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British Age Pension

British Age Pension

Old Jan 4th 2008, 9:30 am
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Default British Age Pension

Hello everyone,
I wonder if anyone can help. I have lived in Australia since 1984 and will qualify for the old age pension in ten years. I also have the opportunity to contribute National Insurance payments to qualify for a full (if frozen) British State Pension. Can anyone tell me if this is worth doing, in regards to tax problems, losing the Australian pension and so on? I would appreciate any help or advice.
Regards,
Phil
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Old Jan 4th 2008, 9:45 pm
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Default Re: British Age Pension

Originally Posted by Phil Martin View Post
Hello everyone,
I wonder if anyone can help. I have lived in Australia since 1984 and will qualify for the old age pension in ten years. I also have the opportunity to contribute National Insurance payments to qualify for a full (if frozen) British State Pension. Can anyone tell me if this is worth doing, in regards to tax problems, losing the Australian pension and so on? I would appreciate any help or advice.
Regards,
Phil
My advice would be to ask the ATO, as they are in the best to answer your question. www.ato.gov.au
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Old Jan 5th 2008, 12:15 am
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Default Re: British Age Pension

Originally Posted by Phil Martin View Post
Hello everyone,
I wonder if anyone can help. I have lived in Australia since 1984 and will qualify for the old age pension in ten years. I also have the opportunity to contribute National Insurance payments to qualify for a full (if frozen) British State Pension. Can anyone tell me if this is worth doing, in regards to tax problems, losing the Australian pension and so on? I would appreciate any help or advice.
Regards,
Phil
You have to pay tax on income regardless, I would have thought.

The Australian age pension is means-tested - contact Centrelink. The Australia/UK social security agreement was terminated in 2001 but may still cover you if you migrated to Australia before then.
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Old Jan 5th 2008, 9:10 am
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Default Re: British Age Pension

Originally Posted by Phil Martin View Post
Hello everyone,
I wonder if anyone can help. I have lived in Australia since 1984 and will qualify for the old age pension in ten years. I also have the opportunity to contribute National Insurance payments to qualify for a full (if frozen) British State Pension. Can anyone tell me if this is worth doing, in regards to tax problems, losing the Australian pension and so on? I would appreciate any help or advice.
Regards,
Phil
Try looking at this link http://www.thepensionservice.gov.uk/

You can pay class 2 voluntary contributions and the number of contribution years has been reduced to 30 but the retirement age has been increased. you should be able to find all the info you need and ask for a pension prediction from the above site.

Gillian
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Old Jan 5th 2008, 9:25 am
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Default Re: British Age Pension

I don't think they are doing pension forecasts at the moment unless you are within a couple of years of retirement.

I don't think anyone can really give advice on this with any degree of certainty because the rules may well have changed yet again in another 10 years time. I wish I knew the answer too!
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Old Jan 5th 2008, 11:03 am
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Default Re: British Age Pension

I think you can only make catch-up payments for the last 6 years.
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Old Jan 5th 2008, 11:03 am
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Default Re: British Age Pension

Originally Posted by JAJ View Post
You have to pay tax on income regardless, I would have thought.

The Australian age pension is means-tested - contact Centrelink. The Australia/UK social security agreement was terminated in 2001 but may still cover you if you migrated to Australia before then.
Also as mentioned any UK contribution would be offset agains ozzie pension so you probably wouldnt be any better off. No expert though.

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Old Jan 5th 2008, 1:57 pm
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Default Re: British Age Pension

Originally Posted by joho View Post
Also as mentioned any UK contribution would be offset agains ozzie pension so you probably wouldnt be any better off.
Wouldn't that depend upon whether the OP got an Oz pension in any case? If it's means tested, he may not qualify anyway, in which case the UK pension would be extra income.
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Old Jan 5th 2008, 10:25 pm
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Default Re: British Age Pension

Originally Posted by louie View Post
Wouldn't that depend upon whether the OP got an Oz pension in any case? If it's means tested, he may not qualify anyway, in which case the UK pension would be extra income.
His initial post indicates that he will get the Australian pension and he is quering wether or not he would lose it.

Its better to keep the Oz one cause the benefits you get from having it even if its only $1, my old neighbour says that they stay slightly below the threshold on purpose to get the benefits that go with it.

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Old Jan 6th 2008, 7:02 am
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Default Re: British Age Pension

Originally Posted by louie View Post
I don't think they are doing pension forecasts at the moment unless you are within a couple of years of retirement.

I don't think anyone can really give advice on this with any degree of certainty because the rules may well have changed yet again in another 10 years time. I wish I knew the answer too!


They can give you a forecast on the payments that have been made only. I think there has been a hold on predictions due to the fact that the number of qualifying years was changed only last June/July.

We have had about 4 predictions at various times. They will then tell you what you would need to pay to receive a full pension. If you originally paid into SERPS that is additional on top of your pension.

Last edited by ray2gill; Jan 6th 2008 at 7:07 am.
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Old Jan 6th 2008, 7:03 am
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Default Re: British Age Pension

Originally Posted by lesleys View Post
I think you can only make catch-up payments for the last 6 years.
That's private/personal pensions.
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Old Jan 6th 2008, 10:49 am
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Default Re: British Age Pension

Originally Posted by ray2gill View Post
That's private/personal pensions.
No.

http://www.hmrc.gov.uk/nic/class3.htm#short

Also - a lot now depends on when you reach retirement age (before or after April 2010) so make sure you read the right rules.
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Old Jan 6th 2008, 11:42 am
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Default Re: British Age Pension

Originally Posted by joho View Post
His initial post indicates that he will get the Australian pension and he is quering wether or not he would lose it.
Whoops, must learn to read
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Old Jan 6th 2008, 11:45 am
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Default Re: British Age Pension

Originally Posted by ray2gill View Post
That's private/personal pensions.
No, that rule (which was that you could pay a % of your greatest income in the last 6 years) changed wef 6 April 2006. You can now pay UK pension contributions up to the lower of your UK earned income and (for 2007/08) £225k each year.
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Old Mar 17th 2008, 4:28 am
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Red face Re: British Age Pension

Worth joining British Australian Pensioner Association. Go to:

http://www.britishpensions.org.au/

Very knowledgeable and helpful, and working in consortium with groups in Canada and South Africa to change this anomaly for pensioners in (mostly) Commonwealth countries.
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