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Ruth1

NHS pension

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I am giving myself a headache trying to work all this out so apologies if the answers are elsewhere but I am struggling. Does an NHS pension continue to get uprated each year by the cpi + 1.5% if we emigrate or will it be frozen like the state pension is for expats in Aus. This is whilst working age and working in Aus, not as a retiree.. I know we cant transfer it over anymore and I am happy to keep a defined benefit pot but dont want it losing value if frozen..

Also, long way off but how is it then taxed if we stay in Aus?

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If you have not yet reached pension age your pension amount has not yet been calculated!  It will depend on how many years you’ve contributed and the rules do change.  Once you start receiving your UK pension it is frozen at that rate while you are in Australia.  Each time you go back to the UK or certain other countries the rate is updated to the current rate for the time you are in that country but reverts to the frozen rate once back in Oz.  You have to declare it when you do your yearly tax return in Oz and you are taxed on it.

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2 minutes ago, Cup Final 1973 said:

If you have not yet reached pension age your pension amount has not yet been calculated!  It will depend on how many years you’ve contributed and the rules do change.  Once you start receiving your UK pension it is frozen at that rate while you are in Australia.  Each time you go back to the UK or certain other countries the rate is updated to the current rate for the time you are in that country but reverts to the frozen rate once back in Oz.  You have to declare it when you do your yearly tax return in Oz and you are taxed on it.

I was specifically referring to the NHS pension as I have a current defined 'pot' that I will get each year.. I should have been clearer, apologies.

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As far as I know ( my wife receives an NHS pension) the NHS pension is not subject to a freeze once you leave the UK and will enjoy a yearly increase  unlike the state pension .

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12 minutes ago, RandL said:

As far as I know ( my wife receives an NHS pension) the NHS pension is not subject to a freeze once you leave the UK and will enjoy a yearly increase  unlike the state pension .

Great. Thats good to know, thanks!

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4 hours ago, Ruth1 said:

I was specifically referring to the NHS pension as I have a current defined 'pot' that I will get each year.. I should have been clearer, apologies.

Sorry Ruth.  Completely missed the NHS bit!

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Posted (edited)

Hi Ruth

To confirm unlike the UK State Pension for Australian residents the NHS pension will increase annually in line with the relevant indexation.

Regards Andy

 

Edited by Andrew from Vista Financial
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Financial Adviser (FPA Member AFP ®) / Tax (Financial) Adviser (TPB)

SMSF Specialist Advisor™ (SSA™) / UK SIPP Authorised Adviser 

Specialising in UK Expat Retirement Planning Advice and Pension Transfers 

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

AR-322874 /AFSL-234951

 

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

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