Today, we’re diving into the fascinating world of pensions — specifically looking at the systems in the UK, Australia, and Singapore. We’ll also touch on pensions in Hong Kong and France, giving you a clearer picture of how state and private pensions work, who is eligible, and what to do if you move abroad.

Let’s kick things off with the United Kingdom. The UK pension system is primarily made up of two components: the State Pension and private pensions.
The State Pension is a flat-rate benefit paid to those who have made sufficient National Insurance contributions during their working life, currently set at 175.20 pounds a week for the full amount as of 2023. You can begin claiming your State Pension once you reach the State Pension Age, which is gradually increasing to 67. For those who have lived and worked in the UK, accessing your pension if you move abroad is still possible. You can claim it, and it might even be adjusted based on the country you move to.

In addition to the State Pension, many people save into private pensions. These might be workplace pensions or personal pensions. With workplace pensions, employers often match contributions, making this an excellent way to save for retirement. Remember, however, that you typically cannot access these funds until you’re 55, although this is set to rise to 57 in 2028. If you move abroad, checking the regulations in the host country is crucial because rules around pension access can vary significantly.

Now, let’s hop over to Australia, where the pension landscape is a bit different. The Age Pension is available to Australian citizens and residents aged 66 and a half, rising to 67 by 2023. The amount you receive is income and assets-tested, and the government aims to provide support for those who need it most.

Alongside the Age Pension, there’s the Superannuation system, a compulsory savings scheme where employers contribute a percentage of workers’ earnings into a super fund. At retirement, you can often access these funds, and there are several conditions under which you can access your Super if you move overseas – notably, if you have left Australia permanently, you might be able to access your super after a waiting period.

Next up is Singapore, where their pension system is known as the Central Provident Fund or CPF. This is a mandatory savings scheme designed to provide for retirement, healthcare, and housing. Most employees must contribute to their CPF, and the amounts vary based on age and salary. Do note that this is only mandatory for Singapore Citizens & PR, so for expats you can add into the SRS account instead:

Why Should Expats Open an SRS Account?

Upon reaching the age of 55, you can withdraw a portion of your CPF savings, and at age 65, you’ll start receiving monthly payouts from your CPF Life scheme, ensuring a steady income stream in retirement. If you decide to move overseas, CPF savings can typically be withdrawn once you have officially left Singapore, which is a fantastic benefit for expatriates.

Do remember that, seen as most expats are not PR, it’s a good shout to contribute, either into SRS, or by creating your own retirement fund, otherwise you may be left with no pension!

While we’re focusing on these three countries, let’s briefly mention Hong Kong and France.

In Hong Kong, there’s the Mandatory Provident Fund (MPF), where both employers and employees contribute to a retirement savings scheme. Once you retire at 65, you can access your funds. For those moving abroad, you may be able to withdraw your MPF contributions as a non-resident.

In France, the system combines a state pension and complementary plans. Employees contribute throughout their working lives and can start taking pensions from the age of 62. When moving abroad, expats can still access their pensions, although it may involve some administrative steps.

So, there you have it! A quick overview of pensions in the UK, Australia, and Singapore, with a touch of Hong Kong and France. Remember, pension systems can often seem complex, especially with the added layer of international regulations, so always do your research or consult with a financial advisor, particularly if you plan on moving abroad.