# social Security benifits - which is better USA or Australia



## eva-usa (May 14, 2009)

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


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## anj1976 (Apr 24, 2008)

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.


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## amaslam (Sep 25, 2008)

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).




eva-usa said:


> Hi Freinds,
> 
> one more question on USA Vs. Australia.
> 
> ...


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## Bevdeforges (Nov 16, 2007)

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


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## eva-usa (May 14, 2009)

amaslam said:


> AU usually gives better benefits:
> 
> 1. 9% mandatory base salary into your Superannuation (like a US 401k)
> 2. Medicare for life (public medical system).
> ...


Hi amaslam,

Thanks for the precise answer. Appreciate your help.

Thanks,

Eva


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## srn_29 (May 14, 2009)

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.


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## amaslam (Sep 25, 2008)

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



srn_29 said:


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


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## kaz101 (Nov 29, 2007)

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.


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## matjones (Jan 30, 2009)

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.


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## eva-usa (May 14, 2009)

matjones said:


> 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 ...:confused2:


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## matjones (Jan 30, 2009)

eva-usa said:


> 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 ...:confused2:


the amount of money the government gives seniors is pathetic, that is why it is best to have a private retirement plan.


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## eva-usa (May 14, 2009)

amaslam said:


> 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.
> 
> ...


Does Ausi employers do background checks using third party just like here in USA? or do we have to provide professional references? IF we have to provide professional references then do they really call our contacts?


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## srn_29 (May 14, 2009)

Great, thanks everyone.  So, incase I'm in need of money, can I use it from this amount that goes aside & then repay it later? Also, does the government generally reviews the Superannuation percentage on a regular basis ?

I'll go thro the websites, if i have any more questions i'll come back to you... 


Thankyou...


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## amaslam (Sep 25, 2008)

Generally no, there are only very specific conditions (hardship provisions) that allow you access before age 55 (in a transition to retirement plan). The money is meant for retirement and is not a general fund for just anything.

The government does not regularly review the Superannuation percentage, it has been 9% for years.



srn_29 said:


> Great, thanks everyone.  So, incase I'm in need of money, can I use it from this amount that goes aside & then repay it later? Also, does the government generally reviews the Superannuation percentage on a regular basis ?
> 
> I'll go thro the websites, if i have any more questions i'll come back to you...
> 
> ...


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## amaslam (Sep 25, 2008)

Usually you provide professional references and I think in most professions they do call at least one of your references. I don't think they use 3rd party checks unless they're a very large international organisation which already has done it through a US based office.



eva-usa said:


> Does Ausi employers do background checks using third party just like here in USA? or do we have to provide professional references? IF we have to provide professional references then do they really call our contacts?


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## srn_29 (May 14, 2009)

Thanks for clarifying that for me amaslam, tomorrow is my weekly-off, so i plan to go thro the websites about Superannuation , i'll come back to you if i need more clarification....


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