Superannuation For Australian Expats Living In The US – What Are The Rules? part 2 – Part one is here.
Benefits of Superannuation for Australian Expats
When it comes to superannuation, there are a few key benefits for Australian expats. Even if you live in the United States, Canada, the United Kingdom, or any other country, you can still take advantage of your Australian superannuation account. Without further ado, below are the benefits of superannuation for Australian expats:
You Can Still Access Your Superannuation Funds
If you’re an Australian expat, you can still access your superannuation funds no matter where you are in the world. This is a big advantage compared to other countries where you may not access your funds if you move overseas.
That being said, you will need to keep track of your Australian superannuation account and make sure you’re contributing to it regularly. Otherwise, your funds may be inaccessible down the line.
Opportunity to Contribute Superannuation Fund
Even if you’re living overseas, you can still contribute to your Australian superannuation fund. This is a great way to save for retirement, especially if you’re not currently contributing to a superannuation fund in your host country.
You can contribute to your Australian superannuation fund through a salary sacrifice arrangement or by making after-tax contributions. Just make sure you talk to your accountant or financial planner to see what the best way for you to contribute is.
Tax Benefits
If you’re contributing to your Australian superannuation fund, you may be able to enjoy some tax benefits. For example, if you’re earning an income overseas, you may be able to claim a tax deduction for your contributions.
Likewise, if your host country has a lower tax rate than Australia, you may be able to save money on your tax bill. Just make sure you talk to an accountant or financial planner to see if you’re eligible for any tax benefits.
Ability to Take Your Superannuation with You
Another big advantage of Australian superannuation is that you can take it with you when you move overseas. This is unlike many other countries where you may not take your superannuation with you. This is a great way to ensure you have a retirement fund, even if you’re living in a country with a lower cost of living.
You Can Still Access Centre link Benefits
Even if you’re living overseas, you may still be able to access Centre link benefits. This includes the Age Pension, Disability Support Pension, and Career Payment. To be eligible, you’ll need to meet certain residency requirements. You can find out more about the residency requirements on the Centre link website.
The Age Limit Is Higher
If you’re an Australian expat, you may be able to take advantage of the higher age limit for superannuation. In Australia, you can access your superannuation funds once you turn 65. However, if you’re living overseas, you may be able to access your funds once you turn 67.
This is a great way to ensure you have a comfortable retirement, especially if you’re not planning on returning to Australia shortly.
You Can Consolidate Your Superannuation Funds
If you have multiple superannuation funds, you may consolidate them into one account. This can make it easier to keep track of your superannuation funds and ensure you’re getting the best returns.
To consolidate your superannuation funds, you’ll need to contact the Australian Tax Office (ATO). They can help you work out which fund is the best for you and help you to transfer your funds.
Overview of the Top 5 Cities in the United States
Many different cities in the United States offer a wide variety of different things to do and see. While there are many great cities to choose from, here is a look at the top 5 cities in the United States.
New York City
The Big Apple is known for being one of the most exciting and vibrant cities in the world. From the bright lights of Times Square to the amazing food options, there is something for everyone in New York City.
Also, with world-famous landmarks like the Statue of Liberty and the Empire State Building, there is plenty to see and do in this iconic city. Therefore, it is no surprise that New York City is often at the top of the list of the best cities in the world.
Los Angeles
Another iconic city in the United States, Los Angeles, is known for its amazing weather and beautiful beaches. With plenty of things to do both indoors and outdoors, LA is a great place to visit year-round.
Some of the most famous landmarks in Los Angeles include the Hollywood Sign and Beverly Hills, so be sure to check them out if you visit. Besides, who wouldn’t want to see the Walk of Fame and the homes of some of the biggest stars in the world?
Chicago
Another great city to visit in any season, Chicago is known for its amazing architecture and food scene. From the Willis Tower to Navy Pier, there are plenty of interesting sights to see in Chicago. And, with a growing restaurant scene, there are plenty of great places to eat in Chicago as well. In fact, the city has been named one of the best food cities in the world by several different publications.
Washington D.C.
As the capital of the United States, Washington D.C. is home to some of the most important buildings and monuments in the country. From the White House to the Lincoln Memorial, there is much to see and do in this historic city. In addition, Washington D.C. is also home to some great museums, including the Smithsonian Institution. So, be sure to check out some of the city’s top attractions if you visit.
San Francisco
San Francisco is often considered one of the most beautiful cities globally, and it is easy to see why. With its iconic Golden Gate Bridge and rolling hills, San Francisco is a sight to behold.
In addition, San Francisco is also home to a great food scene and some interesting history. So, be sure to check out some of the city’s top attractions if you visit. More so, San Francisco is a top tourist destination for those who love to wander and explore.
Frequently Asked Questions about Australian Superannuation
How does Australian superannuation work?
There are three main types of Australian superannuation: employer-sponsored, individual, and public. Employer-sponsored superannuation is the most common, with over 60% of employees participating in a scheme. Individual superannuation is where the employee manages their superannuation account, and the government manages public superannuation.
How is the money invested?
The money in a superannuation account is typically invested in a mix of assets, such as cash, shares, property, and fixed interest securities. This mix is designed to give retirees a stable income stream in retirement while also providing some growth potential to help keep up with inflation.
How much will I get in retirement?
It’s impossible to predict exactly how much money you’ll have in retirement, as it will depend on several factors, including the amount you’ve saved and the returns achieved on your investments.
However, if you’re participating in an employer-sponsored scheme, your employer will typically contribute a percentage of your salary into your superannuation account, which will help to increase your eventual retirement payout.
Can I access my superannuation before retirement?
Yes, you can generally access your superannuation money before retirement, but there may be restrictions depending on your age and the type of superannuation account you have. For example, you may only be able to access your money in an individual superannuation account if you’re aged 55 or over.
Conclusion
There are a few things that Australian expats need to be aware of when it comes to superannuation and living in the US. Firstly, unless you are a citizen or resident of the United States, you will not be able to contribute to an American 401k or IRA. That’s why; we’ve highlighted some of the rules above. You can check our platform always to stay up-to-date about superannuation and more.
Pained by financial indecision? Want to invest with Adam?
Adam is an internationally recognised author on financial matters, with over 371.1 million answers views on Quora.com and a widely sold book on Amazon
