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?
 

[QUOTE=;][/QUO
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.

Re: Pensions..... what do I do?
 

Hi Cornish,

What I have been advised is how this gain is calculated, ie cash value in dollars on the day you become tax resident and then again when you move the money over if its more than 6 months. If the fund gains value because the dollar has gone down, the tax bill could be thousands of dollars, depending on the size of the fund. Having thought about this, I am likely to move it in the 6 months, especially if there is a uk election in this time and the pound starts to recover a bit. However not finally decided yet.

Scotty

Re: Pensions..... what do I do?
 

You are probably better off leaving it where it is but before making a decision, why not ask a UK Pensions Options Specialist? Let me know if you need a contact

Re: Pensions..... what do I do?
 

hi there wur abouts in NI u all from, we are from lisburn, and loking to move to OZ next year.

and we also dont know what to do with the pensions we have when we move !!

Re: Pensions..... what do I do?
 

we are in the same situation, my wife is a nurse and has the superann pension, and has paid it for about 12 years, adn i have a private one, but its all a big tangle to find out clearly what to do with them,!!

Re: Pensions..... what do I do?
 

Bangor but lived in Newtownards before moving to Australia. We're now on the Sunshine Coast, love it here :wub: Where are you thinking of going?

Lynn xx

Re: Pensions..... what do I do?
 

we havent decided yet were, still weighing up each city. they all have pro's and cons its a nightmare lol.

prob between. brisbane, melbourne, perth or gold coast. tell me about where u live ( gold coast). is it good for kids, schools, shops, parks, jobs etc etc.

thanks

chris

Re: Pensions..... what do I do?
 

I too am a nurse with 12 years pension. There is the QROPS you can transfer it too. But you can't access any funds for 5 years. You need to living out of the country for these 5 years. To be able to access these funds then, in 5 years I think you need to be at pensionable age. Have a look at www.qrops.co.uk
It is tax free on this lump sum. But I have been advised to stay put with my pension and keep paying into it for now. It's not worth that much anyway as a final pension lump sum, which is your whole pension fund for the rest of your living days. My recent statement from NHS penions for 12 years service amounts to around £ 62,000.
Best to seek finacial advice on this one.

Good luck. x

Re: Pensions..... what do I do?
 

Hi,

I am in the process of transferring my pension to oz at the moment.

I am using cobens pensions services. You dont pay them directly but they get commission or something.

After you have lived in Australia for 6 months you have to pay tax on your pension, so i decided it was best for me to move my pension over to join with my superannuation. The UK team locate your pension/s in the uk and then put you in touch with a financial advisor in Australia as well to talk about which superannuation fund is best for your pension.

You could always email them for advice. They are incredibly helpful and tell you the pros and cons of moving your pension or leaving it where it is. :)

Hope that helps.

Taryn

Re: Pensions..... what do I do?
 

Hi all.

There can be many advantages of transferring over a UK Pension but in some cases it may not be right.

In relation to the 6 month rule, this is really only a small factor in deciding.

One of the biggest factors should be intention to remain in Australia as once the Pension is transferred here it cannot be transferred back until such time as a condition of release is met ie retirement.

The 6 month rule is generally used as a scaremongering tactic by companies on the UK side to try and secure business before you leave.

Also if you do use them once the funds are in Australia they put you in touch with an Australia Adviser to invest and build you an investment portfolio, this of course all means an additional expense. BTW when they say that they do not charge you and are paid a commission from the Super fund this is a direct charge to you as it comes directly from your Pension monies on transfer.

There are plently of Adviers in Australia that deal with Pension transfers and by doing this you can deal with one Adviser for the whole process which in turn SHOULD cut costs.

It is advisable to deal with one that has knowledge on UK Pensions as they can differ so much and that way you know that you are dealing with an Adviser that is familiar with your product.

Just in relation to the 6 month rule, if tax is due as their has been fund growth etc etc, this can be mitigated down to 15%.

However Superannuation in Australia is taxed on the growth/earnings of the fund at between 10% - 15% anyway. Therefore is the 6 month rule as important as companies make out?


Please note this is just general information and not specific advice. (Apologies but this has to be said).



Regards

Andy Williams

Re: Pensions..... what do I do?
 

Thanks for the information. As i am going through this as well its good to know all everything.......and not just what the companies want me to know.

Re: Pensions..... what do I do?
 

l guess unless you have been to those places its very hard to decide. Maybe go where you get the best job offer or best pay then you could always move to another part of OZ later on.