would be better off by 260pds every 4 weeks had we stayed in the UK. That is serious money to lose out on. It was certainly worth our while to keep up payments as only a few years were involved, but I think the way you will have to be older and older in the future, before eligible for the UK state pension, then perhaps depending on your age weigh up wether it really would be worth it. Edited October 12, 2015 by ramot Quote Link to comment Share on other sites More sharing options...
Johndoe Posted October 12, 2015 Share Posted October 12, 2015 f you retire in Australia, although you will be entitled to a full UK pension, it will be immediately 'frozen' at the initial amount and you will never get any cost of living rises - quickly dimishing its true value. This though is on no consequence if you are below the means test level and are entitled to a top up from the Australian aged pension. IOW, What you don't get from the UK, Oz will give you anyway. In effect, your real income (from the UK is falling, whilst the entitlement to some of the Australian pension is rising. In reality, none of this will likely be of consequence to you because you will pay compulsory superann here, as will your employer on your behalf, the benefits of which, will inevitably precludes you from the Australian pension if you're in decent employment for long enough. The UK pension will be a bonus. Quote Link to comment Share on other sites More sharing options...
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