Super anyway to cash it out when moving back to the UK?
#1
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
Is that possible?, it seems silly to leave and have it consumed by fees, is there any other options.
Thanks
#4
Re: Super anyway to cash it out when moving back to the UK?
No other way until you reach retirement age, I'm afraid.
#5
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
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
#6
Re: Super anyway to cash it out when moving back to the UK?
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 .
#7
Re: Super anyway to cash it out when moving back to the UK?
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?
#8
Re: Super anyway to cash it out when moving back to the UK?
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
#9
Re: Super anyway to cash it out when moving back to the UK?
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
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
#10
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.
#11
Re: Super anyway to cash it out when moving back to the UK?
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
#12
Re: Super anyway to cash it out when moving back to the UK?
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
#13
Re: Super anyway to cash it out when moving back to the UK?
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
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
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 4:52 am.
#14
Re: Super anyway to cash it out when moving back to the UK?
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
#15
Re: Super anyway to cash it out when moving back to the UK?
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
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