Australian pension

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Australian pension

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  #1 (permalink)  
Old 07-09-2019, 10:47 PM
Senior Member
Join Date: Jan 2018
Posts: 104
Users Flag! From uk

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Question Australian pension

Hi to you all,

I would like a general guide to how the Australian pension works and is it different to the UK pension?

Just wanted to know how it all works!

Thanks in advance.

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Old 07-10-2019, 12:10 AM
Senior Member
Join Date: Jul 2015
Location: Australlia
Posts: 5,948
Users Flag! From australia

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Originally Posted by Australiaherewecome! View Post
Hi to you all,

I would like a general guide to how the Australian pension works and is it different to the UK pension?

Just wanted to know how it all works!

Thanks in advance.
Very different.

The Australian aged pension is welfare based. It is designed to give you a basic amount to just about live on. (Just about liveable, if you own your own house at retirement)
It is calculated based on your total (couple combined) other income, and reduced by any excess income. It also has a residency period requirement (10 years).
The qualifying age is now 66 years.
From 1 July 2021, the qualifying age will increase to 66 years and 6 months.
From 1 July 2023, the qualifying age will increase to 67 years.
The Australian pension rises each year, to keep pace with inflation (maybe).

The UK pension, being paid for during your working life, is calculated based on your NI contributions. It is not reduced based on your income.
The UK pension is frozen at the same rate, that you first receive it, for ever, unless you move to the UK or some other countries (like the Philippines), where it rises each year with inflation.

The UK aged pension can be easily paid into an Australian bank account with no fees charged.

Examples of actual GBP-AUD Exchange Rates used for receipt of the UK pension into Australia have been:

1.830812745 17 June 2019
1.848187486 20 May 2019
How Much is a UK Pension worth in Australia?

To be eligible for the Australian aged pension, you need to be a Australian resident for a total of at least 10 years, with at least five of these years in one period.

Any eligible overseas pension must be applied for, and the rate will be taken into account when calculating the Australian Payment rate.

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