Hope You Don't Mind an Aussie asking...

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...random quesions about Australian superannuation! I don't know that any of you will know the answer, but you're a clever bunch so you never know...

here goes...

I am early 30's and have been living in the UK for 7 years now. I have a pension fund set up over here through my employer.

I have a couple of Superannuation funds set up in Australia from working age 19 - 26, one of which has approx $13,000.

At the moment I don't have plans to return to Australia - at the moment...- but may do in the future - I don't know yet!

I am concerned my Australia funds will dwindle to nothing as I'm obviously not paying into them whilst working in the UK. My super funds in Australia are also decreasing due to the fees that are placed on my super accounts each year.

My Aussie super company say they don't allow members to transfer money to UK pensions. My current UK pension company (it's a very good pension) say they don't allow any Australian super funds in...

I am really stuck as to know what to do?

I feel like all the money I put into my Super funds in Australia will gradually dwindle to nothing and yet I can't transfer them nor touch them - as I mentioend I am early 30's so nowhere near to retirement age.
Can anyone offer any advice as to what I should do?

Many thanks
GJ x

EdInvestor

Can you find any better Aussie pension providers who charge lower fees and then transfer the Super funds to them?

ozzage

I'm in an extremely similar situation, having left Oz in 2004 and not really planning to return. I actually just tracked down my old Aussie super recently, and would also like to figure out what to do with it! But so far besides giving me the value the provider (Tower Australia - was Tower Life) hasn't been very helpful.

They quoted me the following figures:

Account Balance $27,273.49
Exit Fees $2,181.28
Surrender Value $25,092.21

Which suggests that I can get my money out, but I've got no more info than that as yet. I'm interested to hear if you learn anything.

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Hi.. you can get your money out - however, it doesn't become yours unless you are retirement age or relinquish your Aussie citizenship..

EdInvestor - yes I probably could swap - however, in pretty much same boat - less fees but even small fees will make it dwindle to nothing when I reach retirement age in another 25ish years!

ozzage - can you contact Tower Australia and see what they say...- I am with HostPlus...and they're not playing ball at all....

Any other advice?

EdInvestor

GoldenJill wrote: »

EdInvestor - yes I probably could swap - however, in pretty much same boat - less fees but even small fees will make it dwindle to nothing when I reach retirement age in another 25ish years!

Not sure why you think that. If you get an average net return on your fund of 5% and p.a pay annual fees of 1%, obviously you will enjoy compound growth of 4%.

IIRC there is a tax take on Oz invested super funds but you are surely not saying that charges and taxes are in excess of 6-7% per annum are you?

What is your money invested in,what is the forecast return and what are the annual taxes and charges?That's what you need to find out.