lynnbrooks

In preparation for migrating to Oz, I've been trying to look into the world of centrelink in terms of retirement pensions.

Boring I know....but before we go, we need to decide whether to top our N.I. Stamp up and continue to pay it whilst living in Oz towards our retirement about 23 yrs away or to forget it and start a private one in Oz.

At the mo, i'm thinking it would be good to continue the payments as well as pay into one in Oz but i'd like to hear what others have/are doing....

I realise it's not a sexy subject but would appreciate imput..cheers,
Lynn

gruffbrown

Not being a great lover of government bureaucracy or paperwork, I've got to say that the NI contributions office was great, they will send mail to your address abroad and send you all the relevant information. I can get my pension sent to me over here, when I do retire, if there is a pension then (I'm in the US). Not sure if they have a reciprocal agreement with OZ ?

http://www.hmrc.gov.uk/cnr/osc.htm

232Bar

We set ours to minimum level and we pay it once per year to the NI office in the UK. Was easy to do and, like other poster, they were actually helpfull!!!!

Pomster

we are paying voluntary contributions (less than 10 pounds per month if you are employed here) but I m not sure they are worth it.
Government pensions which are paid to former UK residents in Australia are frozen and not increased annually.
There is an on-going test case about this (Annette Carson is the instigator) and UK government are not prepared to back down.

If you think you might return to UK, keep the contributions going - and this can be paid up to 6 financial years after the last fin year you were in UK, but if Oz is to be your future home, you might be better to focus all efforts on a Oz pension

ABCDiamond

I stopped paying in.

My assumption is that by the time I claim, there will be no Government Age pension, (like some other countries), so i'll have wasted my money. In my view it's better off going into one here.

But, we never know for sure.

brisnick

i've done nothing, but then i opted out of serps way before i left the uk anyway. unluckily for me i was with equitable life, so basically my uk pension is buggered anyway.

i'll have won the lotto by the time i retire anyway.

lynnbrooks

Thanx guys for the comments so far...it's actually good to see that the answers are varied which helps me to realise the dilemma in my own mind...because it's a dilemma generally.
But to comment on ABC's thought...this was origonal feeling..then remembered what i've already paid into here in the u.k. and it might feel like i've wasted it.
Can i ask what is the minimum/maximum amount of years that one has to pay 'stamp' in Oz for to qualify for state pension in retirement?

I ask this cos talking to the pensions office in the uk today...they informed me that the min amount of years is 11 and the max is 44 yrs.,so i guess if you pay something for 44yrs,then we are entitled to the higher rate of pension but if i start from scratch in Oz,I don't have 44yrs left in my worklife,therefore wondered about continuing the payments.

But the big question is...will it still be there in 25yrs time? Surely,even if it is abolished,we who have paid in, would have a civil war on if we just simply 'lost' it, we wouldn't let ourselves be robbed like that would we?
Lynn

ABCDiamond

10 Years residence is all that is required, no actual payments.
But note: The age pension is income and asset tested here.

The separate compulsory employer contributions go into your own "personal pension scheme" here. The hope is that the majority of people will therefore have a suitable pension scheme, paid for ny employers, and will not need the government one.


retirement

lynnbrooks

WOW...that all seems much better than our system..in your experience would you agree?
Lynn

diddy

Agreed - it won't be long.

Paul.

ABCDiamond

I feel the government would say something like:

The NI contributions cover the National Helath service and aged retirement pension, it's all gone on the Health service, sorry, nothing left, unless the NI contribution is increased.

Then the people have the choice; pay more NI contributions into the government, so that they can look after it for you, (again) or set up private pensions like they have in Australia ?

Imagine you run the government.... doesn't it look tempting ? (right and wrong being immaterial, when you are a politician)

lynnbrooks

Taking your point...do you know any half-decent PRIVATE Pension Schemes?
I am starting to think my own ability to save money would be better than the gov's and that's saying something knowing my bank balance!!!!
Lynn

ABCDiamond

Now, THAT, is the million $ question

I think the best one is the one that the Government Employees are in, but it is restricted to Government Employees only

lynnbrooks

How ironic that you have to work for the bleeding gov to get a decent pension...ha!
Well being blonde and slightly dense,there's not much hope of working for them!!
I guess most people will be relying on the 'employment pension scheme' alone and probable that many don't have a private one on top of that?
Does a lot of your friends/colleages have private pensions?
Lynn

Hels

Actually...you would fit right in!!!


I know because I worked for them for 12 yrs!!