Decision Time 2016. Crunch Time Now Or Later?

[chris49]

Will you still receive your US pension while on the Aussie pension? 

 

Tom. I earned the US Pension by working and contributing. It could not be affected unless other earnings put me over the tax threshold. US and Australia have a Tax Treaty not to expose earnings to double taxation, even if under the the tax limit.

 

However, since you asked. Australia has a penalty for foreign earnings if receiving a government pension. There is a complex formula of exemptions and income limits. $162 AUD is exempted each fortnight. A penalty of 50 cents in one dollar is imposed on earnings over $162.

 

In layman's terms there is a deduction of about $150 each fortnight, but it can be further offset by the number of dependents you are responsible for.

[Jack Peterson]

 Through all this there is something I just don't Understand. OK, so you earned a pension from the US by working and Contributing but I don't Understand how you are Entitled to an OZ one when you were not in OZ working.

 

Just Asking here.

 

Jack :unsure:

[stevewool]

Chris, good luck in what you decide, I cannot say much more then that my friend

[chris49]

 Through all this there is something I just don't Understand. OK, so you earned a pension from the US by working and Contributing but I don't Understand how you are Entitled to an OZ one when you were not in OZ working.

 

Just Asking here.

 

Jack :unsure:

 

i paid taxes despite not living there. And I did have a small business running and we paid taxes off that. 

 

But an Aussie Pension is not based on that. Aussie pension is assets based, the more assets you have the less is your pension.and as you can see from the above discussion, the pension is residency based (and in that sense complicated). 

[chris49]

However, since you asked. Australia has a penalty for foreign earnings if receiving a government pension. There is a complex formula of exemptions and income limits. $162 AUD is exempted each fortnight. A penalty of 50 cents in one dollar is imposed on earnings over $162. In layman's terms there is a deduction of about $150 each fortnight, but it can be further offset by the number of dependents you are responsible for.

 

That may invite more questions.

 

If living in Australia a Pensioner gets over $200 each fortnight in supplements. Rent Assistance, Pension Supplement and Energy Allowance....so all these additions plus some exemptions would offset the penalties.

 

If not living in Australia but drawing the pension, those supplements would not apply.

[Old55]

Chris, I read through the whole thread. Is there any way you could somehow all move to Australia? I know the cost of living there would be huge but there are also benefits 

[Jack Peterson]

Chris, I read through the whole thread. Is there any way you could somehow all move to Australia? I know the cost of living there would be huge but there are also benefits 

Absolutely Brilliant Idea and one I would think Chris is actively pursuing but do you not think that the Cost would outweigh the Current Situation even with the additional pension when he gets it. Reading between a lot of lines on different Posts, if the Aus Governement are anything like the UK, those Benefits will be a fair while coming.

 

@ Chris, We spoke last night at dinner ( the family) and we all agree this is a very Big headache for you. I did this in 2010 and returned to Spain to chase the Extra cash, being on my own was not good and living as a Single man but sending Home money took it's Toll,

I had the Stroke in 2012 ( bad eating and Such) living well below how I should have and in the End I was very little better off in my Pocket. I was also reminded that whist I was away those two years ALL our Attitudes changed, Our Daughter turned into a Teenager, It was like we were Strangers again. Something you have to think about. But as we will say it will be your Decision and I think you know we will all be rooting for you. Above all Chris please take care of the health ( We know you will be a bad patient) None of us are getting any Younger to place too much Stress on our lives and Stressful it will be My Friend.

 

Best of Luck mate I envy you not on this problem  :)

 

Jack :thumbsup:

[Old55]

Well this maybe kinda beyond my business but Chris could keep the young ones going and Gina could work? I have no idea how visa work permits so on would play out in Australia.

 

Just my 2 cents, having the family together is the most important thing. Although I completely understand the situation Chris is in.

I know life is good living in Philippines but there are some real advantages for the children living in US or Australia. That being just my opinion. 

[jpbago]

  If you do go to Oz, you need to plan soon to take your family with you. If you stay here, you will be with your family. Either way, it is best to be with your family. At your age, 2 years is like 10 years. The world has lost two noted men this past week, both in their 60's, David Bowie and Glen Frey of the Eagles. Going for 6 months would be a waste of time and money. You have to make a decision and stick to it.

 

the other jp

[Dave Hounddriver]

Chris, I read through the whole thread. Is there any way you could somehow all move to Australia? I know the cost of living there would be huge but there are also benefits 

Asked and answered on the first page  :tiphat:

Our government has a penalty clause for that.  My pension is on single status, a larger amount.   If i sponsor Gina for immigration, the pension reverts to the married rate.Significantly lower.It is assumed that both parties will draw the Age Pension at some point. They do not consider her age and that she's 40 years from pension age.