Emigrating to Aus - What about the Pension?
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Emigrating to Aus - What about the Pension?
I am considering emigrating to Australia 
when I retire next year but I heard a nasty rumour the other day that my pension will not be indexed linked. So when I reach 55 it will remain at the existing rate rather than increasing to its index linked value.
Can anyone shed any light on this?
Regards
when I retire next year but I heard a nasty rumour the other day that my pension will not be indexed linked. So when I reach 55 it will remain at the existing rate rather than increasing to its index linked value. Can anyone shed any light on this?
Regards
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You may not be aware that UK and Aus have a mutual Tax agreement that pensions are not taxed if you live in reciprocal countries and earn [and pay tax] in the other.
ie your UK pension will not attract UK tax if you live and earn in Aus.
It will not earn tax in Aus but will be added to youir total Aus income to ascertain your Aus tax bracket.
Did not answer your question but that info may be helpful regardless.
ie your UK pension will not attract UK tax if you live and earn in Aus.
It will not earn tax in Aus but will be added to youir total Aus income to ascertain your Aus tax bracket.
Did not answer your question but that info may be helpful regardless.
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madasacow
Not sure about a SERVICE pension but as far as your sate pension,(payable at age 65), yes, it will NOT be index linked.
This is currently the subject of a court case in the UK, the UK rule only applies to certain countries and is very discriminatory.
By the time you reach 65 the problem may have gone away.
Try this: http://www.britishpensions.org.au
Best of luck.
This is currently the subject of a court case in the UK, the UK rule only applies to certain countries and is very discriminatory.
By the time you reach 65 the problem may have gone away.
Try this: http://www.britishpensions.org.au
Best of luck.
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Thanks for the replies.
I'll give the pensions section at PMC a ring on Monday and see what they say.
As to the Old Age Pension problem going away, being ‘contracted out’ I hadn't reckoned on my OAP being worth very much in the first place. With the aging population I doubt if any government can afford a decent pension. I suppose Australia may be in a better position as they limit immigration to younger people to reduce the effects of an aging population.
Regards
I'll give the pensions section at PMC a ring on Monday and see what they say.
As to the Old Age Pension problem going away, being ‘contracted out’ I hadn't reckoned on my OAP being worth very much in the first place. With the aging population I doubt if any government can afford a decent pension. I suppose Australia may be in a better position as they limit immigration to younger people to reduce the effects of an aging population.
Regards
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madasacow
I am curently in the process of moving to Australia and was given this link by a contact at the Aus Dept of Defence. These guys should be able to give you some information on all aspects of moving your pension.
www.comsuper.gov.au
ComSuper
PO Box 22
Belconnen ACT 2616
AUSTRALIA
EO
I am curently in the process of moving to Australia and was given this link by a contact at the Aus Dept of Defence. These guys should be able to give you some information on all aspects of moving your pension.
www.comsuper.gov.au
ComSuper
PO Box 22
Belconnen ACT 2616
AUSTRALIA
EO
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Thanks for the links, the Montfort one looks quite interesting.
I suppose NZ would be OK but our family is in Aus!
Spoke to the horses’ mouth today at Insworth. The chap assured me that the service pension was unaffected and would be indexed as normal.
He explained that Tax would be paid at standard UK rates on the pension before it was sent overseas
. This seems to contradict L J R but I expect L J R may be aware of more of the subtleties of the Australian tax system than the Insworth bod.
Regards
I suppose NZ would be OK but our family is in Aus!
Spoke to the horses’ mouth today at Insworth. The chap assured me that the service pension was unaffected and would be indexed as normal.
He explained that Tax would be paid at standard UK rates on the pension before it was sent overseas
. This seems to contradict L J R but I expect L J R may be aware of more of the subtleties of the Australian tax system than the Insworth bod.Regards
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I don't understand how it can be taxed by HMG if you are resident in another country? Surely it should be taxed by that country instead.
Anybody shed light on this? - What about France/Spain?
HPT
Anybody shed light on this? - What about France/Spain?
HPT
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HPT,
I believe if you pay tax in the UK, you will not have to pay tax in Aus - it's the mutual tax agreement as LJR says. However I would take professional advice before departing these shores - it may be expensive advice but it could save a fortune.
Planning to emigrate to France/Spain HPT??
GB
I believe if you pay tax in the UK, you will not have to pay tax in Aus - it's the mutual tax agreement as LJR says. However I would take professional advice before departing these shores - it may be expensive advice but it could save a fortune.
Planning to emigrate to France/Spain HPT??
GB
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I rteired from RAF some 18-months ago at age 55 and returned to NZ, from whence I came some 33 years previously. My Service pension was paid after UK tax until I provided proof to UK IR that I had declared the income to NZ IRD. Thereafter, all UK tax was refunded and pension paid gross and annual index linkage is appied. I could have elected to continue with UK tax and this would have been applied as a tax credit after NZ IRD had calculated my liability on worldwide earnings - thus, no advantage. As I am now self-employed it is better and easier to deal with one authority so that losses can be applied aginst total earnings.
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On the issue of Tax, yes I believe that it is taxed upon receipt and payment, you then have to ask for a refund in a yearly request or statement to the Inland Revenue. As advised above, get your accountant to pursue this each year.
My Accoutant advised me of the Aus perspective and said it is reciprocal.
I am not a financial Guru or advisor. I highly recommend you get one.
My Accoutant advised me of the Aus perspective and said it is reciprocal.
I am not a financial Guru or advisor. I highly recommend you get one.
TOOM, I seem to remember that the service pension could only be paid into a UK bank account. Do you suffer under that restriction, and if not, without getting into personal details, how do you arrange money transfers, who pays the costs, do you do it once a year or every month?
I'd apreciate the benefit of your experience.
I'd apreciate the benefit of your experience.
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We have recently purchased a house in France. My information from "Paymaster" is that the UK Government reserves the right to tax UK Government Service Pensions itself. If there is a dual taxation treaty then the country in which you are resident will not tax the pension as it is subject to UK tax.
If you do not maintain a UK Bank Account then they they can make your Pension payments to your Bank Account in your Country of residence in local currency.
Give "Paymaster" a call on 01293 604020
If you do not maintain a UK Bank Account then they they can make your Pension payments to your Bank Account in your Country of residence in local currency.
Give "Paymaster" a call on 01293 604020
Last edited by kilo52; 4th Sep 2002 at 16:36.
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Paymaster General will pay Service Pension into a foreign bank but I don't know what excahnge rate is used - assume PG pays in Sterling and foreign bank selects exchange rate. Because I still have investments to cover in UK, I have mine paid into UK bank and transfer, as required, by personal cheque to local bank who have agreed a slightly preferential rate of exchange and, more importantly, to credit immedaiately in NZ$.
As indicated earlier, if there is a reciprocal tax agreement with country of residence, UK will pay Pension free of UK tax PROVIDED income is declared to tax authority of country of residence. In other words - some govt is going to get a hunk of your pension!
kilo52 makes a good rec - speak with Paymaster General. Though rest assured it ain't as complicated as it might appear or, indeed, the bureaucrats could make it if they really tried. Quite a suprise that!
Work to Retire, Retire to Work!!!!!!!
Paymaster General will pay Service Pension into a foreign bank but I don't know what excahnge rate is used - assume PG pays in Sterling and foreign bank selects exchange rate. Because I still have investments to cover in UK, I have mine paid into UK bank and transfer, as required, by personal cheque to local bank who have agreed a slightly preferential rate of exchange and, more importantly, to credit immedaiately in NZ$.
As indicated earlier, if there is a reciprocal tax agreement with country of residence, UK will pay Pension free of UK tax PROVIDED income is declared to tax authority of country of residence. In other words - some govt is going to get a hunk of your pension!
kilo52 makes a good rec - speak with Paymaster General. Though rest assured it ain't as complicated as it might appear or, indeed, the bureaucrats could make it if they really tried. Quite a suprise that!
Work to Retire, Retire to Work!!!!!!!
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I, and a number of friends who have money in the UK use our Visa card to draw it down here in Australia, the exchange rate is competative and it is soooo easy!
Just ensure your card allows you to make withdrawls overseas.
Just ensure your card allows you to make withdrawls overseas.
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I've found that the rates I've been charged using my UK card in Europe has never been that great.
Do you use a UK or Aus issued card? Have you compared this to the bank exchange rates and do you get charged extra for an overseas transaction?
Regards
MAAC
Do you use a UK or Aus issued card? Have you compared this to the bank exchange rates and do you get charged extra for an overseas transaction?
Regards
MAAC