CasG

I've been here for just over two years, and will be going for Citizenship in August (due to a few months on a temp 457 visa)

I have an NHS pension frozen in England, and was wondering whether to leave it there, or transfer it over to my Super here - any thoughts would be appreciated
Thanks, Cas

woodiesinaus

As its a final Salary scheme ( I would think ) leave it there. The pot of money that you would have to live off until you died would never empty, unlike the lump sum that a Superfund has.

CasG

Yes it is a FSS.

Thanks, and welcome to the forum

Grayling

Leave it where it is....the NHS pension is one of the best investments you will ever find.

G

IRBaboon

I've been wondering about the same thing. In July the tax laws are changing in Oz and I believe this will then affect pensions held in Britain also i.e. they will tax income from foreign pension funds. Not sure if this affects NHS pensions???

Issie

So what happening when your due to be paid out G..........Would it be our responsibilty to contact them, and then how easy would it be to get paid out with it being froze for so long?

Grayling

Income from pension funds is already taxed in Australia

You are taxed on your worldwide income regardless of source so what changes?

G

Grayling

'Ey up Issie

I presume you would need to contact them....but you should keep them informed of your address anyway.

It will then be paid regardless of where you happen to live.

Remember it is index linked.....not to be sniffed at.

G

IRBaboon

Not according to this article:

http://www.byebyeblighty.com/1/pensi...-to-australia/

Apparently if we transfer the pension before July it can be taken tax free on retirement, if not it gets taxed.

CasG

So, what should I do with my NHS pension, if it is such a good investment as G says??

Issie

Thanks G

Hope your well hun

Bordy

We spoke to AMP pensions a few years ago here in Aus & even they said leave it in UK.

Grayling

You are taxed on your worldwide income.

www.ato.gov.au

G

Grayling

I think you are confusing transferring the pension with receiving the pension.

Any income is taxed in Australia....including pensions paid there.

G

IRBaboon

I know. However, the new pensions rules seem to make it a bit more complicated regarding transferring now or later. From the article I quoted previously...

"From 1 July, however, tax legislation will change and Standard Life is advising investors to consider the implications.

For example, if a migrant moves to Australia and leaves cash in a UK personal pension today, tax will be due in Australia on the growth in the fund each year until it is transferred or they started taking benefits. On reaching retirement, all of the income will be taxed as income - as will be the tax-free lump sum. This will not change.

Anyone emigrating before July 1, who is sure the move is permanent, would be advised to transfer their benefits to Australia shortly after emigrating. This strategy will incur little or no tax on the growth and the whole fund can be taken tax-free at retirement."