UK state pensions frozen for ex pats in Oz........sign the petition !

[Chardy]

This affects all of us who have paid our NI in the UK for years. If you had moved to Spain your pension is safe but some Commonwealth counties like Australia are not - from the time you leave the UK your stat pension will be frozen and you will lose out on it's growth.

Sign the petition here: http://epetitions.direct.gov.uk/petitions/16387

[StraighttothePoint]

[YOUTUBE][/YOUTUBE]

This affects all of us who have paid our NI in the UK for years. If you had moved to Spain your pension is safe but some Commonwealth counties like Australia are not - from the time you leave the UK your stat pension will be frozen and you will lose out on it's growth.

Sign the petition here: http://epetitions.direct.gov.uk/petitions/16387

 

Like many others who use this site I deserted my country of birth to re-locate to Australia. When I was in the process of making that decision I researched everything including the fact that State Pension age rises to 64 and 66, in our cases due to date of births, the point that any State pension paid is frozen, the fact that earning here in Oz still needed to include catering for later and so on.

 

Although it appears unfair that some countries are treated differently that is more than likely down to the tax arrangements between those countries.

 

Bottom line is this is is old news, it means a few quid more a month on a pension that hopefully will never be a main source of income, a pension that will be worthless in terms of amount by the time we get it, it will be money that is taxed because bear in mind it is classed as income and that extra income could push you into a higher tax bracket here and in the end cost you much more than you would be gaining and also again we all chose to leave for here so cest la whats it.

 

Worrying about a day that may never come and not planning for it now that you are here in Australia seems a waste of energy to me to be honest. Sort out the future on earnings here and forget the state handouts is my tactic.

[Chardy]

 

Like many others who use this site I deserted my country of birth to re-locate to Australia. When I was in the process of making that decision I researched everything including the fact that State Pension age rises to 64 and 66, in our cases due to date of births, the point that any State pension paid is frozen, the fact that earning here in Oz still needed to include catering for later and so on.

 

Although it appears unfair that some countries are treated differently that is more than likely down to the tax arrangements between those countries.

 

Bottom line is this is is old news, it means a few quid more a month on a pension that hopefully will never be a main source of income, a pension that will be worthless in terms of amount by the time we get it, it will be money that is taxed because bear in mind it is classed as income and that extra income could push you into a higher tax bracket here and in the end cost you much more than you would be gaining and also again we all chose to leave for here so cest la whats it.

 

Worrying about a day that may never come and not planning for it now that you are here in Australia seems a waste of energy to me to be honest. Sort out the future on earnings here and forget the state handouts is my tactic.

 

Well if the UK government would kindly refund my payments I'll be happy.

If I have paid into a pension (like I do my personal one now which I will simply transfer to Oz next year) I expect to get the payout when the time comes regardless of how little it is - is that so wrong ??

I may have come to dislike the UK but I have worked hard here for 25 years supporting both the public and private sectors, is that worth nothing ??

[ali]

When we moved in 2007 I was told that I would only get a pension at the rate it was when I left the country

[StraighttothePoint]

Well if the UK government would kindly refund my payments I'll be happy.

If I have paid into a pension (like I do my personal one now which I will simply transfer to Oz next year) I expect to get the payout when the time comes regardless of how little it is - is that so wrong ??

I may have come to dislike the UK but I have worked hard here for 25 years supporting both the public and private sectors, is that worth nothing ??

 

No it is not worth nothing and dont think that is what I said or implied. What you are hoping for now is more than the deal that is in place if you keave the UK now and you good luck to you if you get that changed. All I am saying is that not everyone will agree with your stance for various reasons. I have done the math and honestly it is not worth worrying about.

 

As for the point about asking for your money back. Well that is like I'm not playing anymore and I am taking my ball with me Everyone's financial situation is different when emigrating, and the State Pension issue is one of a 100 things that some of us oldies may need to consider, but if it is that much of a priority then may be you need to petition for a change. Good luck with that by the way. As for others it is a non issue.

[phil]

... my personal one now which I will simply transfer to Oz next year...

I've been advised to get mine over here soonest - once it's been 6 months since leaving the UK, the tax man will help himself to (albeit small) amounts when it is eventually transferred.

[StraighttothePoint]

I've been advised to get mine over here soonest - once it's been 6 months since leaving the UK, the tax man will help himself to (albeit small) amounts when it is eventually transferred.

 

Phil was the advice you received at this end or in the UK before you left? If it was here then I would assume the advice would be bring it because if a company and/or agent arranges that transfer for you could be getting a % of the sum involved as commission.

 

The information that would be interesting is what are the tax implications if you leave your personal pension in the UK, and it matures / is paid out, when you are a resident of Australia and you pay tax here? I would have thought that a part of it would be seen as tax free (as some pension elements are?) and the rest would may be seen as income and therefore taxed. Does anybody know or has anybody faced that?

 

If it has been brought over and rolled into a super fund then the usual taxes would apply. I have trawled these boards and cannot see anything definitive.

 

Comments about bringing your pension over now have been posted, e.g. poor exchange rates, is super that good really, what happens if I go back to the UK, what happens when I retire if I spend more time in the UK than here and revert to UK tax and so on. All these comments pointed to a negative reason for bringing your pension over within the first six months. Not sure either way to be honest because I suppose it is a personal choice based on your own circumstances and your financial position.