Blueollieriley1

Hi
This might sound like a silly question.
To be eligible for an Australian Pension , you have to meet the 10 year residency rule.
When myself and my partner teach Australian retirement age we will probably not have been in Australia as a resident for that amount of years.
My quaestion is....do you have to claim the pension at 67 , as the age will be then, or can you wait until you meet the 10 year rule?
Also I understand that UK Pension is classed as income and therefore deducted at a rate of 50cents / dollar over the Australian Pension rate.
So basically your UK Pension is reduced by half.
This is obviously not a problem but just wondering if I have my facts right..
Any advice greatly appreciated
Thanks

verystormy

I can't comment on how a UK pension is taxed, but be aware, the U.K. pension is frozen. So you will never get an annual increase, so it will depreciate. Also, the Australian pension is not a right like the UK. It is a part of social security and fully means tested.

quoll

It’s not just the residency - it’s not an entitlement, it’s a social welfare benefit so you may not be ever eligible for it if you have assets and income over the threshold. Assume you won’t get it in your calculations and go from there.

spouse of scouse

For further information see here https://www.humanservices.gov.au/ind...nk/age-pension

sign

Worldwide assets of less than $188k. That's houses. Pension pot. Gold ear rings.
Reside in Oz for a full ten years. Five consecutive.
PR visa holder or citizen.
Full Ozzy state pension.

Its better than the UK equivalent.

ozzieeagle

Where did you get that 188K assets test figure from ? According to the government website its far higher than that.


https://www.humanservices.gov.au/ind...nablers/assets

Full pension cuts starts to cut off at 253K for a home owner and 456K for a non home owner and for a couple that figure rises to 380K for a homeowning couple and 583K for a non home owning couple (renters).

Any accountant or financial advisor will tell you that it is well worth trying to get that Pension card at close to the part pension cut off figure.


If you're: Homeowners Non-homeowners
single $253,750 $456,750
in a couple, combined $380,500 $583,500
illness separated couple, combined $380,500 $583,500
one partner eligible, combined $380,500 $583,500





The Part pension is way higher.


If you're: Homeowners Non-homeowners
single $556,500 $759,500
in a couple, combined $837,000 $1,040,000
illness separated couple, combined $986,000 $1,189,000
one partner eligible, combined $837,000 $1,040,000


Reason I take a keen interest I'm trying to get the pension card and just come in under the part pension cut off which for us is 837K in assets above our house...... I've been doing lots of renos as to spend the money. I quailfy in 3 years from this month at age 66 for me. So my wife has to stop work then as well If we are to get the part pension. She'll be retiring 4 years early. I'm actually considering building a boody cellar now lol...... that should clear the excess.

Then we will spend the bulk of our super on trips etc and then plan to sell our house, downsize and invest in a pension scheme, with the excess.... when we feel too old to comfortable travel and or spend plenty of time residing overseas for part of the year.


Not sure it's a good idea to be wealthy in your older years, nursing home years..... the government will just take your dosh in health care costs.

sign

Even better news then kid. Enjoy you're retirement. Cheers. Bottoms up....

Pollyana

You don't need to be resident in the UK to start claiming your UK pension. You do have to be resident in Aus.

UK isn't means tested

Uk also has other benefits - NHS for one, free at point of use. Makes healthcare when elderly much more within reach of those of us who will be skint.
I couldn't afford to ever retire if I stay here. If I go home at least I get a state pension and medical care.

the troubadour

UK better for those with little to be sure. Although like Australia if you need nursing help care in the age and without personal funding, I have heard poor reports. But that is an issue everywhere.


Although Australia has some 2.5 trillion dollars in superannuation it will become increasingly hard with casual and part time work in the gig economy to rely on super in Australia for many millions which means retirement may never happen as the system was based on a time when most had full time work .


Not only do you have to be in Australia when claiming Aged Pension, from memory you need to be here two years in the country before applying.
They have made it difficult to live in a cheaper Asian country as well, with requirements as to time out of country a consideration for continual payment.

ozzieeagle

That's changed from previously AFAIK, Now you can receive your indexed linked Aus pension for as long as you like (2 years??) in any Asian country.


Thing to watch there is Healthcare of course.

When it comes to health care, I'll keep up our private hospital cover when I retire. That is purely and simply for one thing, No queues. That costs the wife and I circa 318 bucks per month at present with HCF. A bit steep, but worth it IMO. Could actually be cheaper overseas, hadn't thought of that before.

Here's the receiving pension outside Australia rates...... This is with countries that don't have a reciprocal agreement. Like the SE Asian Countries. From my reading you can live outside Aus for 2 years and not get cut..... but then you have to stay back in Aus for 2 years before you go again.


https://www.humanservices.gov.au/ind...side-australia


Looks like it could be more than 2 years actually.

ozzieeagle

In relation to that income threashold, the wife an I have both agreed we'll probably try and get casual work upto the limit or thereabouts after retirement age. Just to keep ourselves active and give ourselves as much disposable income as possible.

the troubadour

It appears complicated and this being Australia rules change with regularity. I haven't read your attachment yet, but shall do so, which would be great news for numerous Aussies and migrants with long Aussie work associations, that I've happened across in various Asian countries, many waiting until pension age to return to collect a pension and straight back.


As I don't expect to ever get an Aussie pension, unless some creative ways to qualify are found, I haven't been keeping up with the latest.
The last I heard was this government was making it even harder by bringing in a six week stay abroad allowed. I know the rate is reduced for Asian countries as cheaper costs of living, but if that six week period only, is no longer going to be an issue, I am very glad.
You would think the government would be content to pay out meagre pensions to their citizens moving to Asia with the savings in health costs and the like.


I would probably consider a country like Malaysia, with great health care, much cheaper to be privately insured as well (although again must check latest costs) Being a country I know/knew well through past living in I would have little hesitation with using their private hospitals. People tell me Thailand has excellent services as well, and they certainly got an Aussie friend back on her feet, after a very serious motor cycle accident in Cambodia.


Actually off to East Malaysia in a few months to check out Sarawak as a possible later location.
For someone supporting themselves on a superannuation and other means, a country like Malaysia, at half the cost or less than Australia, makes a lot of good sense.

ozzieeagle

Even my accountant thought that until I linked him the government website. I looked into it because I heard of a couple with fewer means than myself retiring to Bali and I wondered how they could do it. Research showed me that the pension is indeed paid for quite a long time if not permanently.

Amazulu

You would get medical care here too

Both health systems are excellent - especially as they are essentially free at point of use

sign

Reading up today. I'm 18 years short on NI payments. I go at 67.

But even if I retired today, and still 18 years short on NI payments.

They would top me up to £159.35 a week as this is the minimum payment threshold. You can own a house, pay no council tax and have up to £10k in the bank. I have no private pension and no super so I would qualify. Better than a kick in the goolies.

Saying that if I work every year then I will make at least 16 years of NI payments before 67.

If I moved back to Oz at 62. I'd get full state pension at 67.

But I bet the world will be a different place in 16 years time.

If the man with the nylon swede has his way hey...