retiring back to the UK

[jimmyinoz]

hi we're pretty much agreed that wed like to retire back home in Scotland ..the question i have ... has anyone taken there super with them as a lump? as we need that to buy a house back home 

[Marisawright]

There are rules about withdrawing a lump sum from your super.  Going overseas makes no difference to whether you're allowed to do it or not.

I suggest ringing your super fund and asking them if you can withdraw a lump sum.  You don't need to tell them you're going overseas, that makes no difference whatsoever.  If you are allowed to withdraw a lump sum, you'll just need to fill in a form, they will pay the money into your Australian bank account and you can do whatever you like with it after that.

Once you've got the money, use a company like Moneycorp to transfer the money to the UK.  Don't use your bank, they will give you a terrible rate!   Moneycorp will hold the money for you until you can get a UK bank account opened.  

By the way, don't close your Australian bank account when you leave Australia as it can be handy for a while after you leave, e.g. if you forget the odd bill.

 

Edited February 4, 2018 by Marisawright

[Phil & Vikki]

Whilst reading your post the question has to arise if you are using the lump sum to fund a new house, how are you going to live? Have you been topping up your NI contributions so you can have a UK pension and how would you stand with the NHS?

[Marisawright]

19 minutes ago, Phil & Vikki said:

Whilst reading your post the question has to arise if you are using the lump sum to fund a new house, how are you going to live? Have you been topping up your NI contributions so you can have a UK pension and how would you stand with the NHS?

That question was on my mind, too.  To the OP - have you checked how the move will affect your Australian aged pension, and what kind of pension/benefits you'll get from the UK Govt?

[jimmyinoz]

On 2/5/2018 at 09:39, Marisawright said:

There are rules about withdrawing a lump sum from your super.  Going overseas makes no difference to whether you're allowed to do it or not.

I suggest ringing your super fund and asking them if you can withdraw a lump sum.  You don't need to tell them you're going overseas, that makes no difference whatsoever.  If you are allowed to withdraw a lump sum, you'll just need to fill in a form, they will pay the money into your Australian bank account and you can do whatever you like with it after that.

Once you've got the money, use a company like Moneycorp to transfer the money to the UK.  Don't use your bank, they will give you a terrible rate!   Moneycorp will hold the money for you until you can get a UK bank account opened.  

By the way, don't close your Australian bank account when you leave Australia as it can be handy for a while after you leave, e.g. if you forget the odd bill.

 

Thanks for that advice i was going to keep an account here for awhile anyway ive done that in every country ive worked in ...much appriciated

 

 

[jimmyinoz]

3 hours ago, Phil & Vikki said:

Whilst reading your post the question has to arise if you are using the lump sum to fund a new house, how are you going to live? Have you been topping up your NI contributions so you can have a UK pension and how would you stand with the NHS?

From my research im entitled to 26/30ths of my UK pension and allowed to work 20hours a week  ,that and the fact my missus is a good deal younger than me ..and intends to go back to work when we get home [shes an Aussie but with euro roots } T he only time ive "topped up " my NI was when i had a 716 and was self employed ,didnt need to otherwise , And every UK resident  citizen is entitled to use the NHS regardless [were not Americans lol ]the system was set up by Nye Bevan for that specific purpose to enable universal healthcare regardless of financial means .

I came to Australia for a number of reasons   mainly to give my boy a decent place to grow up ..i arrived with 1800quid no job and no home ,,..but through hard graft and a bit of ingenuity i got sorted  ,I guess i had a bit of a dream about buying a bit of land out in the bush and being self sufficient but thats going to be impossible now ..and in the future possibly illegal..[one state in the US has just made it illegal to come off the grid ].anyway being Scots i have reasearched my home county and house prices are stil reasonable ..and likely to dip in the next five years with brexit etc [my cousin owns a local property company ] so we should just be ready to buy just as the market dips  

[Marisawright]

Are you over 65??   Are you aware that if you leave before you reach pensionable age, you won't be able to get the Australian pension at all?  Same goes for your wife.   

[jimmyinoz]

36 minutes ago, Marisawright said:

Are you over 65??   Are you aware that if you leave before you reach pensionable age, you won't be able to get the Australian pension at all?  Same goes for your wife.   

in my experience most expats who go home find it very difficult if not impossible to get the aussie pension whether they reach 65 or not   there appears to be this belief  here that its somehow a hand out and "only for you poor people "  lmfao ..its a reward for the tax you paid into the system and the work youve done to contribute to the country ..thats what a pension is!  most here dont seem to get that  still not my problem .... they can keep it !!! if their that skint .

You have to apply for it whilst in Australia AND have spent at least 2 yrs here previously  so i could wait unitl im 65 claim it and then go but the Uk will just subtract it from my UK pension as foreign earnings so it may well be counterproductive 

We ll manage ..my wife will get the UK pension as long as she spends at least 10yrs working [which she will just slid in under the wire] and so will i  and like i said ill be  working  as soon as hit blighty ..im not moving for another 5 yrs at least as mentioned [ill be 63 by then ]my missus will be 55..i have a lot of contacts back home 

Edited February 6, 2018 by jimmyinoz

[Quoll]

32 minutes ago, jimmyinoz said:

in my experience most expats who go home find it very difficult if not impossible to get the aussie pension whether they reach 65 or not   there appears to be this belief  here that its somehow a hand out and "only for you poor people "  lmfao ..its a reward for the tax you paid into the system and the work youve done to contribute to the country ..thats what a pension is!  most here dont seem to get that  still not my problem .... they can keep it !!! if their that skint .

You have to apply for it whilst in Australia AND have spent at least 2 yrs here previously  so i could wait unitl im 65 claim it and then go but the Uk will just subtract it from my UK pension as foreign earnings so it may well be counterproductive 

We ll manage ..my wife will get the UK pension as long as she spends at least 10yrs working [which she will just slid in under the wire] and so will i  and like i said ill be  working  as soon as hit blighty ..im not moving for another 5 yrs at least as mentioned [ill be 63 by then ]my missus will be 55..i have a lot of contacts back home 

The Aussie pension isn’t an entitlement and whilst you may like to think of it as one, it’s actually a safety net for people who haven’t been able to accrue enough in super. As time goes on and the compulsory super contributions scheme goes on for longer and covers a full working life, fewer people will meet the means test to be able to access it. It’s not like a UK pension at all, it’s a Centrelink benefit. 

[jimmyinoz]

1 hour ago, Quoll said:

The Aussie pension isn’t an entitlement and whilst you may like to think of it as one, it’s actually a safety net for people who haven’t been able to accrue enough in super. As time goes on and the compulsory super contributions scheme goes on for longer and covers a full working life, fewer people will meet the means test to be able to access it. It’s not like a UK pension at all, it’s a Centrelink benefit. 

In that case as, i suspected, taxation here is extortionate  ,and as i stated earlier  i have enough NI payments to draw on 90% of the UK pension  to put some figures on it i can buy a 3bed semi in a village near my home town of Irvine for 59000 outright which after expenses of moving will leave us with around 20kGBP in the bank .. currently running costs of that home including telephone internet etc are around 300 quid a month ,i have several contacts in the transport game which i will ultilise on a part time basis to bring in another 800gbp a month ,not a kings ransom but enough .plus whatever OH brings in   I am nothing if not resourceful ..but i still havent had an answer to my original question?lol

..

 

[jimmyinoz]

So i still havent found an answer to my original question has anyone taken thier super home as a lump and if so what if any tax did they pay on it ?

 

[Marisawright]

18 minutes ago, jimmyinoz said:

In that case as, i suspected, taxation here is extortionate  ,and as i stated earlier  i have enough NI payments to draw on 90% of the UK pension  to put some figures on it i can buy a 3bed semi in a village near my home town of Irvine for 59000 outright which after expenses of moving will leave us with around 20kGBP in the bank .. currently running costs of that home including telephone internet etc are around 300 quid a month ,i have several contacts in the transport game which i will ultilise on a part time basis to bring in another 800gbp a month ,not a kings ransom but enough .plus whatever OH brings in   I am nothing if not resourceful ..but i still havent had an answer to my original question?lol

 

In your original post, you said you wanted to retire in Scotland and you didn't mention your age, so we couldn't give you an answer.  Now I see you're not leaving until you're 63.

Leaving the country doesn't give you any right to draw a lump sum from your super.   You need to look at the rules that apply to all Aussies, whether living in Australia or not. Those rules say that you can withdraw your super as a lump sum IF you're over 60 AND you've stopped working.

So what you'd have to do is wait till you're over 60, then give up your job, tell your superannuation fund  you've retired, and they'll pay you the money.  There is no tax payable.

The thing is, once they've paid you the money, you can get another job in the UK and they can't do anything about it.  You just say your circumstances changed, which they did.

I would say if you've made up your mind, you should think seriously about heading over to the UK as soon as you've reached 60.   That will give you a few extra years of work which will top up your UK pension and you'll find it easier to get a job, too.  

Edited February 6, 2018 by Marisawright

[Marisawright]

To clarify about the Australian aged pension and the UK pension.

The Australian pension is not the same as the UK pension.  It's a benefit, the same as the unemployment benefit, for the less well-off. 

In the UK, you pay NI contributions specifically so you're entitled to a pension when you retire.  In Australia, you pay nothing.  You pay taxes in both countries, but they go to pay for hospitals, roads, schools, etc etc. 

If you get a UK pension in Australia, it counts as income and Centrelink will reduce your Australian pension, because the Australian pension is means-tested.

If you get an Australian pension in the UK, it has no effect on your UK pension.  The UK pension is not means-tested.

[Tulip1]

7 hours ago, jimmyinoz said:

From my research im entitled to 26/30ths of my UK pension and allowed to work 20hours a week  ,that and the fact my missus is a good deal younger than me ..and intends to go back to work when we get home [shes an Aussie but with euro roots } T he only time ive "topped up " my NI was when i had a 716 and was self employed ,didnt need to otherwise , And every UK resident  citizen is entitled to use the NHS regardless [were not Americans lol ]the system was set up by Nye Bevan for that specific purpose to enable universal healthcare regardless of financial means .

I came to Australia for a number of reasons   mainly to give my boy a decent place to grow up ..i arrived with 1800quid no job and no home ,,..but through hard graft and a bit of ingenuity i got sorted  ,I guess i had a bit of a dream about buying a bit of land out in the bush and being self sufficient but thats going to be impossible now ..and in the future possibly illegal..[one state in the US has just made it illegal to come off the grid ].anyway being Scots i have reasearched my home county and house prices are stil reasonable ..and likely to dip in the next five years with brexit etc [my cousin owns a local property company ] so we should just be ready to buy just as the market dips  

What about healthcare for your Aussie wife?

[Tulip1]

7 hours ago, Marisawright said:

Are you over 65??   Are you aware that if you leave before you reach pensionable age, you won't be able to get the Australian pension at all?  Same goes for your wife.   

Your wife has a visa to live and work in the UK  I assume 

[Johnny Kash]

15 hours ago, Marisawright said:

In your original post, you said you wanted to retire in Scotland and you didn't mention your age, so we couldn't give you an answer.  Now I see you're not leaving until you're 63.

Leaving the country doesn't give you any right to draw a lump sum from your super.   You need to look at the rules that apply to all Aussies, whether living in Australia or not. Those rules say that you can withdraw your super as a lump sum IF you're over 60 AND you've stopped working.

So what you'd have to do is wait till you're over 60, then give up your job, tell your superannuation fund  you've retired, and they'll pay you the money.  There is no tax payable.

The thing is, once they've paid you the money, you can get another job in the UK and they can't do anything about it.  You just say your circumstances changed, which they did.

I would say if you've made up your mind, you should think seriously about heading over to the UK as soon as you've reached 60.   That will give you a few extra years of work which will top up your UK pension and you'll find it easier to get a job, too.  

It would be good to get clarity on this.   In terms of reaching preservation age for your Super and stopping working - assuming the OP is back in the UK he will have technically stopped working in Australia (even if he does carry on grafting back in the UK). 

  I asked the question of my Super fund and was told this was the case - if you are not working in Australia at preservation age you satisfy the release conditions.   I'm slightly sceptical of this but would be good to get this confirmed or otherwise.

 

[jimmyinoz]

16 hours ago, Tulip1 said:

What about healthcare for your Aussie wife?

Australia and the UK have a  reciprocal agreement for health care she will get better free healthcare on the NHS than here and  no up front payments. 

After  2 yrs on her 'authority to remain' visa she can apply for UK citizenship i dont see any issue with her getting it. All we have to do is the reverse of what we did to get here 13 yrs ago .

.I did all my own immigration paperwork and research ..a bit long winded but relatively  straight forward ..  i see no reason to pay anyone 5 grand to fill in forms for me ..

[jimmyinoz]

5 hours ago, Johnny Kash said:

It would be good to get clarity on this.   In terms of reaching preservation age for your Super and stopping working - assuming the OP is back in the UK he will have technically stopped working in Australia (even if he does carry on grafting back in the UK). 

  I asked the question of my Super fund and was told this was the case - if you are not working in Australia at preservation age you satisfy the release conditions.   I'm slightly sceptical of this but would be good to get this confirmed or otherwise.

 

thanks that s what i was after ..i understand why they wouldnt want the money going out of the country [and as long as this govt dosent change the goal posts again it should be ok ] i intend to declare retirement BEFORE i leave ,and transfer the funds for the house to my cousin ,who  owns a property /real estate company, for the purchase of a house,  She will then rent out and manage the property untill we leave a few months later [i can work while were waiting to exit Australia,  logistically this makes more sense 

 

 

[jimmyinoz]

she will have yes   she will apply for indefinte leave to remain in the UK  as an Australian citizen , being of good character and being married to a Uk national i dont see any problem with this .

yes the UK govt can be assholes when it comes to foreign nationals settling there but ive  every confidence that we can overcome any issues ..after all we are  a legitimate couple lol 

[Skani]

4 minutes ago, jimmyinoz said:

.after all we are  a legitimate couple lol 

Being a "legitimate couple" doesn't have anything to do with it now....as many legitimate couples are finding out.     But, from what you've said, you will have the employment salary and/or savings to satisfy the prerequisites for importing a legitimate spouse. 

[jimmyinoz]

10 minutes ago, Skani said:

Being a "legitimate couple" doesn't have anything to do with it now....as many legitimate couples are finding out.     But, from what you've said, you will have the employment salary and/or savings to satisfy the prerequisites for importing a legitimate spouse. 

lol my missus just read this and said " Im not a bloody  a mail order bride"  lol 

[jimmyinoz]

20 hours ago, Marisawright said:

To clarify about the Australian aged pension and the UK pension.

The Australian pension is not the same as the UK pension.  It's a benefit, the same as the unemployment benefit, for the less well-off. 

In the UK, you pay NI contributions specifically so you're entitled to a pension when you retire.  In Australia, you pay nothing.  You pay taxes in both countries, but they go to pay for hospitals, roads, schools, etc etc. 

If you get a UK pension in Australia, it counts as income and Centrelink will reduce your Australian pension, because the Australian pension is means-tested.

If you get an Australian pension in the UK, it has no effect on your UK pension.  The UK pension is not means-tested.

awesome  Still i dont want to wait till im 65 just to get a few extra dollars 

[Marisawright]

23 minutes ago, jimmyinoz said:

awesome  Still i dont want to wait till im 65 just to get a few extra dollars 

That's up to you, I'm clarifying because other people may be reading this thread for information.

[jimmyinoz]

Just now, Marisawright said:

That's up to you, I'm clarifying because other people may be reading this thread for information.

got it  thanks for the advice ..

 

[Quoll]

1 hour ago, jimmyinoz said:

Australia and the UK have a  reciprocal agreement for health care she will get better free healthcare on the NHS than here and  no up front payments. 

After  2 yrs on her 'authority to remain' visa she can apply for UK citizenship i dont see any issue with her getting it. All we have to do is the reverse of what we did to get here 13 yrs ago .

.I did all my own immigration paperwork and research ..a bit long winded but relatively  straight forward ..  i see no reason to pay anyone 5 grand to fill in forms for me ..

That’s 3 years residence before she can apply for citizenship these days as the spouse of a U.K. citizen.  On a spouse visa there may be some benefits that you, as a couple cannot access but you might otherwise have been entitled to,  because during that time she will not be able to access any tax payer funded support. You will have to demonstrate that you have enough funds to support her - an income of £18.5k P.A. or savings of £62.5k.  I think you effectively have to apply every couple of years for it to continue (one of my friends was in that position)  It’s nothing like the reverse of a spouse application for Australia, but, yeah, lots of forms.