Age Pension payments in the UK

Approaching retirement age can focus your attention on where you wish to see out the remainder of your years, but this still has to be funded. YOURLifeChoices subscriber Cliff is keen to return to the UK but would like to know which payments, if any, he will receive.

Q. Cliff

I was born in the UK in 1947 and worked in the UK between 1964 and 1969, when I immigrated to Australia. Since 1969 I have worked in Australia for the Government until quite recently. I have also been a long-term member of the Australian Army Reserve. The time is getting closer when I will reach retirement age and I would like to return to live in the UK, either permanently or on a long term temporary basis.?

I understand that to gain the pension I have to be 65 years or older when I apply and I heard that if I spend two years in Australia after gaining the pension, I can transport/transfer the pension permanently overseas. This raises a number of questions, these being:? ?

1. Will I be able to be paid the Australian Age Pension whilst I am living in the UK, or should I consider Spain for instance??

2. Will I be eligible for an Age Pension either UK or Australian if I permanently reside in the UK??

3. If I live in the UK for a long period i.e. five years plus, but keep a house in Australia does this constitute temporary UK residence, or permanent UK residence, and therefore would I still get the Age Pension??

4. Or must I remain in Australia during my retirement to gain the full Age Pension?

A. As you have several questions which need to be answered in detail, we would recommend that you make an appointment with a Centrelink Financial Information Services Officer (FIS) to discuss the impact any overseas move may have on your Age Pension payments. You can do this by calling 13 2300. However, as a guide an Australian Age Pension can be paid to those residing overseas on a temporary basis. The rate you are paid may change after 13 weeks of absence and again after 26 weeks of absence. You will be required to continue to meet the requirements for Age Pension, i.e. your permanent home is in Australia. For more information on how long pension payments will be made if you leave Australia, visit Centrelink.gov.au. 

If you chose to move to another country permanently, your Age Pension will only be paid if that country has a social security agreement with Australia, the UK does not. To view the current social security agreements, visit Centrelink.gov.au.

Also, as you worked in the UK and presumably paid National Insurance contributions, you should be entitled to a UK pension. This may also affect your Australian Age Pension payment. For more information on UK pension agreements, visit Centrelink.gov.au.