jad n rich

I understand from search and google etc, australian citizens moving overseas cant access their superannuation, it stays in OZ.

But what about once they reach retirement age.

Say that is 67, when you get to 67 and you have been living overseas for years, You still cant withdraw it?? As in a lump sum?

If your in OZ you can withdraw as much as you like ( current rules ).

But if you live overseas can you get
A} a lump sum,
B] pension type payments from it,
C} locked in OZ for good unless you return.
D} if you return can you withdraw it then remove it from country.

The way this is reading is no pension from OZ because you left prior to retirement age, no or reduced pension from UK if that was where you returned and had missed years of contributions, yet you have money in super in OZ but you cant touch it.

holy cow

Pollyana

As I understand it, it will get paid to youas pension type payments. You certainly don't have to be in Aus to get it, you can claim it wherever you are living.

NickyC

Once you reach 'preservation' age - which currently ranges from 55 to 60 (depending on your date of birth) you can access your super.

You can remove it all as a tax-free lump sum and invest it elsewhere or leave it in Australia and draw a tax-free pension from it. Entirely up to you what you do with it.

jad n rich

I was reading an old thread on here plus several googles and it says if you are a citizen or PR you cant take a lump sum out of OZ.

This super thing is confusing, the acct was telling me that even for aussies staying in Aus it may change soon to no lump sum. That it will have to be used for retirement living only, only a % per year for living, end of the spend it all then getting a pension.

But my major concern is all this stuff about not being able to take the lump sum off to the OS destination where you moved on to.

Pollyana

Have you asked whoever your super fund is with?

NickyC

It's true that PRs and citizens can't take anything out of their super until they reach their preservation age. However, once that age is reached they can (currently) do what they like with it. They can withdraw the lot, invest it overseas or spend it all on pokies if they want to.
Sure, the rules might well change in future but at the moment you can take all your super as a lump sum if you want to. And once you have it, you can do what you like with it.

Pollyana

Thanks for confirming that, its certainly what I had been led to believe

Alan Collett

A tip: watch the personal tax position if you are resident outside Australia when you start drawing income from Australian superannuation.

Best regards.

Pollyana

guess that depends largely on what country you are in? Back to the UK or otherwise......?

jad n rich

I am ringing them today and the ATO etc etc. I expect many 'don't know' answers if past experience is to go by. Unless its a FAQ you start the department passing.

The thought came up on the weekend, we are trying to tie up all loose ends in QLD while selling up. It is way worse than moving in the first place, life was far less complicated then.

jad n rich

Oh yeah! I stumbled on that little matter too.

Lets hope removing it in a lump sum from overseas is possible, many think it is.

And the uncertainty of what the rules will be when you retire, rules could be anything by then, wonder how many peoples plans for retirement will be wiped out by changes to rules on super.

Swerv-o

If you're leaving your funds to fester while you move off somewhere else, you may want to consider churning them into a low or fee free super account, like thisw one offered by ING: Living Super

I lost my job last year, and was very surprised to discover how quickly the monthly fees ate into my savings over the six months while I was looking for work.


S

Fardell

Carefully looking at the level of fees paid is important but if you are certain that you are going to be retiring overseas you might want to consider biasing your investments towards the region/country you intend to retire to - for example if you intend to retire into the US or Europe then making more (unhedged) investments focussed on the USD and Euro than would be normal in an Australian balanced fund might be useful. This limits your forex risk to some degree.

And just to stress, the fact that a super income stream is not taxable in Australia doesn't mean it will not be in your country of residency - I think the UK for example only provides a 10% deduction to reflect your contributions/return of capital.

ozzieeagle

Yes but you can get your Aus Super and the UK pension in full (whatever your contriutions amount to that is) Whereas in Aus the UK pension and your super gets deducted from your Aus government pension, beyond a certain point that is... which most people meet.

How does a Jersey bank account come into this and is it difficult to get one... anyone know ?

teza

Sorry had to quote here as this is incorrect in some parts. Aussie pr or citizen can cash super if in financial hardship and can prove so, ie been on certain welfare payments for 26weeks!