Martinbjulieb Posted February 3 Share Posted February 3 Do you actually have to stop working at 60 to claim your super is you no longer live in Australia? 2 Quote Link to comment Share on other sites More sharing options...
Marisawright Posted February 3 Share Posted February 3 2 hours ago, Martinbjulieb said: Do you actually have to stop working at 60 to claim your super is you no longer live in Australia? The same rules apply whether you're in Australia or overseas. Quote Link to comment Share on other sites More sharing options...
Nemesis Posted February 3 Share Posted February 3 2 hours ago, Martinbjulieb said: Do you actually have to stop working at 60 to claim your super is you no longer live in Australia? Although you may have to retire from work in order to access your Super, if circumstances change you can always start work again at a later date. Quote Link to comment Share on other sites More sharing options...
InnerVoice Posted February 4 Share Posted February 4 (edited) 6 hours ago, Martinbjulieb said: Do you actually have to stop working at 60 to claim your super if you no longer live in Australia? That's an interesting question and I believe the answer is 'no', assuming that 60 is your preservation age (the age at which you can normally access your super). I'm with QSuper and they have something called a Transition to Retirement (TTR) Income account where you can receive payments from your super while you're still working, so I'd assume that other super funds have similar. I'm sure you're aware that if you keep working you're going to get taxed on the lot by the HMRC, which is a bit of a blow considering you've already paid tax on your contributions while you lived in Australia. I appreciate the following suggestion might be impractical, but if we're talking about a considerable sum then it might be worth considering moving back to Australia for a year and cashing in your super once you reach preservation age. That's assuming you were a citizen when you left, so you can return without any issues. Edited February 4 by InnerVoice Quote Link to comment Share on other sites More sharing options...
InnerVoice Posted February 4 Share Posted February 4 1 hour ago, InnerVoice said: I'm sure you're aware that if you keep working you're going to get taxed on the lot by the HMRC, which is a bit of a blow considering you've already paid tax on your contributions while you lived in Australia. I appreciate the following suggestion might be impractical, but if we're talking about a considerable sum then it might be worth considering moving back to Australia for a year and cashing in your super once you reach preservation age. That's assuming you were a citizen when you left, so you can return without any issues. I should add that it doesn't have to be Australia - you could spend a year in any country with a low tax regime, or one that doesn't tax overseas income. Quote Link to comment Share on other sites More sharing options...
Ken Posted February 4 Share Posted February 4 4 hours ago, InnerVoice said: I should add that it doesn't have to be Australia - you could spend a year in any country with a low tax regime, or one that doesn't tax overseas income. Beware that if you only leave for a year and do so with the intent of returning to the UK, you will not cease to be a UK resident and so (if HMRC choose to pursue it) are liable to be taxed on your worldwide income for the year you were away. 1 1 Quote Link to comment Share on other sites More sharing options...
Amber Snowball Posted February 4 Share Posted February 4 5 hours ago, InnerVoice said: That's an interesting question and I believe the answer is 'no', assuming that 60 is your preservation age (the age at which you can normally access your super). I'm with QSuper and they have something called a Transition to Retirement (TTR) Income account where you can receive payments from your super while you're still working, so I'd assume that other super funds have similar. I'm sure you're aware that if you keep working you're going to get taxed on the lot by the HMRC, which is a bit of a blow considering you've already paid tax on your contributions while you lived in Australia. I appreciate the following suggestion might be impractical, but if we're talking about a considerable sum then it might be worth considering moving back to Australia for a year and cashing in your super once you reach preservation age. That's assuming you were a citizen when you left, so you can return without any issues. I thought the TTR was only if you were in Australia, as you would take your income stream from your super, salary sacrifice your maximum back into your super, thus paying little/no tax. Had a colleague who did it! What I have read is that outside of Australia you have to meet the age/retirement requirements, but you can return to work after “retiring “ as long as you were “not planning to work “ when you took your super. And how would the Australian super fund know anyway? It seems to be a statement of intent at best. I was interested in this question as well, thanks @Martinbjulieb! I was going to see how the landscape looked in 8 years for me. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted February 4 Share Posted February 4 (edited) 1 hour ago, Amber Snowball said: What I have read is that outside of Australia you have to meet the age/retirement requirements, but you can return to work after “retiring “ as long as you were “not planning to work “ when you took your super. Yes, that is absolutely true. You just have to show that you've given up work. They don't care if you subsequently changed your mind and go back to work. However I'm with you, I don't see how you could do Transition to Retirement while overseas, because your employer wouldn't pay into super for you. Edited February 4 by Marisawright 1 Quote Link to comment Share on other sites More sharing options...
InnerVoice Posted February 4 Share Posted February 4 3 hours ago, Amber Snowball said: I thought the TTR was only if you were in Australia, as you would take your income stream from your super, salary sacrifice your maximum back into your super, thus paying little/no tax. Had a colleague who did it! What I have read is that outside of Australia you have to meet the age/retirement requirements, but you can return to work after “retiring “ as long as you were “not planning to work “ when you took your super. And how would the Australian super fund know anyway? It seems to be a statement of intent at best. 1 hour ago, Marisawright said: Yes, that is absolutely true. You just have to show that you've given up work. They don't care if you subsequently changed your mind and go back to work. However I'm with you, I don't see how you could do Transition to Retirement while overseas, because your employer wouldn't pay into super for you. I don't believe there are any rules stating that you can't take a TTR pension overseas. You wouldn't get the tax benefits from the Australian system, but that's by the by. As you said, the simplest solution is to retire, claim your super, and then re-join the workforce afterwards, but that doesn't accurately reflect you intentions does it? Quote Link to comment Share on other sites More sharing options...
Marisawright Posted February 4 Share Posted February 4 (edited) 46 minutes ago, InnerVoice said: I don't believe there are any rules stating that you can't take a TTR pension overseas. But the way the TTR works is that you salary sacrifice into your superannation, and then draw an income stream at the same time. Would an overseas employer be willing/able to pay your salary directly into super before tax? Wouldn't it depend on the taxation rules in your chosen country? Edited February 4 by Marisawright Quote Link to comment Share on other sites More sharing options...
Amber Snowball Posted February 4 Share Posted February 4 1 hour ago, InnerVoice said: I don't believe there are any rules stating that you can't take a TTR pension overseas. You wouldn't get the tax benefits from the Australian system, but that's by the by. As you said, the simplest solution is to retire, claim your super, and then re-join the workforce afterwards, but that doesn't accurately reflect you intentions does it? Still a long way off for me, so it might have all changed by then. Taking an income stream via TTR without paying back in via salary sacrifice would just be the same as retiring wouldn’t it? Although the way the money is invested by the fund is different isn’t it, as super if TTR, but it moves to something different as a pension income I think…..?? If I think I mean it when I say it, it makes it true doesn’t it…….. 1 Quote Link to comment Share on other sites More sharing options...
Nemesis Posted February 4 Share Posted February 4 1 hour ago, Marisawright said: But the way the TTR works is that you salary sacrifice into your superannation, and then draw an income stream at the same time. Would an overseas employer be willing/able to pay your salary directly into super before tax? Wouldn't it depend on the taxation rules in your chosen country? Far from an expert, but when I opened my TTR (while in Oz) I instantly withdrew the maximum allowed for the year (to fund my move) and didn't have any requirement to salary sacrifice anything back into it. 2 months later I officially retired and could access the rest of my Super. Had no intention to return to work at the time, but I did do so when my "circumstances changed" a couple of months after that. I was advised its about "intent". As long as you don't intend to return to full-time work at the time you take the money, thats fine 2 Quote Link to comment Share on other sites More sharing options...
InnerVoice Posted February 4 Share Posted February 4 11 hours ago, Marisawright said: But the way the TTR works is that you salary sacrifice into your superannation, and then draw an income stream at the same time. Would an overseas employer be willing/able to pay your salary directly into super before tax? Wouldn't it depend on the taxation rules in your chosen country? It's going to advantageous to do that, but it isn't a requirement. As Nemesis has said, you can take a TTR pension without salary sacrificing. I doubt that an overseas employer would be willing/able to pay your salary directly into super before tax, but it would be interesting to know. 1 Quote Link to comment Share on other sites More sharing options...
Marisawright Posted February 5 Share Posted February 5 5 hours ago, InnerVoice said: It's going to advantageous to do that, but it isn't a requirement. As Nemesis has said, you can take a TTR pension without salary sacrificing. Really? I had no idea. Quote Link to comment Share on other sites More sharing options...
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