movingaway

Can someone just confirm with me, is super like the UK's NI or is it more like a personal pension? If it is more like a personal pension, how do we contribute so that we can claim an Ozzie pension?

Thanks

quoll

There is no "Aussie pension" scheme. Everyone contributes to their chosen superannuation scheme which is effectively a private pension - min 9% contribution but that wont get you enough for retirement so many folk salary sacrifice more into their super fund. If you are still poor when you hit retirement age then you may be eligible for Centrelink age benefits but the expectation of anyone youngish is that they will have put away enough to be self funded retirees.

MartinLuther

It's a bit of both but more like a personal pension. Employers have to contribute an amount equal to 9% of your salary into your chosen super fund. After that it's like a personal pension. You can contribute more in (up to certain limits) if you want. Not sure about self-employed. I don't think they have to contribute anything but I'm not sure about that. Low earners can take advantages of government co-contribution so they'll put in a $ for every $ you put in (again up to certain limits).

When you reach preservation age (60 for most peeps) you can cash it in or keep it running if you're still working. When you cash it in you can invest it in anything you want. Nothing to stop you sticking it all on the horses if you want. However there are things you can invest in which give you tax advantaged income (but I've not looked too much into this yet).

If your super (or your independent income) is below certain limits when you reach pension age then you can get a pension (or part thereof) from the state. This is not related to contributions (it is a gift of the state).

looky

Like others have said, employers contribute a certain % of your salary into the superannuation fund but you can also contribute more from your own fortnightly wage if you like. Some state's public jobs require you to contribute a certain % and the state employer will contribute a % in terms of that to a maximum %.

From what I heard with the super plans nowadays, there doesn't seem to have a great advantage of contributing an excessive amount of your own fortnightly wage into super because the old super plan where you get a super payment at retirement proportion to your super contribution at your last year of work before retirement is gone.

Nowadays, you get whatever you contributed so its better to save it up in banks with high interest rate unless you are trying to cut down on income tax.

ABCDiamond

The Australian Super Scheme:

Most Australian workers will be building their own superannuation up from the Compulsory Super Payments that their employers are making on their behalf.

This is currently at the rate of 9% on top of the persons Salary, as long as they earn more than $450 a month.
This is normally paid into a super scheme very similar to a UK Personal Pension.

When being given a salary package figure, ask if the 9% super is on top of the total figure given, as some employers may include it in that figure.

You can add your own contribution to the amount the employer pays if you wish.

Those who do not have super when they retire, will be eligible for the basic Government paid age pension, which has various income and asset tests.

Wendy66

Thanks for posting this topic and answers, just at the point of needing it

Question if you don't mind me adding one in the pot, can we have our UK pension transferred into any super we start up?


Thanks

mecheng

Yes you can.

bobbyfaescotland

Not any.

The Super Scheme has to be a QROPS Super Scheme, that is recognised by the UK Pension Dept. If you use a super that is not QROPS, then you will pay a significant amount of tax when you transfer.

You also have to complete the transfer of the Super within 6 months of becoming a resident, or again you will pay tax on any gains made from when you arrived to when your super is transferred.

The Super company I used did all the paperwork for me, and all I had to do was sign the forms and it was done. I missed the 6 month window but due to the financial climate I made no gains, so paid no tax.

Have a look here as it has some useful info

http://www.uhyperth.com.au/SiteMap/Q...3/Default.aspx

quoll

Just be sure that you will be wanting to stay here before you move any money. Once it is in Australia, if you are permanent residents then you wont be able to take it out again if it all goes pear shaped as lots of returnees are finding to their cost. At least wait until the 6 month mark.