social Security benifits - which is better USA or Australia

[eva-usa]

Hi Freinds,

one more question on USA Vs. Australia.

I lived in USA for 7 yrs.

I also got the PR for Australia.

Which country has better social security benifits in terms of retirement benifits, medicare & any other things you can think of in ur retirement age?

Thanks

[anj1976]

hi eva

there is no comparison. one place give u peace of mind and the other gives u stress and hence better medicare benefits.

amaslam is from US and moved to AU because of the same reason. a less stressful life and better weather conditions.

[amaslam]

AU usually gives better benefits:

1. 9% mandatory base salary into your Superannuation (like a US 401k)
2. Medicare for life (public medical system).
3. Pension benefits upon retirement (it might be small, but it's available, subject to income and means tests).
4. Other living cost benefits (see Centrelink website).

Originally Posted by eva-usa

Hi Freinds,

one more question on USA Vs. Australia.

I lived in USA for 7 yrs.

I also got the PR for Australia.

Which country has better social security benifits in terms of retirement benifits, medicare & any other things you can think of in ur retirement age?

Thanks

[Bevdeforges]

Don't know about Australian social security - but the US SS only kicks in if you've managed to keep yourself employed during the requisite qualification period. That can be the tough bit these days. And the Medicare part is only good if you're living in the US. Move overseas and you paid in for nothing.

There is a social security treaty between the US and Australia that provides for coordination of benefits. If you move to Australia, those 7 years of working in the US aren't lost. At the very least, you'll receive credit for the time you worked, if not for the salary you earned.

If you're trying to choose between countries, pick the one where you're most likely to be able to stay employed - to earn your full credits toward retirement. Besides, the US Medicare system may change when and if they ever deal with this health care reform.
Cheers,
Bev

[eva-usa]

Originally Posted by amaslam

AU usually gives better benefits:

1. 9% mandatory base salary into your Superannuation (like a US 401k)
2. Medicare for life (public medical system).
3. Pension benefits upon retirement (it might be small, but it's available, subject to income and means tests).
4. Other living cost benefits (see Centrelink website).

Hi amaslam,

Thanks for the precise answer. Appreciate your help.

Thanks,

Eva

[srn_29]

Hi guys,
I might be asking the most dumb question but this is something i'm not clear about.

I also got the PR for Australia

1. Does this mean that PR's also are entitled for social security benefits or is it only the citizens?
2. Could anyone please throw some light on Superannuation ?




Thanks.

[amaslam]

PRs are eligible for these benefits. Even temp residents get Superannuation (but not the other benefits such as Medicare and Centrelink benefits).

Superannuation is very similar to the US 401k, it is a contribution into an account for the purpose of retirement savings. These can be invested into stocks, bonds, cash. Just like a 401k.

The main difference, the funds inside are taxed at 15% per year, this is usually better than the standard income tax rates (> 15%). However all of your super funds are tax-free when you turn age 60 (you can withdraw them in full and they are tax-free at that point).

Also by law any paid work the employer needs to put n 9% of the base salary into Super, you may also contribute further from your salary.

You can read more about Super here:
Superannuation

Originally Posted by srn_29

Hi guys,
I might be asking the most dumb question but this is something i'm not clear about.



1. Does this mean that PR's also are entitled for social security benefits or is it only the citizens?
2. Could anyone please throw some light on Superannuation ?




Thanks.

[kaz101]

See centrelink Centrelink - Giving you options for benefits since some only kick in after you've been here for a few years even if you have PR.

[matjones]

I have zero faith that money I am paying now into the US system will be there for me when I'm old and gray. I'm gonna take my chances in AU.

[eva-usa]

Originally Posted by matjones

I have zero faith that money I am paying now into the US system will be there for me when I'm old and gray. I'm gonna take my chances in AU.

Well matjones, u r paying social security tax so government has to pay u back at retirement ...otherwise millions old age people in US have no other option then end their life. ...its difficult to survive in US if u dont have money ....

Well in any case I leaning more towards Ausi for my future destination but still am not convinced fully to leave US for good ...