If you’re an Australian expat living in the UK, you likely have a super fund you accrued while living and working in Australia.
When focused on your life in the UK, you may be tempted to take an “out of sight, out of mind” attitude towards your super fund. This may be particularly the case if you are currently planning to stay in the UK only for a limited period.
However, it’s important not to lose track of your super fund and ignore it.
Below are six key areas worth considering to help you manage your super with confidence while living in the UK.
1. Understand how your tax residency status affects your super fund
Your tax residency status is one of the biggest influences on how your Australian super works while you live in the UK and how you should manage it.
Even if you are no longer an Australian tax resident, your super fund can remain in Australia and be managed as if you were still a resident.
However, being a UK tax resident will have implications for other issues relating to your super fund. For example:
- Contributing to your super while overseas may be less tax-efficient
- How long you intend to stay in the UK will have a key bearing on your super fund
- If you have a Self-Managed Super Fund (SMSF), the tax consequences of being a UK resident could be significant.
Because of these issues, guidance from an advice company experienced in helping expats with their cross-border financial planning can be invaluable.
2. Make sure you have a clear record of the super funds you hold
Your super funds may well be a key part of your retirement plans, so it makes sound financial sense to carry out some simple housekeeping, to find out:
- What funds you have, especially if you have different funds from different employments
- Who manages them on your behalf
- How much they are currently worth
- How your funds are invested.
If you believe you have lost track of any of your super funds, you can access all your super records through the myGov website.
Once you have established what funds you hold, it’s worth creating a record of them so you can access them when you need to.
3. Consider whether consolidating your super funds could help
If you have multiple super funds, you may also want to consider consolidating them into a single arrangement.
Doing this will make them easier to manage and potentially reduce your administration costs. Rather than paying a series of charges, you will pay only one. Even the small amount you save can have an effect over a long period of time due to compounding.
You may also have more control over how your funds are invested, allowing you to align them with your broader investment objectives.
However, in some circumstances, consolidating your funds may not be the best course of action, particularly if there are exit fees or if you have retained insurance provision through your fund.
Because of this, we recommend seeking expert advice before deciding to consolidate.
4. Review whether it makes sense to continue contributing
If you’re living and working in the UK, you will probably be contributing to a UK pension scheme through your employer rather than an Australian super.
However, you may want to consider making voluntary super contributions while living overseas, especially if you plan to return to Australia to retire.
As you have read, contributing to your super while a UK resident may become less tax-efficient. Despite that, there are some tax-related advantages to continuing to contribute.
These include the favourable tax treatment on investments compared with a standard investment arrangement, and the fact that you can draw income from your fund tax-free once you retire.
Taking a holistic view, and comparing UK pension contributions with Australian super contributions, can help ensure you’re directing savings to the most appropriate vehicles for your long‑term plans.
5. Consider where you plan to retire
Another key issue you need to factor into your planning, and how you manage your super fund while you are living in the UK, is whether you expect to retire in Australia or stay permanently in the UK.
If your ultimate intention is to return to Australia to retire, then it could be beneficial to prioritise contributions into your UK pension rather than make payments into your super.
This is because you may be able to transfer your UK pension funds into a Qualifying Recognised Overseas Pension Scheme (QROPS) in Australia when you retire.
Doing this will enable you to benefit from a “win-win” taxation position whereby you have enjoyed tax relief on your UK pension contributions and will then be able to draw income from your QROPS in Australia without paying tax.
Your retirement intentions will have a key bearing on your pension arrangements, how you manage your UK arrangements, and your super. Again, we recommend seeking expert advice to ensure you are taking the right course of action.
Find out more: If you’re planning to move to Australia in 2026, you need to know about QROPS – bdhSterling
7 key facts about QROPS you need to know if you have pension assets in the UK
6. Be mindful of currency risk
Another strong reason to consider how you manage your super fund while living in the UK is the GBP/AUD exchange rate.
Your super will typically be denominated in Australian dollars, which could result in there being a mis-match between your UK-based finances and your super fund in Australia.
As a result, if you retire in the UK but have substantial retirement assets in Australia, exchange rate fluctuations may affect your retirement income when you start drawing from your super fund.
Looking at currency exposure as part of your wider financial plan, including other Australian investments, can help you manage this risk more effectively.
Find out more: Why expats in the UK and Australia need to take currency risk seriously
Get in touch
With offices in both the UK and Australia, we understand the financial planning challenges you face when moving between the two countries.
As mistakes can prove costly and difficult to reverse, we always recommend that you seek expert advice to help secure your long-term financial security, whether you are living in the UK, Australia, or moving between the two.
If you would like to talk about your own plans, please get in touch with us.
Please note
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
This article is for information only; it does not take into account your personal objectives, financial situation, or needs. Please do not solely rely on anything you have read in this article, and ensure that you conduct your own research to ensure any actions you may take are suitable for your circumstances.
All contents are based on our understanding of HMRC and ATO legislation, which is subject to change.