The pension system in Australia is one of the most advanced pension systems in the world. It differs significantly from the Russian one. For example, on the Green Continent, elderly people receive a greater amount of state support, whose earnings during the period of active labor activity were lower. Also, a pension in Australia is calculated based on welfare. At the same time, problems related to the aging of the nation are beginning to appear in the country.
Who is eligible for retirement benefits
People who have lived and worked in Australia for at least 10 years can apply for a pension. However, after reaching a certain age, which can be a kind of surprise for immigrants from Russia. So, retirement in Australia in 2021 is allowed for men and women at 66 years old.
About how the process of adaptation of emigrants from Russia to life in another country, about the activities of the Russian diaspora and other issues related to the arrangement of life and the professional component, read the article “The Life of Russian Emigrants in Australia”.
It is believed that a person remains able to work until this age. Against the background of the high quality of life and medicine in Australia, this approach is quite justified.
In addition, local residents who have faced financial difficulties under various circumstances can count on help from the state.
The level of wages, social security for residents of the state, the level of development of medicine, the education system, climatic conditions - these and other topics are raised in the article "Australia: the life of ordinary people".
Structure of the Australian pension system
People who have worked in Australia for at least 10 years and have reached the age of 66 should know that the country's pension system includes two components: public and private.
- State pension. The source of funding is the state budget. It is not necessary to work in order to receive such a pension after a certain age. It is enough to step over the age bracket. The size of the salary does not affect the amount of the state pension. But this takes into account income and ownership of real estate. The following requirements are imposed on indigenous people and immigrants:
- Australian Citizenship. Duration of residence on the Green Continent - from 10 years.
- A pension in Australia for foreigners is assigned only if they live in the country when they reach retirement age.
- The bank account must contain an amount not exceeding 50,000 AUD (Australian dollars).
- Land area (if owned) - no more than 2 hectares.
- The property must be valued at a maximum of 160,000 AUD.
For pensioners who do not meet these requirements, financial state assistance can be reduced, or it may be denied altogether. The authorities explain this approach as follows: if a family has the opportunity to purchase expensive items or real estate, it can receive income from their use.
- Private pension. According to the method of formation, it is also called cumulative. According to the current legislation, employers deduct 9% of an employee's salary to a private pension fund (PF) if he has crossed the age bracket at the level of 18 years and works more than 30 hours a week. Recently, the country's government announced plans to increase contributions by 2021 to 12%.
The employee himself has the right to choose a pension fund (there are a great many of them on the Green Continent). These organizations differ in the percentage charged on the listed service fees, as well as the size of the entrance fee.
You can change the fund at any time. This is done thanks to electronic technologies very simply: on the website of the selected institution, a special form Relover Form is filled out.
After choosing a fund, the employee has 2 action strategies:
- invest the funds listed;
- leave money in storage at a fixed percentage.
Investments can be carried out in real estate and in the shares of prosperous Australian and foreign companies. If the investment is successful, the pension fund will return the interest, as a result of which the pension will increase.
You can withdraw money from a private pension fund after your sixtieth birthday. The accumulated amount is not taxed.
Pensioners decide for themselves what to do with the funds - add them to state financial aid or buy a cottage on the seashore.
Retirement age in Australia
Due to the aging nation in 2021, the Australian government has expressed its intention to increase the retirement age to 70 years. However, in 2021, this idea was abandoned.
Nevertheless, a law was passed, according to which the age limit for retirement will be raised to 67 by mid-2021. This regulation only applies to people born after July 1952.
More detailed information is presented in the table:
But in Australia there are also opponents of such a half-measure. They said that the decision to abandon retirement at 70 will cost the state budget 5 billion AUD.
In the third quarter of 2021, life expectancy on the Green Continent is 84 years. According to forecasts, every fifth inhabitant of the country by 2045 will be over 65 years old, which will cause a manifold increase in the volume of pension payments.
Take a sociological survey!
About the amount of pension payments
Let's start the conversation about what kind of pension is in Australia by specifying the minimum numbers:
- a single person receives about 500 AUD per month;
- the minimum cumulative pension for an elderly couple is 900 AUD.
As for the maximum payments, a single pensioner receives 1,590 AUD per month, and an elderly person who is married - 1,200 AUD.
You also need to know what is the average pension in Australia in 2021:
- a single pensioner receives 18,070 AUD per year;
- each spouse from an elderly couple - 13 624 AUD.
When a pensioner continues to work, the size of his salary is taken into account when calculating the pension. If it exceeds 43,000 AUD per year, the pension is not accrued at all.
By the way, if you translate into Russian currency, then the figures in rubles will turn out to be real for the Russian labor market: 1,875,690 rubles per year or 156,307 rubles per month. This is the guaranteed salary for a highly qualified programmer in Moscow.
A resident of Australia, having gone on a well-deserved rest, can count on the following supplements to his pension:
- Remote Area Allowance. These funds are intended to compensate residents of remote regions for higher communication and transport costs. The size of a two-week allowance of this type:
- for a lonely pensioner - equal to 18.2 AUD;
- for each spouse in a pair - 15.6 AUD.
- Pension Supplement Paid to people receiving a pension:
- by widowhood;
- on disability;
- on caring for a spouse, etc.
The amount of surcharges:
- a lonely pensioner is entitled to 60.2 AUD every 2 weeks;
- a married couple in total - 90.8 AUD.
Currently, the minimum component of the additional payment is transferred to the pensioner's bank account not once every 2 weeks, but on a quarterly basis.
How to get extra income
One real opportunity to improve the future financial situation of an Australian older person is through Super Co-Contribution. It provides for an increase in the funded part of the pension during the period of active labor activity.
The state adds a certain amount to the employee's account for each voluntary contribution to the pension fund made by the employee.Its value depends on the level of income and on the size of the additional payment.
To get an idea of how much will be added in 2021, take a look at the data presented in the table.
| Official income, AUD | Additional contribution, AUD | |||
|---|---|---|---|---|
| 200 | 500 | 800 | 1000 | |
| 50564 | 100 | 100 | 100 | 100 |
| 47564 | 100 | 200 | 200 | 200 |
| 44564 | 100 | 250 | 300 | 300 |
| 41564 | 100 | 250 | 400 | 400 |
| 38,564 and less | 100 | 250 | 400 | 500 |
If the income is equal to or more than 53 564 AUD, the additional amount is not transferred to the employee's account. Australian residents under the age of 71 are eligible to participate in the Super co-contribution program.
Another opportunity to increase your future retirement benefit is to create your own retirement fund. Entrepreneurs can do this. With the right approach to investing, funds of this type can bring significant income.
The state encourages such activities of entrepreneurs by reducing the tax rate on their profits by 2 times.
Learn about income, property and payroll taxes in Australia.
Benefits and benefits
Pensioners, in addition to the actual financial state aid, receive a discount on a considerable number of services and services. Of course, they will have to pay for a good rest, for example, in the same boarding house, but in order to get to it by public transport, it will be possible to buy a ticket at a discounted rate.
In addition, retirees who receive some other income pay less taxes.
The purchase of pharmaceutical products deserves a separate discussion. Most retirees are issued cards for the purchase of drugs: Commonwealth Seniors Health Card or Health Care Card. The bearer of such a document can buy the drug at the lowest price. Moreover, the real cost of the medicine does not matter: it costs 50 or 15 AUD, the cardholder will pay about 4 AUD in any case.
In addition, the state partially compensates for rental costs for elderly people who do not have their own home. The amount of such assistance for a single pensioner or for a married couple is 3,000 AUD / year.
In Australia, it is possible to receive non-age-related pensions.
The state will always come to the aid of parents who are raising young children. According to the law, a woman who divorces her marriage and is left with a small child in her arms will be paid approximately 16,500 AUD per year until the baby is 8 years old.
The pension that a mother receives for her children is calculated individually, taking into account her income. The minimum volume is 5,179 AUD / year and the maximum is 47 330 AUD.
Single parents, in addition to money, have the opportunity to receive housing from the state. They still need to pay rent, but it is not high.
Couples with a small income and raising children can also count on retirement. However, it is not easy to receive funds: applicants for such benefits must meet a number of requirements and fulfill certain conditions.
Unemployment benefit is paid to people who have lost their permanent job and are not receiving a pension, even if they have lived in Australia for less than 10 years.
How is a pension issued to a foreigner
Citizens of the country, as well as immigrants, can receive a pension in Australia. The latter are subject to the following requirements:
- the presence of a permanent visa;
- duration of residence in the country - at least 10 years. The total time is taken into account, but the duration of one of the periods must be at least 5 years.
Centrelink, an analogue of the Russian Department of Social Protection, deals with issues related to the appointment of pensions, including for immigrants.
To apply for a pension to this organization, you must provide:
- Identity document.
- Taxation number. Foreigners who do not have one need to get a special form from Centrelink, fill it out and send it to the tax office where they live. The TFN tax number will be ready in a few days.
- Proof of 10 years of residence in Australia. This can be a certificate from a local employer.
The pension will be issued in the absence of comments on the submitted documents.
Conclusion
At the heart of the Australian pension are two components: public and private. Both a citizen of the country and a foreigner can count on receiving a pension benefit.
In addition to monthly cash payments, a person who is on a well-deserved rest is entitled to a variety of benefits, including significant compensation for the cost of purchasing the necessary medicines. In addition, retirees can purchase tickets for travel on public transport at a significant discount.
