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Super anyway to cash it out when moving back to the UK?

Super anyway to cash it out when moving back to the UK?

Old Jul 10th 2018, 9:09 am
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Default Super anyway to cash it out when moving back to the UK?

Hi, has anyone figured out a way to cash out their super?
Is that possible?, it seems silly to leave and have it consumed by fees, is there any other options.
Thanks
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Old Jul 10th 2018, 9:35 am
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Default Re: Super anyway to cash it out when moving back to the UK?

Originally Posted by dave99 View Post
Hi, has anyone figured out a way to cash out their super?
Is that possible?, it seems silly to leave and have it consumed by fees, is there any other options.
Thanks
What visa do you have in Australia?
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Old Jul 10th 2018, 9:52 am
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Default Re: Super anyway to cash it out when moving back to the UK?

Originally Posted by spouse of scouse View Post
What visa do you have in Australia?
I've got citizenship in Aus, been here 10 years and planning on returning to the UK
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Old Jul 10th 2018, 9:57 am
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Default Re: Super anyway to cash it out when moving back to the UK?

Originally Posted by dave99 View Post
I've got citizenship in Aus, been here 10 years and planning on returning to the UK
Ok, then the only way you can access your super early is to meet one of the conditions, here https://www.ato.gov.au/Individuals/S...to-your-super/

No other way until you reach retirement age, I'm afraid.
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Old Jul 10th 2018, 10:05 am
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Default Re: Super anyway to cash it out when moving back to the UK?

good find there, thanks
I don't think I fit into any of those categories.
There must be a way surely. Just letting all that money sit there and be consumed by fees seems crazy
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Old Jul 10th 2018, 10:27 am
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Default Re: Super anyway to cash it out when moving back to the UK?

Originally Posted by dave99 View Post
good find there, thanks
I don't think I fit into any of those categories.
There must be a way surely. Just letting all that money sit there and be consumed by fees seems crazy
It doesn't just sit there, the idea is it's invested and earns interest, which compounds. Have you chosen your investment strategy? ie low risk, typically cash, right up to high risk investments.

No, there's not another way to withdraw it and it's the same for all Aussies. The government requires employers to pay your super contributions, which are on top of your salary, so that you have some funds in retirement - with the spin off for the government being less reliance on the age pension. You can move the funds to a self-managed super fund (SMSF) and invest it yourself, but you need to follow the SMSF rules and stay on top of the reporting requirements .
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Old Jul 10th 2018, 11:22 pm
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Default Re: Super anyway to cash it out when moving back to the UK?

Originally Posted by dave99 View Post
good find there, thanks
I don't think I fit into any of those categories.
There must be a way surely. Just letting all that money sit there and be consumed by fees seems crazy
My super has been “sitting there” for just over five years (since I last had a paid job) and in that time it’s increased in value by about 50%. I haven’t paid anything in or taken anything out in that time and it’s invested in “safe” options as I don’t want to risk losing any of it.

I quite enjoy logging in to my account periodically and checking the balance. No idea why you think your super balance will be consumed by fees. Is it a low amount?
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Old Jul 11th 2018, 5:21 am
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Default Re: Super anyway to cash it out when moving back to the UK?

Originally Posted by dave99 View Post
good find there, thanks
I don't think I fit into any of those categories.
There must be a way surely. Just letting all that money sit there and be consumed by fees seems crazy
As you are going to have to leave it, you should look at minimising the costs to maintain the fund while you are away.

You should roll it over to a low fee index tracking fund, and cancel any insurances that you have within it as well.

The lowest fee Retail fund is Virgin Super lifestage tracker, and the lowest fee Industry fund is Hostplus Balanced Index fund.

These are index tracking funds, so you're not paying commissions so that some fund manager can pay off his Ferrari faster, and statistically index funds outperform managed funds over the lifetime of your fund.

Cull the insurances, as they won't be worth anything.

Remember that you can also continue to contribute to the fund while you are away if you wish - though there are some limitations on this. I think the limit is $25k p/a before you lose the concessional tax advantages.

There is also (I believe, but may be wrong) an option to pay CGT on the current gains, and then the remainder can continue to grow tax free, but I am unsure how that actually works, or how you organise it with the fund. It's something to do with deemed disposal of an investment on change of tax residency status. This is second hand information from a friend who moved back to the UK, and he was sketchy about how to achieve it.

HTH.


S
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Old Jul 15th 2018, 11:44 am
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Default Re: Super anyway to cash it out when moving back to the UK?

Originally Posted by Swerv-o View Post
As you are going to have to leave it, you should look at minimising the costs to maintain the fund while you are away.

You should roll it over to a low fee index tracking fund, and cancel any insurances that you have within it as well.

The lowest fee Retail fund is Virgin Super lifestage tracker, and the lowest fee Industry fund is Hostplus Balanced Index fund.

These are index tracking funds, so you're not paying commissions so that some fund manager can pay off his Ferrari faster, and statistically index funds outperform managed funds over the lifetime of your fund.

Cull the insurances, as they won't be worth anything.

Remember that you can also continue to contribute to the fund while you are away if you wish - though there are some limitations on this. I think the limit is $25k p/a before you lose the concessional tax advantages.

There is also (I believe, but may be wrong) an option to pay CGT on the current gains, and then the remainder can continue to grow tax free, but I am unsure how that actually works, or how you organise it with the fund. It's something to do with deemed disposal of an investment on change of tax residency status. This is second hand information from a friend who moved back to the UK, and he was sketchy about how to achieve it.

HTH.


S
​​​​​​
+1 for Hostplus. I like that I can pick the companies that I want to invest in

Dogs of the Dow is a good investment theory for part of your fund
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Old Jul 23rd 2018, 11:42 pm
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Default Re: Super anyway to cash it out when moving back to the UK?

I left about $3,000 in hostplus (had forgotten about it) about 15 years ago and now it's worth $30,000 without me adding to it. No idea if that is considered a good return or not but not bad for not adding to it at all over the years.
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Old Jul 24th 2018, 5:30 am
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Default Re: Super anyway to cash it out when moving back to the UK?

Originally Posted by dave99 View Post
Hi, has anyone figured out a way to cash out their super?
Is that possible?, it seems silly to leave and have it consumed by fees, is there any other options.
Thanks
Hold onto it. Do some research and stick it in a solid, low-fee fund without any life insurance - REST and Hostplus are good. Maybe go for a high-risk, high return option and you may be surprised at what it's worth in 10-20 years time
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Old Jul 25th 2018, 12:28 am
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Default Re: Super anyway to cash it out when moving back to the UK?

Originally Posted by Amazulu View Post
Hold onto it. Do some research and stick it in a solid, low-fee fund without any life insurance - REST and Hostplus are good. Maybe go for a high-risk, high return option and you may be surprised at what it's worth in 10-20 years time
Exactly my point - it's got to stay here, so it may as well be working. A low fee account is the way forward here.

While good for returns, Hostplus aren't the best for fees. Here are my fee calculations for this year, for a $150,000 account balance:

Hostplus - $2253
CareSuper - $1863
REST - $1358
AustralianSuper - $1023
Virgin Super - $943

Of course you need to trade off fees for performance as well. I review my Super every year to make sure I'm still getting a good deal.


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Old Jul 25th 2018, 5:50 am
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Default Re: Super anyway to cash it out when moving back to the UK?

Originally Posted by Swerv-o View Post
Exactly my point - it's got to stay here, so it may as well be working. A low fee account is the way forward here.

While good for returns, Hostplus aren't the best for fees. Here are my fee calculations for this year, for a $150,000 account balance:

Hostplus - $2253
CareSuper - $1863
REST - $1358
AustralianSuper - $1023
Virgin Super - $943

Of course you need to trade off fees for performance as well. I review my Super every year to make sure I'm still getting a good deal.


S
Good research. Based on the fees of your funds, I'd go with REST. One of the best

I also take a keen interest in my super. For something that most of us have and that can contain a significant amount of cash, there is so much ignorance and apathy out there. Bizarre

Last edited by Amazulu; Jul 25th 2018 at 5:52 am.
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Old Jul 26th 2018, 1:59 am
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Default Re: Super anyway to cash it out when moving back to the UK?

Originally Posted by Amazulu View Post
Good research. Based on the fees of your funds, I'd go with REST. One of the best

I also take a keen interest in my super. For something that most of us have and that can contain a significant amount of cash, there is so much ignorance and apathy out there. Bizarre
Only the last few years have I really started to get clued in on Super - I think the major irritation is how difficult the funds make it to move super from one provider to another. In theory it should be reasonably simple, but in practice it seems to be a nightmare of administration and stuffing about. No doubt partly the reason that people just leave it alone.

I've always been reasonably happy with the Virgin Money offering, however this year it has fallen quite a distance short of the higher performing funds.


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Old Jul 26th 2018, 2:55 am
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Default Re: Super anyway to cash it out when moving back to the UK?

Originally Posted by Swerv-o View Post
Only the last few years have I really started to get clued in on Super - I think the major irritation is how difficult the funds make it to move super from one provider to another. In theory it should be reasonably simple, but in practice it seems to be a nightmare of administration and stuffing about. No doubt partly the reason that people just leave it alone.

I've always been reasonably happy with the Virgin Money offering, however this year it has fallen quite a distance short of the higher performing funds.


S
Also, I find the info that they have on their websites or what they send you is overly complicated and hard to understand. I know that super is a sophisticated financial product and that there are legal obligations, but they could make things simpler to understand
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