Superannuation in Australia
#1
Superannuation in Australia
This is my first post as a new member.
Impressed by the breadth of topics covered and all the help offered.
Just starting out on the whole emigration process and trying to decide if it's worthwhile. Thinking of the whole thing like the US military procedures DEF CON 1-5, were we are currently at DEF CON 1 (looking into the process, information gathering, no major expenses incurred) and hopefully moving up the scale to DEF CON 5 (we're on the plane!).
My first query is on Superannuation. Both myself and the wife are public sector workers with 15-20 years service and anticipating reasonable final salary pensions (when the time comes). What are my options in transferring these pensions if we emigrate? Can they be easily transferred to prospective new employers. I have read that most Aussie organisations have Supn schemes.
Cheers David
Impressed by the breadth of topics covered and all the help offered.
Just starting out on the whole emigration process and trying to decide if it's worthwhile. Thinking of the whole thing like the US military procedures DEF CON 1-5, were we are currently at DEF CON 1 (looking into the process, information gathering, no major expenses incurred) and hopefully moving up the scale to DEF CON 5 (we're on the plane!).
My first query is on Superannuation. Both myself and the wife are public sector workers with 15-20 years service and anticipating reasonable final salary pensions (when the time comes). What are my options in transferring these pensions if we emigrate? Can they be easily transferred to prospective new employers. I have read that most Aussie organisations have Supn schemes.
Cheers David
#2
BE Enthusiast
Joined: Aug 2005
Location: Melbourne
Posts: 355
Re: Superannuation in Australia
Originally Posted by pippin lara
This is my first post as a new member.
Impressed by the breadth of topics covered and all the help offered.
Just starting out on the whole emigration process and trying to decide if it's worthwhile. Thinking of the whole thing like the US military procedures DEF CON 1-5, were we are currently at DEF CON 1 (looking into the process, information gathering, no major expenses incurred) and hopefully moving up the scale to DEF CON 5 (we're on the plane!).
My first query is on Superannuation. Both myself and the wife are public sector workers with 15-20 years service and anticipating reasonable final salary pensions (when the time comes). What are my options in transferring these pensions if we emigrate? Can they be easily transferred to prospective new employers. I have read that most Aussie organisations have Supn schemes.
Cheers David
Impressed by the breadth of topics covered and all the help offered.
Just starting out on the whole emigration process and trying to decide if it's worthwhile. Thinking of the whole thing like the US military procedures DEF CON 1-5, were we are currently at DEF CON 1 (looking into the process, information gathering, no major expenses incurred) and hopefully moving up the scale to DEF CON 5 (we're on the plane!).
My first query is on Superannuation. Both myself and the wife are public sector workers with 15-20 years service and anticipating reasonable final salary pensions (when the time comes). What are my options in transferring these pensions if we emigrate? Can they be easily transferred to prospective new employers. I have read that most Aussie organisations have Supn schemes.
Cheers David
Firstly, welcome to the forum.
Secondly, superannuation is a minefield!! My best advice would be to consult a professional. The rules regarding transfer are very complicated and because the Aussie system is very different to the UK system what you need to do is complicated.
I know this is not the answer you are looking for, but after gaining 15 years worth of pension from the public sector you want to make sure you don't lose a penny.
Good luck
#3
Re: Superannuation in Australia
hello and welcome~~~~~~~~~
sorry i am not going to be much either..other than agree with..NIGENABBY~..
good luck
sorry i am not going to be much either..other than agree with..NIGENABBY~..
good luck
#4
Forum Regular
Joined: Jun 2004
Posts: 38
Re: Superannuation in Australia
I just finished a 2 hour conversation with Darion Pohl from Prism Xpats. The whole area is a minefield and it seems there aren't an awful lot of people qualified to give you the advice you need.
Seeing as I have a Final Salary scheme worth approx 9k a year when I retire, I felt it was prudent to get advice. What was revealing was that by leaving my pension pot in the UK I would have to pay between 0% and 35% in tax on the gains it makes. And also that if I transferred my pot to Australia I would be able to take it out in full when I retired.
There are a whole other bunch of things too, but I don't have the time to explain!
Seeing as I have a Final Salary scheme worth approx 9k a year when I retire, I felt it was prudent to get advice. What was revealing was that by leaving my pension pot in the UK I would have to pay between 0% and 35% in tax on the gains it makes. And also that if I transferred my pot to Australia I would be able to take it out in full when I retired.
There are a whole other bunch of things too, but I don't have the time to explain!
#5
Re: Superannuation in Australia
Thanks for the tips.
Not sure who I'll speak to next...maybe the Strathclyde Pension Fund themselves.
Not sure who I'll speak to next...maybe the Strathclyde Pension Fund themselves.
#6
Forum Regular
Joined: Aug 2005
Location: Leicester
Posts: 154
Re: Superannuation in Australia
Hi David. Welcome!!! There was a thread on this very subject not so long ago and the general outcome seemed to be if you have a final salary scheme it may be better to leave it here as the 'gains' are not taxed as you do not have a 'fund' as such. You will get more info by looking for previous threads specifically discussing this subject or if you are lucky the 'experts' of the BE website may reply to you. C'mon - you know who you are!!! Good luck anyway. Best wishes, Trev
#7
Re: Superannuation in Australia
Originally Posted by Hullfcfans
I just finished a 2 hour conversation with Darion Pohl from Prism Xpats. The whole area is a minefield and it seems there aren't an awful lot of people qualified to give you the advice you need.
Seeing as I have a Final Salary scheme worth approx 9k a year when I retire, I felt it was prudent to get advice. What was revealing was that by leaving my pension pot in the UK I would have to pay between 0% and 35% in tax on the gains it makes. And also that if I transferred my pot to Australia I would be able to take it out in full when I retired.
There are a whole other bunch of things too, but I don't have the time to explain!
Seeing as I have a Final Salary scheme worth approx 9k a year when I retire, I felt it was prudent to get advice. What was revealing was that by leaving my pension pot in the UK I would have to pay between 0% and 35% in tax on the gains it makes. And also that if I transferred my pot to Australia I would be able to take it out in full when I retired.
There are a whole other bunch of things too, but I don't have the time to explain!
With Final Salary the pension fund is taking all the risk of fluctuations in stock market etc and are guaranteeing to pay you a (good) pension irrespective. With the drops in stockmarket etc over the last few years many companies (even in the public sector) have stopped doing final salary.
With final salary it is very important to understand the implications... Get a valuation from the pension provider and find out what the transfer value is, then see whether putting that sum into an ordinary pension/super will provide the same income when you retire...
regards and good luck
Alex