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Pay into a uk pension from Australia?


daveysing

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Hi

Im hoping to get advice on starting up a uk pension from Australia.

I'm a 36 year old self employed bricklayer in Melbourne, but looks like I will be returning to the UK in the future.( next 5 years or so).

I dont have a private pension fund set up there ( UK) so I am desperate to start one up and get paying into one if I can.I don't know the laws though and I don't know what I should do. ( tax relief,  exchange rates etc).

I am a PR here and my understanding is my super can't be taken over there with me as I am on a permanent visa according to CBUS and can't touch until retirement age. There isn't much in there anyway and I still need a pension fund in the UK.

I need to start a pension up from scratch for over there (UK) ,but don't know how or what to do.I don't want to leave it any longer though because of my age.

Any advice would be much appreciated as at the moment I don't know how to go about this.

 

Thanks

David

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I can't answer your question, but remember that although you can't touch your Australian pension until retirement age, it will go on growing because it will be earning all that time.  So it may well be worth something by the time you get to retirement age.    Make a note to inform cBus as soon as you've left Australia, and tell them to cancel all insurances immediately. That will reduce your fees.

Do make sure you get your citizenship before you go.  Even if you think you don't want to come back, you never know what might happen in the future.

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10 hours ago, daveysing said:

Hi

Im hoping to get advice on starting up a uk pension from Australia.

I'm a 36 year old self employed bricklayer in Melbourne, but looks like I will be returning to the UK in the future.( next 5 years or so).

I dont have a private pension fund set up there ( UK) so I am desperate to start one up and get paying into one if I can.I don't know the laws though and I don't know what I should do. ( tax relief,  exchange rates etc).

I am a PR here and my understanding is my super can't be taken over there with me as I am on a permanent visa according to CBUS and can't touch until retirement age. There isn't much in there anyway and I still need a pension fund in the UK.

I need to start a pension up from scratch for over there (UK) ,but don't know how or what to do.I don't want to leave it any longer though because of my age.

Any advice would be much appreciated as at the moment I don't know how to go about this.

 

Thanks

David

Are you paying any tax in the UK at the moment? If not then you aren't going to get any tax relief from paying in to a UK pension fund. You can get tax relief from paying in to an Australian Super Fund - but that may leave the funds in the wrong country when you retire. Your employer must contribute SGC (currently 9.5%) to an Australian Super Fund. Australian pensions are not tax free in the UK - but you'll still have your tax free allowance (and it's bigger for pensioners) so that doesn't mean you will to pay tax on it.

If you had a big enough Super fund you could put it into an SMSF and then invest in UK funds and currency to reduce risk - but that's undoubtedly going to be expensive to do and the extra cost (unless you have a very large fund) will outweigh the benefit.

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21 minutes ago, Ken said:

If you had a big enough Super fund you could put it into an SMSF and then invest in UK funds and currency to reduce risk - but that's undoubtedly going to be expensive to do and the extra cost (unless you have a very large fund) will outweigh the benefit.

The only trouble with an SMSF is that he's planning to move back to the UK.  Non-residents get slugged the top rate of tax on a SMSF.

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  • 4 weeks later...
24 minutes ago, cam123 said:

If you do save into a Super then you may be able to get the Departing Australia Superannuation Payment (DASP) when you leave, although this will be taxed heavily.

 

He has PR so he can't withdraw his super till retirement age.  Only people on temp visas can claim a DASP

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  • 1 month later...

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