I have lived in London for eighteen years now having moved down from Aberdeen in Scotland when I finished nurse training. I have never regretted moving here and cannot imagine living anywhere else in the UK. But WOW is it expensive!!!



My dream of retirement at 60 is constantly under threat with the governement pension review. Currently the National Health Service pension is still a final salary scheme, and I shall have thirty five years service in at 60 (twelve years and nine months to go.......Ha! Ha!).



My dream is still to spend the winter months in Thailand and summer in London, so I would not give up my property. I have one friend who has retired early at fifty two on a reduced pension, who intends to sell up and move to live in Thailand in the new year. I do worry about him, as he seems to have a budget of about 50-60,000 Baht a month to live on, but I really hope it works out for him and he enjoys his early retirement (envious? me?).



I travel to Thailand on 1st January for two weeks. I am planning to propose to my boyfriend, and talk about him coming to live in the UK, so all my plans could change.....

Your a very lucky man Tricky,you can get a job anywhere in the world as a nurse.Even Australia advertise in your country for nurses.Every nurse in a Sydney hosp is either a pommy backpacker,irish,scottish or filipino,and canadians.

Where are our aussie nurses?

Sydney is desperately short of registered nurses.You lucky bastard,then again i wouldnt want to wash people,take them to the toilet,wipe their behinds,feed them.No mate you can have your job.

is trying to raise the retirement age in the UK from 60.



This is really a slap in the face for those who have worked all their lives and very unfair..changing the rules in mid-stream.



Isn't it time you rid yourselves of these bogus "New Labour" lot ?

Pearl honey, it is worse than that! The pension commission reprt which is due out has recommended raising the state retirement pension age from 65 to 67. The public sector pension scheme for the NHS has 60 as the retirement age at which you can claim your full pension entitlement, but the threat is to raise that to 65, which they have done for new entrants to the scheme, but say they may do to those of us already in the scheme!!! They were defeated, and say that we are OK for now, but there is constantly stuff around about the "looming pension crisis".



It is true to say that the scheme is generous, based on best final salary in the last three years of working life, giving an annual pension and also a tax free lump sum equivalent to three years pension. With an ageing population, less younger people working and paying tax, and increasing life expectancy, it does not take a genius to work out that pensions are going to cost the country more in future years.  

The good thing about the UK is that it is one of the highest paid places in the world.  My mother says that over the past 20 years the standard of living has increased dramatically, i.e. 20 years ago she had to save to buy goodies, she says she can now afford to buy almost anything she wants out of her salary each month.



If Thailand is "relative", can we say the same thing - no I bet we cannot.



With regard to the state pension age goin up to 67, if one wants to live in Pattaya then they should save earlier on in life, there is nothing stopping a 25 year old putting a little away in order that he/she can retire in their early 40's or late 30's



Im now on 60,000 UK a year and I'm just touching 30 so that aint bad, and can put a lot away of that each year.



Remember the state pension is only part of a whole range of pensions.  Infact if anyone has opted out of their SERPES contributions, you can draw that out at 60.



And if one puts money into an AVC each month you can get full 100% tax relief, i.e. if you pay 100 pounds into a scheme if you pay 40% tax you get this back, so you are actually only paying 60 pounds.



The bottom line is think wise, start early and you neednt wait till your 67 to retire and enjoy your life in Pattaya.

I guess how much you can put away each year depends on where you live. I have to pay into a pension fund but won't get anything out of it until I'm 73! And there is no opting out.

I have Australia friends who tell me that they compulsorily have to pay into a superannuation fund, that they pay 15% tax on deposits into the fund, and that if their deposits exceed a certain government-approved level, then they have to have 30% tax on the extra - and that is after paying income tax in the first place. Moreover, although they are paying taxes they will not receive a state pension because they have too many assets. Perhaps vbbb can explain?  

homintern is on your IGNORE list.

for the explanation. Still, the tax rates do seem to me to be high - if they are on deposits on which income tax has already been paid, that is!  Out of curiosity, what is the level of the " inflation-adjusted maximum-benefits" level?  

For all the info you want regarding the Australian Tax and Superannuation, this website is the best place to go

www.ato.gov.au/super/



Homitern I got it from google.

Thanks to Gone Fishing for his calculations regarding expenses. Gives me hope!



G

In Australia the employer must pay 9 per cent of your gross wages into a superanuation fund,this is the law.

This is on top of your gross wages.For eg,if my wages was  say $1000 per week,my employer has to pay a additional 9 per cent on top of that to a superanuation fund,showing the taxation office every year they are  paying it.

So it would be $90 a week they have to pay additionally.

Every employee whether part time,casual is entitled to superanuation,the compulsory 9 per cent on top of their hourly rate,or yearly salary,weekly wage etc.

Im not aware of tax on that contribution unless the employer pays it?

However if i as a employee want to put money into my superanuation fund in addition to my employers 9 per cent,it will be taxed at 15 per cent per personal contribution.I cannot get access to myemployers 9 per cent money until im 60 yo.

Or 55yo for my personal only contributions.There is no state pension,it is the federal govt that pay the old age pension,the current age is 65yo.You must remember superanuation only started in 1987 here so many retirees still rely on the old age pension to survive.Before 1992 you could of taken your superanuation as a lump sum meaning most took away about $200,000 ,however the govt stopped this making you take it as a weekly/monthly cheque over 20 years so that way you dont draw on the old age pension.

I dont think its smart to put personal contributions into your superanaution,far better to buy property etc,and sell it when your older,that way you can get the old age pension and getting the free medical and transport benefits that go with it.

 

Vbbb is certainly sounding more intelligent these days.  Has he had a brain transplant?

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far better to buy property etc,and sell it when your older,that way you can get the old age pension

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First VBBB you have to understand capitals gains tax. When you sell the property half the difference between purchase and sale price is taxable at your level of taxation



Second you need to become aware of the asset and income test for the old age pension. You cant have your cake and eat it too



Your comment about putting additional money into super is not well thought out. If you are earning less than $40,000pa then the Govt will match your additional  contributions .

The fund pays the 15% taxation contribution tax and tax on the earnings of the fund.

If you are earning over $40,000 then the low rate of taxation in the fund can be very attractive as it is tax free to you. Have you looked at salary sacrifice.



You could invest all your spare money overseas and hope the Govt does not catch you. But if you do not have the capital to pay

the full cost of the property, getting finance might not be easy.

Im pretty sure capital gains tax is only applied to investment properties when you are selling with less than 12 months ownership.I have several apartments which i have held for some years.During the property boom,people were buying waiting several months then selling ,which they would have to pay capital gains tax.You also have stamp duty tax.The vendor tax was also on top of this before it was quashed earlier this year.

Salary Sacrifice has benefits,but your contributions are still taxed at 15 per cent.Then i believe at the moment you are taxed again when getting it when you retire.

I prefer buying investment properties even though the market has declined particulary in Sydney.However suburbs interstate particulary in Adelaide are starting to increase.

I am finding the banks not wanting to lend money on studio apartments less than 35 sqm which is a pain in the neck for me considering there is a high rental demand in the Sydney City area for these,so i am waiting their reply to tell me why they dont lend money on apartments less than 35 sqm.

Investing in Pattaya has been on my mind for some time,particularly commercial properties,however the red tape to get started has put me off.However i may consider looking at a 1 bedroom apartment in the view talay buildings for the future even though i would rely on a rental return for some years before i retire.

 

Edited by: vbbb at: 29/11/05 12:45 am

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Im pretty sure capital gains tax is only applied to investment properties than you are selling with less than 12 months ownership.

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Capital gains tax applies to the sale of all property other than your principal place of residence

That is the place you are living in

If you build up a portfolio of property , even if you keep them all and dont sell, you also get hit with land tax