the australian £250k lifetime allowance

The Australian £250k Lifetime Allowance: How Will It Affect Expats?

Source: www.expatfocus.com

‘After-tax' contributions“The Australian government has set a limit of $500,000 (around £250,000) for non-concessional contributions, known as 'after-tax' contributions, for anyone contributing to an Australian pension.”

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Source: www.expatfocus.com

Large contributions

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“The idea is aimed at catching Australians who were boosting their pension funds with large contributions, particularly with the proceeds of a house sale, which they could then draw down as a tax free sum.”

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Source: www.expatfocus.com

The Australian pension savings cap“The Australian government imposed limit amounts of £250,000 over a lifetime and this will be retrospectively calculated for all pension funds dating back to 1 July 2007.“4

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Source: www.expatfocus.com

Financial advisers

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“As with all financial advice, expats should seek an experienced financial adviser and while many firms in the UK are not equipped to give advice on Australian pensions, there are specialists available who can do so.”

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Source: www.expatfocus.com

UK faces dwindling rate of savings “The UK is facing a dwindling rate of savings and an ageing population. The rules on accessing retirement pots were changed in April 2015 to give savers unrestricted access so they can put their money to better effect or even spend it on whatever they fancy.“

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Source: www.expatfocus.com

Retiring to Australia

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“For expats looking to retire to Australia there's no doubt that the changes have had a dramatic effect on their retirement dreams. They will need rethink their plans and what they will do with their excess savings…”

Source: www.expatfocus.com

Underprepared baby boomers

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“There are regular reports that many of Australia's 5.5 million baby boomers, those born between 1946 and 1965, are simply underprepared for their retirement. As these people near retirement age, the government in Australia is striving to ensure they save enough to enjoy their non-working years.”

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