Pommyaussie Posted November 4, 2018 Share Posted November 4, 2018 (edited) Hi please can someone shed some light on how final salary pensions work in terms of transferring from UK to Aus? I have been sent some pension info regarding a final salary scheme and various options for me to choose from i.e. lump sum or annual amount or mixture of both. Im still not sure which option to choose however one question I have - apparently I can draw an annual amount at age 55 - my question is if I decide on this option - I believe this would have to be transferred to an Australian QROPS to access it? Can I still obtain this annual amount from age 55 as I believe you can't access anything until age 60 in Aus? Edited November 4, 2018 by Pommyaussie Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted November 4, 2018 Share Posted November 4, 2018 Hello Pommyaussie What pension is this please ie private or government (NHS etc)? Accessing the pension benefits at retirement is totally different to transferring to a Australian QROPS. You are right in that it may be possible to access benefits from a UK pension from age 55 and typically the age from an Australian Super is from age 60 (potentially with limitations). However there may be a reduction in the benefits accessed from a final salary (defined benefit) scheme if the scheme retirement age is higher than age 55. Regards Andy Quote Link to comment Share on other sites More sharing options...
Pommyaussie Posted November 4, 2018 Author Share Posted November 4, 2018 Hi Andy cheers for that - its a private pension from a company I used to work for in the UK it's not much - about $6 k a year but I wasn't sure why I have been told I can receive this annual payment at age 55 when over here in Aus you apparently can't draw it out until 60 Is that right? This is also complicated by the fact I'm now on a small disability pension ( because my other half works the disability pension is minimal) so I presume the disability pension will be reduced by the amount I receive in pension payments - if I can draw on it that is? Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted November 4, 2018 Share Posted November 4, 2018 Hi again I'll try and give you general answers to your questions first. UK rules Typically access from age 55 however if a final salary scheme and that scheme retirement age is higher than age 55 (if they allow access from age 55) the benefit amount will be reduced. Aus rules Based around preservation age and retirement: https://www.ato.gov.au/super/self-managed-super-funds/paying-benefits/preservation-of-super/ If over preservation age, not retired and under age 65 then possibly able to access 10% of the balance annually. However if over preservation age and retired or 65+ then access up to 100%. Disability pension As you will be aware Centrelink means test the disability pension based on assets and income therefore an increase in your income is very likely to affect your disability pension amount. The second point is in consideration of a transfer to an Australian QROPS. As you point out the pension is quite small, given this and the mandatory requirement to take UK FCA advice (if considering a transfer out of a defined benefit scheme) and the fact that the only Australian QROPS option currently is the self managed super fund option then I'd say that it would be very unlikely a transfer will be viable. Hope this helps. Andy Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.