Pension in Oz

By THIS IS MONEY
Updated:

 

I am considering emigrating to Australia. I don't have much of a UK pension yet so as a college lecturer I am paying into my employer's scheme. I am 31 and beginning to panic. What are my best options? RE, North Devon

John Minchin, independent financial adviser at Pensionline says: As regards your existing pension, you will be able to draw your state pension in Australia but it is one of the few countries in the world where state pension payments do not rise in line with price inflation, so you will always get your pension at the rate applicable when you retired.

Your employer's pension can also be paid to you in Australia and in this case it will be inflation proofed both before you retire and when you do so. However as you're only 31 the most important consideration is building up a pension pot when you are in Australia.

This is quite simple because they have a compulsory personal pension scheme to which all employers and employees are obliged to contribute so though you do not have any choice it makes pension planning simpler than in the UK.

Good luck in Auz.

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