kris maynard

Hi

Can someone please explain in plain English the ozzy pension system please.

I have searched and read through some threads but to be honest find it all a bit confusing!! (dont take much)

From what I gather if you are a PR you are entitled to a state pension after 10 years!! Is this similar to the UK where you or your employer pays into it.

Hubby is self employed so pays his separatley obviously not sure if he will be self employed or not once we arrive hopefully in June.

Basically just want to know that when we retire we will be entitled to some sort of pension other than the private ones!!

Hope that makes sense!!
PS im also not asking for handouts

Cheers Kris xx

jonjon

would also be intrested to know

FRAYNE

cant help but i would also like to know my hubby is 55 and we hope to go in August he will be 56 then so will only have 9 years left to work does this mean he will not be able to get any kind of pension sorry to hijack your thread
Janet

kris maynard

No Probs somebody must know!!

kris xx

Jonahs_mummy

found this

does this help?
http://www.centrelink.gov.au/internet/internet.nsf/overseas/pension_agreements.htm
or this? http://www.centrelink.gov.au/interne...e/pe0509en.pdf

FRAYNE

Thanks for the links
Janet

Bordy

Wait until ABCDiamond gets up. Thats his task for the day, to explain it all to you.

kris maynard

Cheers for those will attempt to check em out!!

Your right Bordy I think this is a job for Super ABCDIAMOND
I need terms that a dim Essex girl like me can understand
Cheers
Kris xx

debbiemc

and me

Wol

My understanding is that the Australian pension is totally unlike the UK one. You are not entitled to a pension - even as a citizen - unless your income in retirement is below a certain figure. IOW it's means-tested: a longstop backup and not meant as an income to comfortably live off.

I stand as always to be corrected!

ABCDiamond

Retirement & Superannuation

http://www.britzinoz.com/info/retire.htm

A good website to view is http://www.seniors.gov.au/ where I found this quote:

There is no statutory retirement age in Australia. Currently, very few Australians over 50 wait until qualifying for the Age Pension before retiring. A recent Australian Bureau of Statistics (ABS) survey found that around 76% of men had retired before 63 and 76% of women had retired before the age of 60.

Pensions/Superannuation

Most Australian workers will be building their own superannuation up from the Compulsory Super Payments that their employers are making on their behalf. This is currently at the rate of 9% on top of the persons Salary, as long as they earn more than $450 a month. When being given a salary package figure, ask if the 9% super is on top of the total figure given, as some employers may include it in that figure.

Some info from one if the Trade Unions; the ACTU stated in 2004: "Today almost 90% of workers are members of super funds". I did feel that 90% was a high figure, as many people work part time, and I would have thought that more than 10% earned under the $450pm. However, with that figure coming from the Australian Council of Trade Unions, I can't imagine it being overstated.

Some fact sheets are available from Choice.com.au which are worth reviewing.

A Government website for superannuation is Superchoice.gov.au and Superannuation - The Big Picture



When do you qualify for the Government funded Age Pension ?

Men qualify for an Age Pension at 65 years or over, Women 1 January 1949 and later also at 65, but can reduce down to 60 if older.



What Residence Requirements does the Government Age Pension have?
To lodge a claim and qualify for Age Pension, you must be:

in Australia on the day you lodge your claim,
an Australian resident,
have lived in Australia for long enough to satisfy qualifying residence periods (normally TEN years). Note: there are some exemptions.
Have Income below the threshold. Under the Income Test, a single person earning less than less than $124 per fortnight may be entitled to the FULL pension which reduces to NIL when they reach $1360.75 per fortnight. (Nov 2005 figures).
Have Assets below the threshold. Under the Assets test, if a homeowner has more than $322,000 in assets, as well as their home, they will not be entitled to any of the Government pension, but could be entitled to the full pension even with up to $157,000 in other assets.
These figures valid at Nov 2005. Full Information from Centrelink

Current Government pension payments are: $488.90 per fortnight for a single person, or $408.20 each for a couple, PLUS the following additional payments and benefits that people may be entitled to:

Pharmaceutical Allowance may be payable.
Rent Assistance may be payable.
Telephone Allowance may be payable.
Utilities Allowance may be payable.
Remote Area Allowance may be payable.
A $500 Advance Payment of Age Pension may be available.
You may also be eligible for a Pension Concession Card .


Hope that helps, but if not, I will endeavour to re-word it

ABCDiamond

After a request for further clarification/comparison...

In the UK, everyone gets the Aged pension entitlement.
In the UK, the employer has to pay 12.8% of each persons wage into the NI scheme. (I don't know how much actually goes towards pensions)


In Australia, the Aged pension is only for those who NEED it.
In Australia, the employer has to pay 9% of each persons wage into a personal private pension scheme in the employees name.

The UK system puts it all into one big pot, and everyone gets an equal share.
The Australian system puts it into your own individual pot, so you get what you have earned.

In the UK, many people also put more of their OWN money into a private fund, to top up the basic Aged Pension.
In Australia we can do that too, if we wish, and many do, however, the higher paid may not need to, as they already build up a reasonable personal pot of their own via the employer payments.

ozzieeagle

On top of the private pension that i have received details about, from my old employer in the UK, am i also entitled to 10 years worth of uk government pension. ? Probably makes no difference because it will just lower the Government portion of my Aussie one, is that correct ??


Sorry thinking on my feet here, also for the benefit of the other people reading this, the aim in Australia, is to have enough private pension as to "NOT" qualify for the government pension, as you will obviously have more than 1360 dollars per Fortnight income at that stage. (I assume thats non taxed take home income ?)

So what about my english pension, can i keep that in England, and go over and get it at holiday times ??

ABCDiamond

Yes
Yes

That is the Australian aim, and Normally GROSS income is considered.

Well... Yes, but after the ATO and Centrelink have looked at it

ozzieeagle

Baaarrrrssssttttaaaarrrrrrddddddsssss !!!!! I should have realised that. LOL


Anyone know how to avoid ATO and C'tlink Looking at this.

It wouldn't come up on their Data bases surely ?