Pensions..... what do I do?
 

I currently have a final salary pension with the NHS which i've been paying into for 12 years.

When we migrate what happens to it?

Do I forget about it and it pays out when im 65 at my current salary?

Can I cash it in and bring a lump sum with me?

I will speak to my finance dept but wondered if anyone here had experience of NHS pensions.

Re: Pensions..... what do I do?
 

I don't know about the transferring of pensions, so will leave that for somebody else. But I just thought I would mention that in the UK it is not possible to convert a pension (any pension) into a lump sum of cash for yourself now.

Re: Pensions..... what do I do?
 

I thought i'd heard that a few years ago..... sort of hoped i was wrong.

Re: Pensions..... what do I do?
 

You need to get good independent financial advice - it might be better to leave it where it is if it is a defined benefit scheme.

The other thing to watch out for is that you dont transfer anything into superannuation here until you are sure that you are going to like it - you have 6 months to decide without any tax implications - because once your money is here and you have permanent residence then you wont be able to take it out of the country until you hit retirement age.

Re: Pensions..... what do I do?
 

This is interesting because I too am in this situation and very unsure as to what to do with my pension. Although I haven't got as much as 12 years. I don't really want to start my pension over again as I'm not getting any younger. I will be watching this thread closely and if I find any info out I will post. xx

Re: Pensions..... what do I do?
 

Just to add a note regarding the state pension......
You need 30 years of contributions to receive the state pension, my wife currently has 19 years and we have continue contributions, should we wish too.
Just as an indication (may be different for everyone?) she has to pay:-
GBP392.60 for 2006-2007
GBP405.60 for 2007-2008

I am assuming this amount will be similar for the remaining 11years.
Hope that helps.

Neil.

Re: Pensions..... what do I do?
 

I thought about paying the NI stamp from over here in Australia but I decided that by the time I'm 65 in 20 years time the British government will have stopped paying it to people living abroad. The UK has massive unfinanced pension liabilities and it's a political nobrainer for them to stop "the rich" getting any. (i.e. people sunning themselves on the beach in Spain or Australia)

Re: Pensions..... what do I do?
 

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your so right there.i am not sure but didnt the Good old labour gov raise the Pension age to 67 and it wont be long and it will probably be raised to 70.
people would probably be better off paying extra into their super fund than to give money to the uk in paying class 2 or class 3 ni contributions.
At the moment you need 30 years of contributions to get a full uk pension,if your wife has 19 years contributions then she will at retirement age get 19/30 ths of a full pension.
Renth,
i believe the same as you,they will stop paying it to people overseas or the retirement age will be raised so high that it will not be worth paying the extra.
ive got 20 years of NI contributions,i am not paying anymore into the uk via voluntary ni contribtions but will pay more into my super fund,plus i can get my super at an earlier age and enjoy it.

Re: Pensions..... what do I do?
 

It will continue to accrue based on your current contributions.

Do I forget about it and it pays out when im 65 at my current salary?

- that is one option. Whether it is the right one for you will need some independent financial advice.

Can I cash it in and bring a lump sum with me?
- No, but you can get a cash transfer value and transfer that into a qualifying scheme.

Issues you need to think about and get advice on are that if you leave it in the uk you will be risking poor exchange rates, and the tax free lump sum will not be tax free if you are in Oz

If you move it you will get a better tax treatment and more flexibility (but must move it within 6 months) but lose the guarantee of a fixed sum for life.

Its not a simple issue and before I looked at it I was certain I would keep my public sector pension in uk. I will however now be transferring (and hoping the exhange rate improves very soon!)

Good luck
Scotty

Re: Pensions..... what do I do?
 

hi scotty,
it all depends on what you have paid into these schemes.i had a MoD pension with 12 years,i haven't transferred that yet as with all UK civil service departments they are extremely slow in processing my request for a transfer value plus i am waiting for the exchange rate to pick up a bit.
what i have found out is that you only pay tax at 15% on what profit your pension fund has made since the date you arrived in Australia.That is if you don't transfer it in the 6month time frame.
I was exactly the same as you,i was going to keep the civil service pension in the UK but i will bring it over once the exchange rate goes up a bit.

Re: Pensions..... what do I do?
 

Same as Australia then

http://www.theaustralian.com.au/news...-1225711580776

Re: Pensions..... what do I do?
 

Can you transfer a UK Civil Serive pension? I have 20 years in the Northern Ireland Civil Service - albiet the same as the UK - and was lead to believe it just had to lie dormant until I reach retirement age.

Hubby had a private pension and we've just recently transferred it over with the help of Westpac.

Lynn xx

Re: Pensions..... what do I do?
 

Yes you can transfer a civil service pension fund into a super fund as long as the fund is a QROPS scheme.You have to write to the admin unit of your civil service pension fund and request a transfer value.
if your happy with that contact your super fund and inform them you want to roll over a uk pension fund into their scheme.let them do the rest.if its been less than 5 years since you left the UK for tax implications the super fund will put it into a separate account from your ordinary personal/employer super.I believe this is due to tax implications from the UK government.

Re: Pensions..... what do I do?
 

You need 30 years for a full state pension, but she would still be entitled to a lower amount if she discontinued contributions. Also, does she work? If she does, she may be able to pay a lower amount - see http://www.hmrc.gov.uk/pdfs/nico/ni38.pdf page 9 onwards.

Re: Pensions..... what do I do?
 

your pension as you have only been paying or employer contributing for 12 years,it will not pay out when your 65 at your current salary.for it to pay out at current salary you or your employer have to contribute for many years i think it is 40years it is the same as a civil service pension.To get a full pension equivalent to current salary 12 years is not enough.
you should have an annual benefit statement which will give projected pension at pension age and benefits to date.
they are very different.