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A good website to view is
http://www.seniors.gov.au/ where I
found this quote:
There is no statutory retirement age in Australia. Currently, very few
Australians over 50 wait until qualifying for the Age Pension before retiring. A
recent Australian Bureau of Statistics (ABS) survey found that around 76% of men
had retired before 63 and 76% of women had retired before the age of 60.
Pensions/Superannuation
Most Australian workers will be building their
own superannuation up from the Compulsory Super Payments that their employers
are making on their behalf. This is currently at the rate of 9% on top of
the persons Salary, as long as they earn more than $450 a month. When
being given a salary package figure, ask if the 9% super is on top of the total
figure given, as some employers may include it in that figure.
A Government website for superannuation is
Superchoice.gov.au and
Superannuation - The Big Picture
NOTE:
Employers’ superannuation guarantee obligations
therefore would only be calculated against ordinary time earnings. Payments
for overtime are not considered to be ordinary time earnings.
ATO Link
Government Assistance with Super
Contributions
There is a scheme for some employed people
called
Super Co-contribution where the government pay something to top up your own
personal superannuation contributions. One of the conditions (2004-2007)
includes that your gross income must be at least $28,000 and less than $58,000
pa. You get the maximum benefit if your income is $28,000.
Personal superannuation contributions are the
amounts you choose to contribute to your superannuation fund from your after tax
income. This is in addition to any employer contributions and any contributions
made through a salary sacrifice arrangement.
When do you qualify for the Government funded Age Pension ?
Men qualify for an Age Pension at 65 years or over.
Depending on their date of birth, women qualify for Age Pension at different
ages. By 2014, the minimum qualifying age for women will be 65 years, making it
the same for everyone.
What Residence Requirements does the Government Age Pension have?
To lodge a claim and qualify for Age Pension,
you must be:
- in Australia on the day you lodge your claim,
- an Australian resident,
- have lived in Australia for long enough to
satisfy qualifying residence periods (normally TEN years). Note: there are some exemptions.
- Have Income below the threshold.
Under the
Income Test, a single person earning less than less than $132 per
fortnight may be entitled to the FULL pension which reduces to NIL when they
reach $1513.50 per fortnight. (Apr 2008 figures).
- Have Assets below the threshold.
Under the
Assets test, if a homeowner has more than $535,250 in assets, as well as
their home, they will not be entitled to any of the Government pension, but
could be entitled to the full pension even with up to $166,750 in other
assets.
These following figures are valid at April 2008. Full Information from
Centrelink
Current Government pension payments are:
$546.80 per fortnight for a single person, or $456.80 each for a couple,
PLUS the following additional payments and benefits that people may
be entitled to:
Current Maximum Values of the above are:
Single Person Pension $546.80 per fortnight
Rent assistance $107.20 per fortnight
Utilities Allowance $125 paid every three months
Telephone Allowance $22 paid every three months
Pharmaceutical Allowance $5.80 a fortnight
UK Pensions
Government Pension
- The UK Government age pension can be paid to
you in Australia, on reaching Retirement age. The amount of the pension payment will be frozen at the rate
in force at the date of entitlement, or the date the person left the UK if they
were already a pensioner at that time. However, if you return to live in the UK,
you’ll receive a State Pension with all of the indexation increases.
www.direct.gov.au and The
Pension Service UK
- If you live outside the UK and want a State
Pension Forecast contact Inland
Revenue Centre for Non-Residents.
UK Pension Service: Frequently asked questions for Living overseas:
- If you are eligible for the Australian age
pension, it may be reduced when your UK pension is taken into account,
depending on the above mentioned Income Test.
UK National Insurance
Contributions whilst Overseas
- These are dealt with by the
HM Revenue & Customs
- If you live abroad or are intending to go
abroad, you may in certain circumstances, pay Class 2 contributions
voluntarily instead of Class 3 contributions. See leaflet
NI 38 Social Security
abroad for more information.
- The weekly Class 2 contribution rate for
2004-2005 was £2.05, whereas the weekly Class 3 contribution rate was £7.15.
From 6 April 2000 paying Class 2 NI contributions are less expensive than
Class 3, and they can help you satisfy the contribution conditions to qualify
for Incapacity Benefit or Maternity Allowance when you return to the UK. They
will also help protect your entitlement to State Pension and bereavement
benefits which can be paid anywhere abroad.
Private Pensions
This can be a tricky area, and professional
help is often needed. (More info will follow as I locate it)
Companies that specialise in
transferring Private UK pension funds
The above info is a provided as an
information source only, I have no knowledge of how the companies perform.
Transferring UK Super after
April 6th 2006:
Changes to
UK Pension Transfers
On 6 April 2006,
as part of major pension reforms in the UK, a relevant UK regulations becomes
effective.
From 6th April
2006, any money transferred from a UK registered pension scheme to an
Australian Super fund will be subject to a tax of 40%, payable to the UK
authority unless the Australian fund is a "qualifying recognised overseas
pension scheme" (QROPS).
For an Australian
superannuation fund to become a QROPS imposes a significant administration
burden on the Australian Super Fund, requiring it to report to the UK
regulators when rollovers, pensions or ETP's are made from its fund.
The costs
involved in complying with these requirements are not insignificant, and there
are also ongoing compliance and regulatory risks involved when complying with
overseas jurisdictions.
Australian Super
funds may decide not to become a qualifying recognised overseas pension
schemes.
A PDF file on the subject is available at: ukpensionchanges
Links
Useful Reading
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