AUS and UK pensions when I move back??
Nov 11th 2018, 1:50 am
#1
Just Joined
Thread Starter
Joined: Nov 2018
Posts: 2
AUS and UK pensions when I move back??
For the past 35 years, living in Australia, I’ve said to anyone who asked “No, I’d never go back to live in England”.
So I’ve surprised everyone (not least myself !) by having a change of heart. At the age of 67. I’ve been fortunate enough to spend a few months there every other year since 2007, but this year since returning from my holiday I just can’t shake the feeling that it’s time to go “home”, as much as I love Australia.
So for the first time ever I need to look into the Australian/UK pension situation. I’ve found this forum extremely helpful, especially the thread at ......... (oh, I tried to insert a link there but I'm not allowed to post URLs until I've made 5 posts. Fair enough. It ended with the number 880409). But it’s all so complicated that I’m not sure I’ve understood it correctly. I’d be most grateful for your comments and advice.
A little background .... I’m a widow, with no family in Australia, and just one cousin in England. I know no-one else over there, but that doesn’t deter me from going back. In fact I’m extremely excited at the big adventure ahead of me. But I need to know how I’m going to afford to live over there :-)
If I have understood the previous threads correctly, my Australia age pension will continue when I return to live in England. (Subject of course to means testing depending on what I decide to do with my house here). Is that right?
I’ve been on the UK age pension since July 2012, fixed at £39.75 per week based on my NI contributions 1969 – 1983 plus some voluntary contributions. I worked in Australia for 17 years prior to March 2001, when I believe the rules changed.
Also, if I’ve understood correctly, whilst my Australian pension remains above $20 per fortnight I won’t be eligible for any increase in my UK pension. Is this correct?
When/if my Australian pension drops below $20 per fortnight, would my UK pension take into account the 17 years I worked in Australia prior to March 2001?
I think I also read somewhere that if I lose my Australian pension completely I would receive the full basic rate UK pension. Is that correct?
If I’m on the right track so far (???), then will come the questions of what to do with my superannuation, whether I can keep my savings in Australia where the interest rates are higher than in England, and I’m sure a zillion other questions which haven’t yet occurred to me!
But first things first - am I on the right track so far? Any advice will be most gratefully received.
If I’ve posted this in the wrong place, or broken any posting rules please forgive me .... I’m a beginner at this.
So I’ve surprised everyone (not least myself !) by having a change of heart. At the age of 67. I’ve been fortunate enough to spend a few months there every other year since 2007, but this year since returning from my holiday I just can’t shake the feeling that it’s time to go “home”, as much as I love Australia.
So for the first time ever I need to look into the Australian/UK pension situation. I’ve found this forum extremely helpful, especially the thread at ......... (oh, I tried to insert a link there but I'm not allowed to post URLs until I've made 5 posts. Fair enough. It ended with the number 880409). But it’s all so complicated that I’m not sure I’ve understood it correctly. I’d be most grateful for your comments and advice.
A little background .... I’m a widow, with no family in Australia, and just one cousin in England. I know no-one else over there, but that doesn’t deter me from going back. In fact I’m extremely excited at the big adventure ahead of me. But I need to know how I’m going to afford to live over there :-)
If I have understood the previous threads correctly, my Australia age pension will continue when I return to live in England. (Subject of course to means testing depending on what I decide to do with my house here). Is that right?
I’ve been on the UK age pension since July 2012, fixed at £39.75 per week based on my NI contributions 1969 – 1983 plus some voluntary contributions. I worked in Australia for 17 years prior to March 2001, when I believe the rules changed.
Also, if I’ve understood correctly, whilst my Australian pension remains above $20 per fortnight I won’t be eligible for any increase in my UK pension. Is this correct?
When/if my Australian pension drops below $20 per fortnight, would my UK pension take into account the 17 years I worked in Australia prior to March 2001?
I think I also read somewhere that if I lose my Australian pension completely I would receive the full basic rate UK pension. Is that correct?
If I’m on the right track so far (???), then will come the questions of what to do with my superannuation, whether I can keep my savings in Australia where the interest rates are higher than in England, and I’m sure a zillion other questions which haven’t yet occurred to me!
But first things first - am I on the right track so far? Any advice will be most gratefully received.
If I’ve posted this in the wrong place, or broken any posting rules please forgive me .... I’m a beginner at this.
Nov 11th 2018, 11:47 am
#2
Concierge
Joined: Jan 2013
Location: Western Australia
Posts: 21,138
Re: AUS and UK pensions when I move back??
For the past 35 years, living in Australia, I’ve said to anyone who asked “No, I’d never go back to live in England”.
So I’ve surprised everyone (not least myself !) by having a change of heart. At the age of 67. I’ve been fortunate enough to spend a few months there every other year since 2007, but this year since returning from my holiday I just can’t shake the feeling that it’s time to go “home”, as much as I love Australia.
So for the first time ever I need to look into the Australian/UK pension situation. I’ve found this forum extremely helpful, especially the thread at ......... (oh, I tried to insert a link there but I'm not allowed to post URLs until I've made 5 posts. Fair enough. It ended with the number 880409). But it’s all so complicated that I’m not sure I’ve understood it correctly. I’d be most grateful for your comments and advice.
A little background .... I’m a widow, with no family in Australia, and just one cousin in England. I know no-one else over there, but that doesn’t deter me from going back. In fact I’m extremely excited at the big adventure ahead of me. But I need to know how I’m going to afford to live over there :-)
If I have understood the previous threads correctly, my Australia age pension will continue when I return to live in England. (Subject of course to means testing depending on what I decide to do with my house here). Is that right?
I’ve been on the UK age pension since July 2012, fixed at £39.75 per week based on my NI contributions 1969 – 1983 plus some voluntary contributions. I worked in Australia for 17 years prior to March 2001, when I believe the rules changed.
Also, if I’ve understood correctly, whilst my Australian pension remains above $20 per fortnight I won’t be eligible for any increase in my UK pension. Is this correct?
When/if my Australian pension drops below $20 per fortnight, would my UK pension take into account the 17 years I worked in Australia prior to March 2001?
I think I also read somewhere that if I lose my Australian pension completely I would receive the full basic rate UK pension. Is that correct?
If I’m on the right track so far (???), then will come the questions of what to do with my superannuation, whether I can keep my savings in Australia where the interest rates are higher than in England, and I’m sure a zillion other questions which haven’t yet occurred to me!
But first things first - am I on the right track so far? Any advice will be most gratefully received.
If I’ve posted this in the wrong place, or broken any posting rules please forgive me .... I’m a beginner at this.
So I’ve surprised everyone (not least myself !) by having a change of heart. At the age of 67. I’ve been fortunate enough to spend a few months there every other year since 2007, but this year since returning from my holiday I just can’t shake the feeling that it’s time to go “home”, as much as I love Australia.
So for the first time ever I need to look into the Australian/UK pension situation. I’ve found this forum extremely helpful, especially the thread at ......... (oh, I tried to insert a link there but I'm not allowed to post URLs until I've made 5 posts. Fair enough. It ended with the number 880409). But it’s all so complicated that I’m not sure I’ve understood it correctly. I’d be most grateful for your comments and advice.
A little background .... I’m a widow, with no family in Australia, and just one cousin in England. I know no-one else over there, but that doesn’t deter me from going back. In fact I’m extremely excited at the big adventure ahead of me. But I need to know how I’m going to afford to live over there :-)
If I have understood the previous threads correctly, my Australia age pension will continue when I return to live in England. (Subject of course to means testing depending on what I decide to do with my house here). Is that right?
I’ve been on the UK age pension since July 2012, fixed at £39.75 per week based on my NI contributions 1969 – 1983 plus some voluntary contributions. I worked in Australia for 17 years prior to March 2001, when I believe the rules changed.
Also, if I’ve understood correctly, whilst my Australian pension remains above $20 per fortnight I won’t be eligible for any increase in my UK pension. Is this correct?
When/if my Australian pension drops below $20 per fortnight, would my UK pension take into account the 17 years I worked in Australia prior to March 2001?
I think I also read somewhere that if I lose my Australian pension completely I would receive the full basic rate UK pension. Is that correct?
If I’m on the right track so far (???), then will come the questions of what to do with my superannuation, whether I can keep my savings in Australia where the interest rates are higher than in England, and I’m sure a zillion other questions which haven’t yet occurred to me!
But first things first - am I on the right track so far? Any advice will be most gratefully received.
If I’ve posted this in the wrong place, or broken any posting rules please forgive me .... I’m a beginner at this.
I can't answer all your questions, but here's what I can answer:Yes, if you're already receiving the Oz age pension it's 'portable', meaning you can continue to receive it in the UK. As you've said, the amount you'll receive is based on your worldwide income, so the amount of Oz pension you will receive will depend on how much other income you receive (including your UK State pension)
When you return to the UK to live, your UK basic State pension will be 'uprated' to the current amount payable, pro rata to your NI contributions. How much that will be depends on whether you fall under the 'old' UK state pension rules or the current rules. As far as I'm aware your UK basic State pension does not reduce or cut out due to any other income - it's different to an Oz pension as the latter is 'means tested' benefit (taking into account your assets and income), while the UK basic State pension is solely based on NI contributions.
Be aware that if you draw an income stream from your Oz superannuation this income is currently tax free in Australia, but not in the UK. This won't be an issue for you if your total income is under your UK personal allowance, but if your total income is over that then you may have to pay tax in the UK on the amount over your personal allowance.
Last edited by spouse of scouse; Nov 11th 2018 at 11:50 am.
Nov 25th 2018, 11:03 am
#3
Just Joined
Joined: Jun 2011
Location: Sydney
Posts: 15
Re: AUS and UK pensions when I move back??
Hi there
I will be moving back to the UK after 30yrs in Australia and been advised to leave my total super in Oz and to draw a pension from that to minimise tax. Everyone is different however. Suggest you talk to Websters Sydney Pty Ltd. They are tax specialists between UK, US and Australia and have been extremely helpful to me in making my plans. Their number is +61 2 8448 8117. I dealt with Joanne Lamberth and she is excellent,
I will be moving back to the UK after 30yrs in Australia and been advised to leave my total super in Oz and to draw a pension from that to minimise tax. Everyone is different however. Suggest you talk to Websters Sydney Pty Ltd. They are tax specialists between UK, US and Australia and have been extremely helpful to me in making my plans. Their number is +61 2 8448 8117. I dealt with Joanne Lamberth and she is excellent,
Nov 25th 2018, 7:39 pm
#4
Just Joined
Thread Starter
Joined: Nov 2018
Posts: 2
Re: AUS and UK pensions when I move back??
Spouse_of_scouse: Thank you for your advice. As you say, the amount of UK tax is something I will need to factor in to the calculations.
Kath_143: Thank you for suggesting Websters Sydney - it will be very helpful to obtain a specialist's advice. I'm particularly interested to determine whether owning my own home in the UK will be classed as an exempt asset for calculation of my Australian pension. And what will happen to my pension in the period between selling my home here in Oz and buying one in the UK.
I've just read your post about Main Residence Exemption Tax, and the changes as from 1st July 2019. This is major! As I don't want to be liable for capital gains tax when selling my Australian home my plan at this stage is this: I'm going to England for 8 months in mid January 2019, returning mid September .... just under the 183 allowed days in the 2019/20 UK tax year so that I won't be classed as a UK resident. A friend will be staying in my house during that time rent-free. When I return to Australia in September 2019 I'll then sell my house here (hopefully!), and once it's sold move permanently to the UK after 6th April 2019, and either find a house over there to buy, or look at long-term renting .... this is where knowledge of the Australian pensions assets test and its treatment of a foreign main residence will be crucial.
I'll also have to get my head around moving to a much smaller home in the UK. We really are spoiled here in Oz by the huge houses .... much bigger than one really needs. I heard Kevin McCloud say on a recent Grand Designs that the average size of a house in the UK is 65 sqm, and in Australia 265 sqm! I've already started the process of reducing my "stuff", but the hardest thing will be parting with my collection of 4000+ books. There's no way they're going to fit into any house in the UK that I can afford to buy, hence the idea of possibly renting long-term. I'm not stressing over the smaller space however .... the 8 months in England next year will be a perfect 'trial run' to see how well I adapt to living in a much smaller place. I'm confident the emotional benefits of moving back "home" will far outweigh the disadvantages.
Best wishes for you move back Kath.
Kath_143: Thank you for suggesting Websters Sydney - it will be very helpful to obtain a specialist's advice. I'm particularly interested to determine whether owning my own home in the UK will be classed as an exempt asset for calculation of my Australian pension. And what will happen to my pension in the period between selling my home here in Oz and buying one in the UK.
I've just read your post about Main Residence Exemption Tax, and the changes as from 1st July 2019. This is major! As I don't want to be liable for capital gains tax when selling my Australian home my plan at this stage is this: I'm going to England for 8 months in mid January 2019, returning mid September .... just under the 183 allowed days in the 2019/20 UK tax year so that I won't be classed as a UK resident. A friend will be staying in my house during that time rent-free. When I return to Australia in September 2019 I'll then sell my house here (hopefully!), and once it's sold move permanently to the UK after 6th April 2019, and either find a house over there to buy, or look at long-term renting .... this is where knowledge of the Australian pensions assets test and its treatment of a foreign main residence will be crucial.
I'll also have to get my head around moving to a much smaller home in the UK. We really are spoiled here in Oz by the huge houses .... much bigger than one really needs. I heard Kevin McCloud say on a recent Grand Designs that the average size of a house in the UK is 65 sqm, and in Australia 265 sqm! I've already started the process of reducing my "stuff", but the hardest thing will be parting with my collection of 4000+ books. There's no way they're going to fit into any house in the UK that I can afford to buy, hence the idea of possibly renting long-term. I'm not stressing over the smaller space however .... the 8 months in England next year will be a perfect 'trial run' to see how well I adapt to living in a much smaller place. I'm confident the emotional benefits of moving back "home" will far outweigh the disadvantages.
Best wishes for you move back Kath.
