Long term security in Australia?
 

Hi, hubby has been offered a transfer to Perth and is really excited but I on the other hand am really sceptical.

I worry about prices there compared to here in the UK - we are financially very secure in UK and don't have any financial worries whatsoever whereas from doing research we'd be ok in Perth but would have to watch the pennies (sorry cents). My 2 sisters live in perth so we have pretty accurate estimates of costings.

My one niggle is long term security..... what does everyone propose to do when they retired - are the "state pension/superannuation" payments enought to live off comfortably and still pay private medical, dental, opticians and ambulance cover? plus still be able to enjoy life and pay your regular bills and transport.

Dont want to go over there and enjoy our 40's and 50's only to really struggle in our retirement and moving back to the uk when we're older will be so much harder as we have no family here.

What are everyones thoughts on affording their retirment in oz?

Re: Long term security in Australia?
 

Too scary to think about, but suppose we must at some point:o.

Re: Long term security in Australia?
 

To be honest I don't expect to be able to retire. Certainly couldn't envisage being able to give up work until long after "normal" retirement age.

Re: Long term security in Australia?
 

I'm selling up and moving to a yurt in Nimbin.

Tomorrow, if practically possible.

Re: Long term security in Australia?
 

>>My one niggle is long term security..... what does everyone propose to do when they retired - are the "state pension/superannuation" payments enought to live off comfortably and still pay private medical, dental, opticians and ambulance cover? plus still be able to enjoy life and pay your regular bills and transport.<<

It obviously depends on what standard of living one's used to or expects. But the state pension is means tested, and if you have more income than a fairly small amount it won't help much. If you relied on it alone you would be, like many people here, on a subsistence income.

What you put into Super has tax advantages - but retrospective legislation is not a big taboo in Australia, and we are keeping our fingers crossed on that one, having made long-term plans which could be disastrous if they change the rules (again).

Re: Long term security in Australia?
 

You're right Wol, the Aussie government is itching to get its sweaty hands on the huge amounts of money tied up in super. I see no reason why they won't try to steal it.

Re: Long term security in Australia?
 

I wouldnt think there would be too many people beginning with super now who are going to be living the life of Riley in their old age. But, as the others have said, centrelink age benefits are means tested and you would definitely not be living in clover if you were eligible to receive them. They used to reckon that you needed to put a good 25 years into super but even at the base amount that wont give you very much in today's climate. The days of the gold plated super schemes are pretty much over and the others are right too, the government would love to get its sweaty mitts on your super stash! If you do come, then expect to contribute far more than the base rate.

Re: Long term security in Australia?
 

In short. No.

If Australia doesn't get it's act together, it will be the trailer trash of the Pacific and eveyone with an IQ greater than 110 will have moved to Singapore.

Re: Long term security in Australia?
 

LOL, that must be why I came this way!

Singapore is VERY expensive to live these days - we're spending a lot less here. And the number of old people wiping tables in McDonalds and driving taxis would imply they haven't got retirement sussed either.

Re: Long term security in Australia?
 

Are you living in one of the major cities?

Re: Long term security in Australia?
 

So is Australia and you will pay a hell of a lot more tax in Australia as well.

Re: Long term security in Australia?
 

Yes. What we're saving on school fees covers the extra tax. And we're saving loads on other stuff too e.g. food about 1/2 price, car about 1/3.

Singapore USED to be quite cheap, but not these days.

Re: Long term security in Australia?
 

Not great by many standards in Australia. I will be far poorer here than if i had continued to work in Europe,something that i failed to give adequate thought to sixteen years plus back.
Too late to catch up on lost payments now even if was to return. Poured quite a bit extra into Aussie super over the years, but again has perforned well below expectations being focused on the market.

The actual Age Pension is not something one would by choice wish to be reliant on in old age which could well be drab enough here let alone being poor on top of it.

Some folk bail out to cheaper options if self funded,to places like Bali or Malaysia,for example.

Re: Long term security in Australia?
 

Just wait until this carbon tax is introduced...

Re: Long term security in Australia?
 

We were quite comfortable in the UK, Good wage,small mortgage but every year seemed to get a little harder. And we needed to move from an area we saw as going down hill. I`m 45 now So it was a difficult descision with two young boys 10 & 7 years old. Plus I was going to find a job when I arrived. Just as the ressesion started to hit( Dec`08). Took 6 months to find a job( bit scary).But My wife and I have very few regrets. And I think a pension over here will grow far better than one in the UK. I don`t think I have been happier which does alot for your health aswell.

Re: Long term security in Australia?
 

Singapore is a nice place to vist but no way would I want to live there. Australia has a much better lifestyle for a western family

Re: Long term security in Australia?
 

There are issues in both countries but I reckon that Australia will be a better place financially to retire. The superannuation system is fairly robust here and there are good tax break involved (although future governments might change this). In the UK, the private pension system is in a mess, the government cannot afford it's pension liabilities, and I reckon that in 20-30 years time, the state pension will not be available for a lot of people. The NHS will be a very different animal by then too ie having to pay for some stuff

Re: Long term security in Australia?
 

Putting aside the usual gripes and whinges, and biases, it seems to me that in many First World countries you have to look beyond what the state sets out as default.

So personal investment is the way forward.

Like Polly, I don't expect to be able to retire at the state age - whatever it will be then. This is because, despite the fact we have a good income and few liabilities that not much is going on investment. What we have done well in is not burdening ourselves with a huge mortgage debt on our primary place of residence.

That will be sorted out in the next 10 years and in place when I still have 20 years to run.

Re: Long term security in Australia?
 

Most people I worked with in the Oil & Gas industry in the UK had self funded private pensions or nothing some lucky buggers had final salary deals but they are thin on the ground now. At least with Super in Oz you are forced into doing something as its compulsory but I agree its far from perfect. Still plently people in the UK in their early 50s are just going to sell their 500K house and downsize as you can't lose with property and pensions are a waste of money ;)

Re: Long term security in Australia?
 

Me neither.But Malaysia is another story.Actually a pretty decent life style for a Western family.

Malaysia in the eighties was voted one of the favoured countries for relocation by expats.

Since then it has moved on to become a retirement country of increasing appeal for foriegners,providing a substantially cheaper option and more for your buck than can be had in Australia for a foreign retiree.

Re: Long term security in Australia?
 

Still the superannuation system here is reliant on the market and not guarantied as in France and Germany,where at least for now it is rather simple to work out when one can retire and on what salary.

Re: Long term security in Australia?
 

This probably sounds a bit dire, but if you are thinking about the "long term", then how certain are you that you will be financially secure in the UK?

If you mean, financially secure purely as a result of your own funds - great.

But if you mean, financially secure with the help of expected pension payments, discounts, free NHS treatment, etc etc... Then it might be worth thinking about whether or not you will actually receive the benefits you are expecting, by the time retirement comes around. Sorry to be such a doom and gloom merchant.

Re: Long term security in Australia?
 

Live fast, die young :thumbsup:

I've always lived on a short term gratification basis, lifes short, may as well enjoy yourself and do what you wanna do. If you want to come to Australia, then give it a shot. In my opinion its better to regret what you do than what you had the chance to but didn't.

I don't even have a pension but its alright as I plan to win the lotto shortly before I retire.

Re: Long term security in Australia?
 

My philosophy exactly.But as we get older,i do believe we do change a little in looking a little harder at how we are going to make out in later years,when we are less desirable and less able to influence what is happening around us.

Re: Long term security in Australia?
 

The major European countries (excluding the UK) have a major future pension storm brewing. As few people in these countries have private pensions, most are relying on the state to provide for them in retirement. Thing is, as they have aging populations that are growing, the pension pot is being spent now and is not going to provide for future generations - although they are paying into it.

It's going to get messy

Re: Long term security in Australia?
 

I like Malaysia a lot but it is a very different place to Australia

Re: Long term security in Australia?
 

Different but a very good life can be had. Lived there in the early eighties and in those days there was still very much a very positive hangover from the British times still very visible.
Lot of folk in Melaka and Penang spoke English as their mother tongue and were very welcoming.
International schools there were of a very high standard. These days owing to the ease it is becoming a rather popular retirement country with numerous benefits. From age 50. All so possible to do business.
Not a country for all as i mentioned. The humidity for one would not suite a lot of folk.....but as i understand Health these days is of a very high quality and Health Tourism is a feature now there as it is in Thailand and China.

Re: Long term security in Australia?
 

In my personal opinion, the comprehensive retirement and robust NHS system of UK, similar systems in Europe and similar systems in Canada are extremely secure, until next 50-90 years further. I dont see that anything will be changing, the current generous free handsout system working in UK,Canada and Europe for many more years.

Re: Long term security in Australia?
 

You haven't been reading about the pension cutbacks and changes to the indexing in the UK this last few weeks then?

Re: Long term security in Australia?
 

Nothing finalized so far, rumours like these are specially promoted to make news and media more special. Pension cutbacks in UK or any changes to free handouts or Maternity or Patenity payments or free prescription medicines after pregnancy schemes are going to take very very long time to dissolve. The mindset of local public in UK is already well developed to receive free handouts (easy money) its not easy for government to suddenly or anytime near future to stop such schemes.

Re: Long term security in Australia?
 

Sarcasm?

Re: Long term security in Australia?
 

And that is exactly why they will need to make the changes gradually, over the next 10 or 15 years. :(

Re: Long term security in Australia?
 

Are you actually from the UK, wouldn't think so by the way you construct your sentences.

anyway.........

The UK Govt have already changed the way pensions are linked from RPI to CPI, immediately knocking 1-2% growth off them every year. They have also increased the pension age and will continue to do so. These problems are only going to be exacerbated by the millions of baby boomers due to retire in the next decade, all expecting a pension from the state and many expecting a final salary pension from their company, none of which in reality can be afforded. The Govt either needs to pay them less or tax the people still working more. Now consider what % of over 60's vote and what % of under 25's vote, then consider what age the MP's and most people in power are.

Far easier to shaft the young, which they ARE doing.

I've worked in the rail industry for 16 years, in that time I've seen many, many old guys who had no qualifications and who weren't that bright, but did just enough to hold down a job for 40 years, retire with a 2/3rd final salary, a house worth 200k+ that they bought for 5k and even a few with holiday homes in Florida.

Now consider what % of current 18 year olds with no qualifications will manage that?

Not sure about long term security in Australia, but there's certainly none in the UK hence why I moved my family across.

Re: Long term security in Australia?
 

:thumbup: Got it in one :thumbsup:

Re: Long term security in Australia?
 

I can certainly confirm that Penang has a very high number of Australian retirees - most seem to spend some time in Penang and some time back in their homeland. There's a good retirement visa MM2H but, quite honestly, you don't even need that if you're heading back to Australia now and again.

Re: Long term security in Australia?
 

Bit one-sided don't you think? RPI includes mortgage interest, something which most pensioners don't have to worry about, so why should it be taken into account in deciding by how much their pensions need to rise to maintain living standards? Also CPI has been greater than RPI for approx half of the last two years, so it's hardly a given that RPI will always exceed CPI.

Also, the UK government are proposing to increase the basic state pension from c£100 to £140 per week.

Re: Long term security in Australia?
 

Am I the only one to spot the cons here? Although the state pension is c£100, the minimum pension guarantee is something like £132. The difference being means tested. So not a huge jump there. Secondly the those that would have received more under SERPS or S2P will lose the extra money that these provided.

Re: Long term security in Australia?
 

Just out of curiosity...... what do you plan to retire on if you stay in UK? Are the state pensions there enough for you to retire on?

I'm Australian but my MIL is british and at age 74 is struggling to survive on her state pension plus a widows pension from her husband who was an architect and she has a part time job as well. We send her money each month so she doesnt have to wait xx months for NHS medical / dental treatment and can afford opticians fees etc. My experience is that pensioners dont have it easy in the UK.

Re: Long term security in Australia?
 

Some do some don't.

My sister and her husband are here at the moment......they have been in NZ for a month and will be in Australia for another few weeks......they just returned from a 7 week cruise a few days before they came over.

My BIL and wife have just had a 6 week trip to Australia.

My FIL is on holiday in Spain at the moment.....one of several holidays he will have this year.

Many Australian pensioners don't have it easy.....not without a private income.

Re: Long term security in Australia?
 

It appears that the perks may no longer exist so in fact most will be worse off. Hence if the new rate is to be GBP 150,am i right in thinking that will be the full entitlement?