Retirement Pension Income in Australia
The Australian Retirement pension consists of two possible parts:
The Government Aged Pension Benefit, paid by Centrelink (the welfare system).
The compulsory Employer Paid Super scheme.
The British Retirement pension consists of two possible parts:
The Government Aged Pension Benefit, paid by the British welfare system.
The optional Private Pension scheme.
The above makes things look similar, however there are some notable differences.
- The Government Aged Pension Benefit is means tested in Australia, but it is available to all in the UK, regardless of income or assets.
- Every worker in Australia will, at retirement, be expected to have their own Private Pension, funded by their Employers, throughout their working lives.
Australian Age Pension payment rates
The Maximum basic rate is $782.20 per fortnight for a Single Person or $589.60 per fortnight for a partner in a couple.
There are supplements to increase these payments to $860.20 and $648.40 respectively.
[As at August 2015]
British Age Pension payment rates
( Weekly) as at 2015/2016: www.gov.uk
- The full new State Pension will be no less than £151.25 per week. The actual amount will be set in autumn 2015.
In Australia the State Aged Pension is funded from Taxpayer Funds, and paid by Centrelink, who also pay Unemployment Benefits etc.
In the UK, the State Aged Pension is at least partially funded from National Insurance contributions, paid by yourself and your Employer.
I have been told by some people that the above is wrong, however, from the UK government:
You can decide to stop paying NI contributions if both of the following apply: source
- you are paying voluntary National Insurance contributions because you are not working.
- you have enough qualifying years to get a full basic State Pension.