Final salary pension
Apr 8th 2009, 9:10 am
#31
BE Enthusiast
Joined: Apr 2007
Posts: 623
Re: Final salary pension
Further to the discussion on exchange rates, before our daughter emigrated to Australia we had been thinkin og retiring to Spain. However, when you look at pensioners who are already in Spain and having their pensions transferred they are now struggling to survive as they have seen their pension eroded by the exchange rate.
Apr 8th 2009, 9:23 am
#32
da Bonehead
Joined: Jan 2004
Location: Lion in da jungle
Posts: 22,767
Re: Final salary pension
It is a point that I feel has been taken relatively lightly in this thread.
If you have a bankroll and/or a good sized pension I guess the swings and roundabouts of forex rates won't matter to you too much.
However if you are purely reliant on a not so large weekly pension then the budgetting is going to much more complex.
From week to week you are not going to know how many dollars you will receive and all your expenditure will be in dollars.
If you have a bankroll and/or a good sized pension I guess the swings and roundabouts of forex rates won't matter to you too much.
However if you are purely reliant on a not so large weekly pension then the budgetting is going to much more complex.
From week to week you are not going to know how many dollars you will receive and all your expenditure will be in dollars.
Apr 8th 2009, 9:43 am
#33
Lost in BE Cyberspace
Joined: Mar 2003
Posts: 9,397
Re: Final salary pension
Final salary pensions are only index linked if they are from a "government" (using that term losely) organisation such as, for example, the old NHS pension, teachers pension etc. If you are a member of one of those you are a very lucky person indeed. And I agree it is most likely that you will be much better off by keeping it where it is.
Final salary pensions from companies are not index linked. And it is not at all certain that you should leave it where it is. You'll need to consider how near/far you are from retirement, the likelyhood of the company staying in business and keeping the scheme going till you retire (if they don't you may not get all that's due to you), what benefits your spouse will get if you die before retirement, what happens if you want to take a tax-free lump sum on retirement (will be taxed in Oz) etc etc.
Final salary pensions from companies are not index linked. And it is not at all certain that you should leave it where it is. You'll need to consider how near/far you are from retirement, the likelyhood of the company staying in business and keeping the scheme going till you retire (if they don't you may not get all that's due to you), what benefits your spouse will get if you die before retirement, what happens if you want to take a tax-free lump sum on retirement (will be taxed in Oz) etc etc.
