Moving Back to the UK from Australia - Positive Stories

[Paul1Perth]

On Thursday, June 14, 2018 at 16:02, Marisawright said:

People in the UK think you're living "Home and Away", so of course they think you're crazy.  They see your life as a paradise because all they can think about is sun and the beach, but you know that's not what life is about. You've clearly given Australia a red hot go and you know it's not for you. Don't let other people talk you out of it!

Home and away? No, it's much better than that. Summer Bay must be the murder and disaster capital of Aus.

[Liam]

Just joined this group, despite having lived in Oz for 25 years on and off. Very interested in this subject, as although I have not relocated back to the UK, I have made the decision to do so within the next two years. I was especially interested in others mentioning a "sense of belonging". Like others, I had to return for six months in 2011 to care for my ageing parents. After  I returned here to Adelaide, I felt I no longer belonged here. On the plus side, I was lucky enough to alleviate this feeling by doing lots of travelling, including at least 8 trips back to Europe. So happy to see so many people on here have made a success of the move. I hope I can say the same in a few years time. 

[Marisawright]

1 hour ago, Liam said:

Just joined this group, despite having lived in Oz for 25 years on and off. Very interested in this subject, as although I have not relocated back to the UK, I have made the decision to do so within the next two years. I was especially interested in others mentioning a "sense of belonging". Like others, I had to return for six months in 2011 to care for my ageing parents. After  I returned here to Adelaide, I felt I no longer belonged here. On the plus side, I was lucky enough to alleviate this feeling by doing lots of travelling, including at least 8 trips back to Europe. So happy to see so many people on here have made a success of the move. I hope I can say the same in a few years time. 

 

How old are you? If you're thinking of moving back, it's very important to be aware of things like pensions, because moving back at the wrong time, without making preparations, can cost you a lot of money.

Firstly, be aware that if you leave Australia before you reach pensionable age, you will not get the Australian pension, ever (I'm talking about the aged pension, not your superannuation).   At the same time, you probably won't have enough NI contributions to get the British pension either. 

If you've got plenty of superannuation and don't think you'll ever need the state pension, that's fine - but most people feel happier having that safety net.  So it would be wise to start paying Class 2 contributions to top up your British pension now. They're about to change the law to stop people doing that, so be quick. 

Edited October 24, 2018 by Marisawright

[paulswin]

On 30/07/2018 at 14:08, Amber Snowball said:

Hi Marisawright when does that stop being able to top up NI contributions?

 

[Marisawright]

I think you'll still be able to top up, they are just making it less flexible.  For instance, right now you can back-pay six years and you can pay Class 2 instead of Class 3.  Some of that is changing next year.

Edited October 24, 2018 by Marisawright

[paulswin]

Thanks for that whats the difference between class 2 and 3

[Marisawright]

30 minutes ago, paulswin said:

Thanks for that whats the difference between class 2 and 3

Class 3 is more expensive.  

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/668585/NI38_12_17.pdf

[Drumbeat]

2 hours ago, Marisawright said:

I think you'll still be able to top up, they are just making it less flexible.  For instance, right now you can back-pay six years and you can pay Class 2 instead of Class 3.  Some of that is changing next year.

Do you know what will be changing? I have a table of what pay to backdate but haven't paid it as yet

[paulswin]

Ha got it now!   Glad I saw this post as I have just set up a uk gov gateway account which is great as can see exactly what i owe in NI contributions   Id meant to do it a while ago but forgot what with everything else going on lol!

[Amber Snowball]

1 hour ago, paulswin said:

Ha got it now!   Glad I saw this post as I have just set up a uk gov gateway account which is great as can see exactly what i owe in NI contributions   Id meant to do it a while ago but forgot what with everything else going on lol!

No expert but I think it is good to get advice as to how much to back pay. Under the new rules it could work out that you could back pay more than you need to and it wouldn’t increase your pension at the end. Need 35 years of contributions for full pension I think, but do double check! My understanding is basic at best. Probably different between the classes of NI as well.......

You quoted me above but pretty sure I never asked that question! Strange!

Good luck with your move. 

[Liam]

Thanks for the reply, Marisa.

Actually the reason I joined on here was to get advice about age pensions.

I turn 60 next July. So am eligible for an age pension in the UK in July 2025. Being somewhat of a "ping-pom", I have 21 years of NI contributions, so my understanding is I should receive about two thirds of the age pension once I reach 66.I also have two small pension plans in the UK as well as a reasonable amount of super here.

The reason for the two year timetable is to hopefully work here for the next 18 months and generate some more retirement funds as well as give me a long time to sell my property here. 

However I am intrigued about your comment about the Australian age pension. An anomaly of being born I  1959 means I would be eligible for that in July 2026. A very brief enquiry to CentreLink implied that if I was to come back to Australia for a brief period before then and apply for the age pension when I turn 67 while in the country, I would be eligible for it, since I hold Australian citizenship? Of course, it would be adjusted downwards because of my UK age pension income. But if that's possible, it would be silly not to try? 

I suppose all this is still several years away and the rules may very well change in the meantime. 

Anyone else in a similar position? 

 

 

[Marisawright]

1 hour ago, Liam said:

I am intrigued about your comment about the Australian age pension. An anomaly of being born I  1959 means I would be eligible for that in July 2026. A very brief enquiry to CentreLink implied that if I was to come back to Australia for a brief period before then and apply for the age pension when I turn 67 while in the country, I would be eligible for it, since I hold Australian citizenship?

They are right, but the "brief period" is TWO YEARS.   You can't just arrive in Australia, claim it and then leave again.   You must remain in Australia for the full two years, or they'll remove it.

I don't know about you, but when I looked into it, I couldn't imagine uprooting myself at 67 to go and live in Australia for two years, then uproot myself at 70 to move back to the UK again. 

How many years were you working in Australia before 2000?   Once you're resident in the UK (not before), you can apply to have those years recognised as counting towards your NI contributions. Unfortunately the years after 2000 don't count.  

If, after adding those years in, you're still short of a full pension, you can choose to pay extra contributions - for the next 18 months' working, and you can also choose to backpay missed years.  As Amber says, you should probably sit down and try to work out what difference it will make.  In my case, the amount wasn't that big so I just paid it to be on the safe side!  I reckon, even if it only gets me a few extra pounds a month, I'm going to be getting it for the rest of my life so it could pay off.

Citizenship has absolutely no bearing on your right to the Australian pension, but the way - it's entirely about residency. 

Edited October 25, 2018 by Marisawright

[Rosiegirl]

I am also interested in this.  We want to return to the UK in around 4-5 years.  We are already in our mid fifties and so this will mean that we will not get the aged pension.  However, I have been looking at the possibility of retiring to Southern Ireland or Spain where there are agreements in place (at least for now) https://www.humanservices.gov.au/individuals/enablers/countries-have-international-social-security-agreements-australia

Has anyone done this?

Thanks

Edited October 25, 2018 by Rosiegirl
spelling

[Marisawright]

50 minutes ago, Rosiegirl said:

I am also interested in this.  We want to return to the UK in around 4-5 years.  We are already in our mid fifties and so this will mean that we will not get the aged pension.  However, I have been looking at the possibility of retiring to Southern Ireland or Spain where there are agreements in place (at least for now) https://www.humanservices.gov.au/individuals/enablers/countries-have-international-social-security-agreements-australia

Has anyone done this?

I haven't done it but we did look into it.  You are correct, there are agreements in place, not just with those countries but with most European countries.  So if you move there, you will be able to claim the Australian pension while you are resident in one of those countries.

It's worth noting that the type of agreement Australia has with Ireland and Spain are the norm - it's the British one that's out of step - and they've been in place for a long time.

[Nemesis]

All those looking at the Australian aged pension, remember that it is means tested, unlike the UK one. A full UK pension and any super will reduce or may even cancel out the oz pension. 

[Liam]

20 hours ago, Marisawright said:

How many years were you working in Australia before 2000?   Once you're resident in the UK (not before), you can apply to have those years recognised as counting towards your NI contributions. Unfortunately the years after 2000 don't count.  

Thanks for that, Marisa. I worked in Oz for about 10 years prior to 2000, so if I  can count them, that would be a bonus. 

[Marisawright]

1 hour ago, Liam said:

Thanks for that, Marisa. I worked in Oz for about 10 years prior to 2000, so if I  can count them, that would be a bonus. 

Great news, you can add those ten years which will give you 31 years' contributions, which will give you the full British pension - no need to pay any extra contributions. 

From memory they ask you to submit evidence so see if you can dig out any references, pay slips, tax returns etc from that time, or even just an old CV showing the dates. 

[Liam]

48 minutes ago, Marisawright said:

From memory they ask you to submit evidence so see if you can dig out any references, pay slips, tax returns etc from that time, or even just an old CV showing the dates. 

Thanks once again for all your help. Was wondering about evidence. Don't think I have my old tax returns but probably be able to get something from my old employer.

[NickyNook]

1 hour ago, Marisawright said:

Great news, you can add those ten years which will give you 31 years' contributions, which will give you the full British pension - no need to pay any extra contributions. 

 

Not so for the New State Pension. 

For men born after 6/4/1951 and women born after 6/4/1953 - they need 35 years of NI contributions to qualify for a full pension. 

[Marisawright]

13 minutes ago, NickyNook said:

Not so for the New State Pension. 

For men born after 6/4/1951 and women born after 6/4/1953 - they need 35 years of NI contributions to qualify for a full pension. 

Oops, the dangers of the internet.  i checked it on the UK pensions site but there must have been another link I failed to notice.

In that case, @Liam, you'll need to pay another 4 years to get the maximum pension.  It would be worth checking to see how much difference that 4 years makes.

[TazG]

On 26/10/2018 at 11:33, NickyNook said:

Not so for the New State Pension. 

For men born after 6/4/1951 and women born after 6/4/1953 - they need 35 years of NI contributions to qualify for a full pension. 

so if I move back next year aged 44 i will need to work for 20 years and top up 15yrs worth of contributions to get a full pension?

[NickyNook]

28 minutes ago, TazG said:

so if I move back next year aged 44 i will need to work for 20 years and top up 15yrs worth of contributions to get a full pension?

Not sure you can top up as many as 15 years. You'd need to check that.

Did you work in Australia prior to 2001? If so, you can count those years towards the 35 years required.

[Marisawright]

36 minutes ago, TazG said:

so if I move back next year aged 44 i will need to work for 20 years and top up 15yrs worth of contributions to get a full pension?

You can only pay a maximum of six years top-up. 

While you are working in Australia, you can choose to pay NI contributions so that’s worth looking into

[TazG]

2 minutes ago, NickyNook said:

Not sure you can top up as many as 15 years. You'd need to check that.

Did you work in Australia prior to 2001? If so, you can count those years towards the 35 years required.

I have lived in Australia since 1988 and was only 14 when I came here so never actually got an NI number... 

[Marisawright]

4 hours ago, TazG said:

I have lived in Australia since 1988 and was only 14 when I came here so never actually got an NI number... 

In that case, your first statement was probably right