Question for the Brits

Hi Kerrie,

I suspect the problem with having your super transferred is that it probably is being *paid out* [ as you have said ] rather than transferred. You should incur no tax on a super/pension transfer. I would try to contact the ATO [ ato.gov.au ] and see if there is any opportunity for this *pay out* to be deemed a transfer or *rollover* as they call it here.

I would seriously leaving it rather than have it double-taxed. At 60 something it should be all your tax free. But please don't take my advice there are others more qualified.

Thanks for the tip about Karratha.

I am in the process of trying to have my supers paid out / transferred to Uk pension. I was advised that I will be taxed (highest bracket). Unless I was misinformed by ANZ / Recruitment fund and the Govn super they are still double dipping. Maybe just applied to non citizens.

If you think the prices in Perth are high you should seriously consider purchasing in Karratha. The house I left was being rented for $900 - $1200 per week. It was 2 years old, 4x2 but nothing fancy - no garage, no pool and not a big yard. There is a severe lack of houses and it is an owners market.

hi there eviloops.... Doris here... would you mind telling me which company you are using for your private pension? As an British expat i always thought our choices were some what limited. would be very grateful for your feedback on the matter. cheers!

Aussie Super has indeed been the topic of many discussions/rants over the years. The recent changes seem to have changed the flavour and have many financial planners suggesting it is now become a decent option. The key element that changed in the last 6 months is that - so I understand - it is now tax exempt as you draw from it.

In the past the government double dipped.

The current status seems to be that the level of contribution [ per annum ] has been increased, depending on the fund you have can have a better choice of where the funds will reside [ property trusts, international shares, etc ]. There is still a 15% tax on contribution but if offset with no further taxes then it becomes a reasonable option. Quite a few people are switching out of personal investment portfolio's such a negative gearing on property and investing large sums back into Super.

Having said all of this, I tend to think diversification is probably a good way to approach investment and we are looking at commercial property in Canada [ my spouse is Canadian ] as well some other options in Oz.

As for Perth - WOW - you have hit the jackpot there. The latest news is that Perth has the most expensive real estate in Australia - passing Sydney. I am not sure this is so good for the poor chaps trying to get into the market but for those with investments it must be a real winner for you.

Jaelee - I hear you. Aussie super is indeed rant worthy.

Have you considered setting up an offshore version/replacement, self-managed?

Yes, our investment properties are in Australia and each year we still lodge a tax return on the income/loss on these investments. But all are making a loss :-) Totally above board.

We are West Australian and the property market there has just skyrocketed over the last few years, thus we are very happy chappies. We have made excellent capital growth.

We had a self managed super fund at one stage, but had to terminate it all as we were non-residents of Australia for more than 2 years (which our accountant hadn't advised us about when he suggested we set one up ... but that's another story) however we still weren't allowed to take the money and had to roll it over in to some other super fund. That's what annoys me now about Super ... you don't have control over those funds, you are binded by what the Government dictates. Basically it's the governments money. Rant .. rant... rant...

Hi Jaelee,

I am curious - as a non-resident Australian, something I assume you are - do you purchase these properties in Australia or elsewhere?

Often property investments come with some kind of tax implication [ loss or revenue making ].

Regards,

If I was you, I would buy property. I am Australian and all the time the goal posts keep changing when it comes to accessing retirement monies , which I am sure it will in the UK too.

We have bought investment properties and have been more than satisfied with the performance of the property market over the past years. Everywhere seems to be going up, up, up. Plus you have control over your OWN money.

With the concern of not enough young people around to support the older generation, I think the aged pension will go out to 70 (as people are living longer now too).

We have money in a super fund in Aus, and can not touch it at all. (even as non-residents) If we had access to that money when we first looked at buying property and bought something with it, it would have more than tripled in value .. and outperformed any superfund.

When in Aus and working, super contributions are compulsory, so you will have a pension fund going already (if you are Australian citizens, not sure when you said you have lived in Aus 2 years if you have citizenship or not). If you have one in the UK you will have 2 super funds/pension on the go.

As someone already mentioned, you are only in your 30's ... maybe try and get a name of a really good adviser and sit down with them. My concern is as I said earlier, the rules keep changing and you have no control over that .. wheras property is yours .. regardless. But still don't put all your eggs in one basket :-)

Hope I have made sense in all my mumble jumble. Good Luck :-)

We only lived in Australia for 2 years so we can make contributions to state pension but thanks for the info Dweller.

To be honest I am more concerned about private pension as pension in UK and Super in Australia which cannot be transferred. I need to find some stability if my husband is going to trot me around the world.

I understood that retrocative contributions for the state pension in the UK could only be made for the previous 9 years or so.

Keep in mind that the retirement age is likely to increase and give a lot of consideration to whether it's worth it!

Kerrie, there IS a lottery in Qatar, it's called driving on the "C" Ring Road

My husband and I had private pensions before we left the UK but when we moved we were advised that we could not continue contributing as we were no longer residing in the country. I was under impression all companies had some policy - maybe just Zurich.

Is there a lottery in Qatar?

Kerrie

We are of Welsh origin and lived in Africa for over 22 years...my sensible father paid back his national Insurance contribution in yearly clumps as well as paying back his stamp duty as he was concerned that he would be able to claim a pension as a Brit when he retired.....

He has since returned to the UK and he is no better off...his financial advisor told him that he should have just relied on the basic state pension as that is sufficient and that his £35 000 he had paid over 22 years was money down the drain....

What you might want to do is what Im doing...apply for a private pension....I pay approx £22.50 a week for mine and it covers me sufficiently. When I retire I will also have my state pension as well as any other prearranged pension....ie. teachers pension.....This should entititle me to around £1800 in today's terms as predicted by a financial advisor...another way forward is to invest in property in the UK...At the moment it is booming and it wont come to rest as long as the Olympics is happening in 2012...get a cheap property and do it up and you will rake it when you sell it closer to the time of the Olympics... if these all fail.....I suggest you play the Lottery!!!!!

Good Luck

Kerrie,

If you do not have a private pension it is advisable to pay your stamp duty, For a male he requires 45 years of paid stamp duty to get a full pension, therefore you can have a few years off if he has been paying since he was 16? There is a good website on all this and what level of contributions you have to pay at http://www.hmrc.gov.uk/cnr/index.htm , In the end the decision is entirely based on personal circumstances. e.t.c

Even if there is a state pension when we retire it is unlikely to accurately reflect our actual contributions.

For me personally, I am not going to rely on the government but will do my own saving and investment.

If I were you I wouldn't bother paying the stamp. It would be different if you were in your 50's but in your 30's when you are 30 years away from retirement? No way!