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Mr Monkey

Super query - over 60

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Hi all,

Many years since I was here last, great to see you're still here helping people.

 

My query is

Am 61, have been here 10 years on skilled temp visas, my latest one expires next July & I'm fairly sure we'll be heading home then.

A bit unsure what to do about my Super. As I said, I'm over 60 and believe this means I can with draw without penalty.  Should i be drawing this down & transfering it home? Does it make sense to do this gradually or all at once?

My wife is a few years younger, is it best to leave her Super here until she's at retirement age/ another age/ as she'd be taxed on anything she draws down?

 

Any help, whether specific or generic is very welcome

 

Thanks in advance

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Your super will be tax free if you can draw it whilst you are in Australia. Once you are in UK it will be taxed.  You can’t transfer super to a UK pension. 

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So many wineries ......so little time :yes:

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The first thing I'd do is ring your superannuation fund and make sure you are eligible to take a lump sum payment.  If you are, then yes, it makes sense to withdraw the entire balance before you leave Australia.   Once you've withdrawn the money and it's sitting in your Australian bank account, it becomes just savings, and you can do whatever you want with it without incurring any tax.    Be careful though, because it must hit your bank account before you leave, while you're still resident in Australia.  If you're already overseas by then, the British taxman will take a massive chunk of it! 

In your wife's case, it would be good to get a financial expert to compare how much she'll lose to the Australian taxman if she takes her super early, vs how much the British taxman will take if she leaves it till you've left the country.

As Rammygirl says, there's no way to transfer the money to a British pension but you might want to invest in one using those funds once you get back to the UK.

Edited by Marisawright
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Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

"The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

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Have a chat with @Andrew from Vista Financial he is our pensions guru and has helped a large majority of our members, myself included. 

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If you are depressed you are living in the past. If you are anxious you are living in the future. If you are at peace you are living in the present.

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On 29/09/2020 at 16:05, Mr Monkey said:

Hi all,

Many years since I was here last, great to see you're still here helping people.

 

My query is

Am 61, have been here 10 years on skilled temp visas, my latest one expires next July & I'm fairly sure we'll be heading home then.

A bit unsure what to do about my Super. As I said, I'm over 60 and believe this means I can with draw without penalty.  Should i be drawing this down & transfering it home? Does it make sense to do this gradually or all at once?

My wife is a few years younger, is it best to leave her Super here until she's at retirement age/ another age/ as she'd be taxed on anything she draws down?

 

Any help, whether specific or generic is very welcome

 

Thanks in advance

Hello

Probably not the reply you want however I understand that as a temporary resident typically (some exclusions may apply, for example a New Zealand Citizen) you are not able to claim your superannuation under the same conditions of release as a permanent resident or citizen (for example at retirement) and instead there are only limited conditions that would enable access,  such as disability or death/terminal illness and (the one that you would be likely to have to apply under) the Departing Australia Superannuation Payment (DSAP).

This article covers it off quite well: https://www.publicaccountant.com.au/features/temporary-residents-and-superannuation 

Regards

Andy

 

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Financial Adviser (FPA Member AFP ®) Specialising in UK Expat Advice and Pension Transfers / AR-322874 /AFSL-234951

SMSF Accredited Adviser / UK SIPP Authorised Adviser 

Director  - Vista Financial Services – www.vistafs.com.au 08 8381 7177

 

Please note that my advice is general advice only and professional financial advice should be sought for your own personal situation.

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Thanks very much to everyone who has posted, and apologies for my tardy response, due in almost equal measure to pressure of work & personal health.

 

I appreciate all the advice, although clearlythe advice from https://www.pomsinoz.com/profile/215485-andrew-from-vista-financial/  wasn't what I hoped to hear, as he says himself.

 

I think the advise I was given previously came from this  or something similar  https://www.superguide.com.au/how-super-works/access-super-cease-employment-60#Other_conditions_of_release

I've been here long enough to know that, although I pay the same tax as an Aussie citizen or PR holder  (without many of the benefits) the governement will look to slaughter the money saved in my super because... well just because.  No one said life was fair.

 

Given my visa is based on working, I guess I can't retire from my employer and ask for my Super in a lump sum before I'm forced to leave?

If anyone has further views I'd love to hear them. Thanks again to those who have posted already, it's genuinely appreciated

 

Edited by Mr Monkey

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