peternash

Hi, I have been living in Australia since June 07 as a temporary resident, will be applying for PR next year. I have an NHS pension with about 8 years contributions left back in the UK, haven't made any contributions for about 10 years.

I have been looking into transferring it over but have been getting conflicting advice, the process seems like a bloody nightmare.

Want to know if anyone has had experience with the process and what the general consensus of opinion is, leave it where it is or transfer it?

Any advice greatly appreciated!

Peter

ABCDiamond

Only private pensions can be transferred, not the Government age pension.

peternash

I know I can transfer it, just not sure if I should. Have looked at other threads and there seems to be a lot of conflicting info out there. Apparently I would need to transfer within 6 months of getting PR in Australia if I am to avoid a large tax bill.

Wondering if anyone has gone through the process and what advice they received and what they decided upon as the right course of action?

woodiesinaus

Leave it there. That is what I was told by a Centrelink pension chap as it's a defined benefits pension and so it doesn't stop paying out until you pop your clogs. Unlike a private pension that gives you a set amount to last you until you get to see The Man upstairs.

garyp

I was told to leave it there as its a final salary pension and you will lose out

Eastend Girl

This is correct - you CANNOT transfer your government pension - you can't apply for it until you are retirement age - all you can do is get a forecast how much you are likely to get when the time comes

peternash

So am I correct in assuming that as a final salary pension it will average my highest earnings in the last 3 years I was working for the NHS?

I stopped making payments into my NHS pension in 1998, I have 24 years until I reach retirement age so by then my final salary won't amount to much, have I got my thinking correct on this?

Sammy T

But the OP is referring to his NHS Pension or superannuation scheme, not the government pension.

The advice I was given re my NHS Pension was to leave it in UK, I have over 20 years of contributions, although my final 3 years were only casual work, so it won't come to much unless I add to it at some point. If and when we returned to the UK, I will add to it and hopefully work more hours so it will be a better prospect when the time comes.

Get some further specialist advice if you are really not sure.

Sam

FHI

The NHS scheme has different classes of benefits but for most people their pension will be based on the best salary of thelr last 3 years of pensionable pay. To make sure you don't lose out too much this will be indexed by inflation until your retirement age.

Without carrying out a proper analysis you cannot determine whether you are better or worse off in transferring your pension benefits to Australia. There are many factors to take into account e.g. number of years to retirement, need to control the pension benefits that will be paid on your death, risk profile of the person making the transfer, whether you want to access all the funds as a lump sum or take it as apension, etc.

Frank

Scotty1

I have just looked at this for my own public sector pension which you can transfer (not the same as the universal old age pension which you can still receive)
I paid for advice as I have lots of years contributions and an excellent scheme. Each case is individual and you really need to take specialist advice but the sort of things I looked at were
Currency - if I kept my pension in uk and lived in Oz I was at mercy of currency fluctuations in my old age
Flexibility - you have much more flex in Oz to do what you want with your pension pot, including taking it as a lump sum if you want and investing in in what you want (within rules)
Tax- you do not pay tax on pension income if your pension pot is in Oz. If its in uk you pay oz income tax
Against transfering are problems if you return to uk - you can't move your pension back again; investment risk is now yours rather than pension fund;

Really suggest you get your own advice and then think about what to do. I was pretty sure I would not transfer until I realised that both my lump sum and annual pension would be taxed in Oz.
I got advice from Prism expat and have so far found them good - they are not cheap but will give you an initial consulation for £75 I think

scotty

FHI

If you are looking for expert advice, make sure that you ask if your adviser is a qualified member of the Pensions Management Institute in the UK. The Pensions Management Institute (PMI) qualifications ensure that your adviser has full knowledge of what your UK benefits are and can reasonably compare them to Australian superannuation rules, benefits, etc.

peternash

Thanks Scotty, that is helpful advice. Will look into engaging the services of someone who can walk me through the process, seems like there are many things to consider.

Much appreciated.

LouB

Scottys advice is good and reflects my experience. I have 22 years NHS service with superan payments and thought I would leave it. Now transferring after consultation with specialist advisors.
Good luck!

ezzie

How can pensions in the UK be taxed in Australia? How do they even know about them....gypsies with crystal balls, sniffer dogs or is big brother watching us?

iamthecreaturefromuranus

Given the current exchange rate isn't moving your pension at the moment a bad idea?