mary1967

We're due to flight to Perth on the 22nd October and had planned to transfer our pensions over within the first 6 months. I'm not really that knowledgeable on tax issues etc, but going off the current world economy and the state of index linked pensions at the moment, we're seriously considering just leaving them in the UK and maybe transferring them over in a few years time.

Anyone got any thoughts on this?

quoll

Yup, get financial advice. If you have an index linked pension, I think I would be leaving it where it is - I think most Aussie ones these days are allocated pensions with just a few gold plated indexed ones for old public servants. I am not sure about the industry funds. You cant bring your govt pension over at all, just your private ones and there are tax implications if you roll them over after you have been here for more than 12 months I believe, hence the need to get good independent financial advice. Edited to add that remember if you decide to leave Aus for any reason once you are a permanent resident, you dont have the option of rolling it back into a UK pension account - it has to stay here until you reach retirement age.

mary1967

Thanks for that quoll, i think for the short term we'll be leaving them where they are and then taking some financial advise for the long term.

donna

I brought my gov pension over no probs
donna

quoll

Your NI one? Sorry that is what I meant by government - the old age pension contributions. You cant roll them into an Aus super fund but you can receive your pension once you reach retirement age here but it wont be indexed, just frozen at the rate you start it on. Other pension funds can be rolled over into an Aus fund

mary1967

That was my understanding as well - you've just got to let the Pension Department know your new address and then they send the paperwork to you a few months before you retire.

Not sure yet whether we'll continue to pay voluntary NI contributions - i've sent off for a pension and NI forecast, just waiting for it to arrive.

Rideaway

I've been told that it is best to leave 'final salary pensions' where they are (otherwise you lose loads), it is only private pensions you need to consider transferring.
I have only spoken to an IFA (one who advertises on this site) and not paid for any service.

mary1967

I think i've got a final salary pension, i'm a civil servant, well, i will be until tomorrow I'll ring them up today and get it clarified and if it is, i'll probably leave it where it is. My OH's pension is private - it had lost 10K in 8 months the last time we checked 4 weeks ago, god knows what it's lost now

Rideaway

I would get this clarified by some-one else. Nearer the time that's what I'll doing

EvannTel

Not true

I have a defined benefit pension and advice was to leave in UK. Nephew just immigrated and had 2 such pensions and advised to move both.
Depends on age of person, value of fund, index linking etc etc

Only specialsied financial advice will give you an answer - and even then assumptions have to be made.

BATS666

I'd agree with most of this except you CAN transfer a Civil Service pension to Oz. The transfer value goes into a private pension in Oz and you lose the index linking. I've decided to leave it where it is (UK) as an index linked pension is too valuable to give up. I sought independent advice but managed to come to this conclusion without having to pay anyone for the advice. Private pensions are a different matter.

EvannTel

But remember index linking "could" be easily offset by the income tax you will pay here.
Remember super paid in Aus is tax free, pensions drawn from UK funds of any type are taxable.
This is just one of the variables that must taken into account when deciding whether to move or not.

BATS666

I reckon that 35 years of income from an index linked final salary pension is better than a tax free Oz pension where none of the income is guaranteed. Yes, it's open to the vaguaries of the exchange rate but it's not open to the vaguaries of the stock market. In today's climate that's worth alot. I'd rather pay the tax on a guaranteed income than watch my pension pot go down the pan with all the other equities, commodities etc.....
It's a judgment call, but I think I made the right decision.

EvannTel

Yep, well if you plan to live to 90 or so then you may well be right. 35 years post retirement is above average mind you - and again another of the variables that have to factored in.
The flip side of course is if you are still some years away from retirement then the stock market will recover. I'd bet my pension on it

BATS666

I took early retirement, so I'm drawing my pension at 50. 35 years seems a pretty good bet...... barring funnelwebs, great whites and death adders of course !!