What to Consider When Receiving Your Pension Abroad?
At OFX, we think it’s important to enjoy the fruits of your labour. When entering the next chapter in your life there’s always plenty to look forward to, but it’s important to make sure you’re well-prepared. Below are some tips on how to save money, and general considerations to make when receiving your pension from abroad.
- If you’ve moved to Australia and you’re planning on having your pension rerouted to your Australian bank by the state, you may have to wait for a considerable period of time according to the NationalSeniors’ Age Pension Portability FactSheet. Ensure you’re financially comfortable during that time by moving your savings or receiving help from others.
- Australia has Social Security Agreements with 30 countries that make rerouting your pension easier. Beware, however: a large number of countries fall outside of these agreements, including the UK. Be sure to check the list of eligible countries on the Human Services website.
- If you’re sending the proceeds of your state pension to Australia via your bank’s international money transfer service, you could be receiving less of your pension than you would through a specialist money transfer service. Compare your bank’s exchange rate with our OFX Currency Converter to see how much you could save.
- Your pension isn’t the only thing you could save money on. Consider sending your savings and investments in a lump sum using a limit order, or monthly through our regular payment option.
- Providing you’ve been a resident of Australia for more than ten years, the Australian Government website indicates you may be eligible for an Australian Age Pension to help top up your overseas pension. The pension is means tested and doesn’t rely on any previous contribution on your part.
- If you do receive an Australian Age Pension (see above), you could be entitled to benefits like a Pensioner Concession Card and a Commonwealth Senior Health Card. Visit HumanServices.gov.au to find more ways to save money.
- Britons may have to make arrangements to draw any UK pension they have before they can gain access to any Australian Pension. Get in touch with the UK’s Department for Work and Pensions for detailed information.
- For those nearing retirement age, you may still be able to contribute to your future pension with a limit of up to five or six years. Look into voluntary National Insurance here.
- Sheridan is one of our customers who decided to send more than her pension, saving money in the process. When sending savings or proceeds of investments, ensure you get the best rate possible to make the most of your pension.
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