I know this is a complex subject but, are there any experts out there who can if posssible, simplify the options that are open to what you can choose to do with your uk pensions if you decide to move to Oz, basically what are the pros and cons, I have several different pensions spread over 25 years, I can see this far enough if we move. Another thought, do you still receive a state pension overseas if you migrate assuming you have paid your National Insurance contributions.

marty.d

Hi Marty.d

We are going to seek advice from Alan once we're a bit further along the process. I think this will be money well spent, because from what we've found out so far it can be a bit of a mine field. With regard to UK pension, I think I'm right in saying that your state pension is frozen at the rate when you move to Aus ie. is no longer index linked and pays out at normal time ie. 65. (that's if there's going to be a state pension in years to come!!)

Lesley

well the way things are in the UK at the moment, I don't think by the time I retire there will be a state pension, and if it is frozen it will be worthless by then anyway. Thought I would throw this in the forum as I would have thought people who have migrated and used this forum must have come across circumstances similar to this. A little advice on this front wouldn't go amiss, best of luck on your application and thanks.

marty.d

On one aspect I've taken a cautious / cheap approach based on what if the wife wants to return to the UK if I turn my toes up first - I applied to be able to continue paying NI (class2) contributions whilst resident in Oz. This means we maintain our UK state pension rights up till our retirement age at which point they'd then be frozen e.g. on the pension forecast we got from Dept of Pensions states if she were frozen out now, her UK state pension would be £37 /week in 25 years (probably buy a bar of choc then). If she keeps paying Class 2 NI till retirement the pension would be &157 = big difference + this figure would then be frozen. Two points to bear in mind; How much will the contributions go up over the next 25 years relative to the level of state pension (currently Class 2 NI contributions are £2/week) and; would you be better off investing this money elsewhere? One major benefit to being accepted is that the contributions are not payable until after the current tax year and can be paid by various methods i.e. we will not have to pay 2005/2006 contributions until May 2006 at which time I'll appraise their worth then. Sorry its bit long winded but....have fun
JerryC

Good point, thanks for that, suppose whats £2 a week, if that keeps your pension index linked. It may be worth thinking about as opposed to it being frozen. Still looking for info on what to do with my current pensions, think I may end up seeking professional financial advice since we are talking 25years of company pensions. If I do find the info I'll post any relevant details for on this site.
marty.d

I've used PrismXpat(email Darion Pohl on; darion@prismxpat.com ) to determine the worth of shifting pensions - we've got a few + it costs for each assessment to be prepared. Even though I started the process in June I still haven't got anything definitive sorted yet and we depart early Jan'05 ! It's a complicated subject (tax considerations etc)and the sooner you get started the better as it takes forever to get info from pensions funds re; fund transfer values etc. Also, different issues about transfers arise when dealing with some final salary schemes.
Hope this is of help
JerryC

Thanks jerry, I'll probably have to seek professional advice as I have a combination of final salary pensions and money purchase schemes, I can well imagine pension companies taking there time as they probably want to hold on to your cash as long as possible. Waiting to see if our visa application is successful, Thats the most worrying part. Just doing research at the mo, not as if any move is set in stone just yet.

Hi
We are Retired and moving to Perth Has
enyone got information on transfering
pensions to a bank in oz and do they
charge at every transaction.thanks for
any help.
DICKY

Dicky,

Have a chat with the Migration Desk at hifx (T 01753 859159 in the UK) as I believe they have a service that allows for the regular transfer of funds from the UK to Australia.

Feel able to say that Alan at Go Matilda mentioned them to you ...

Also, don't forget that the pension income is assessable in Australia and not in the UK when you move downunder, with a deduction usually available for what is called the Undeducted Purchase Price (which reduces the net amount that is assessable to tax in Australia) ...

Best regards.

quote:

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Originally posted by dicky doyle:
Hi
We are Retired and moving to Perth Has
enyone got information on transfering
pensions to a bank in oz and do they
charge at every transaction.thanks for
any help.
DICKY

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