Retirement and purchasing a house in Aussie (Singapore VS Australia)

beth_loggins · February 2013

Hi Guys,

I am going to use po 1AUD=1.28SGD or 42PHP
Let's assume lang po in this question, we're working as a IT Engineer, earning SGD5000 in Singapore and AUD6000 sa Tasmania (ang alam ko po mas mataas ang sweldo sa AUSSIE) and assuming po hinde po tayo nag save sa salary natin, we rely sa CPF and SUPER as savings po.

I was wondering, how does retirement in Aus works po and savings systems work.

Kasi in Singapore, we have this system called CPF , in which 20% of your monthly salary is being contributed to a centralized bank, addition to the 20%, your employer will be contributing another 15%. So more or less its 115% Salary per month in Singapore. Though 35% cannot be touched.

So if you're earning SGD$ 5,000/Month.
Your take home will be SGD$ 4000/Month
Whereas, its your monthly CPF will be about SGD$1750 /Month. Or SGD$21,000 / per year sa savings or PHP 690 Thousand.
This CPF can be used to purchase a house flat, for medical and invest in stocks.
Tapos po, you can withdraw it as a lump sum if you decide to let go of your citizenship or PR status sa Singapore.

As for Australia, I know meron po na SUPER sila. Based on what I have read po, your employer will be adding additional 9% of your based salary. So assuming po we're earning AUD6000.
Our take home pay monthly will be about AUD4,4000 (based on http://www.paycalculator.com.au/) minus tax and everything.
We will be setting aside 9% for super, that's about AUD540/mth or AUD6480/year or PHP272160.

I am unsure how super works,
but based on the calculation I did above, in an annual point of view, will we be able to save more sa Singapore compared to Australia if we are just relaying sa CPF/SUPER in terms of Savings?

Let's assume po, Australia does not work for us, "knock on wood", will we be able to withdraw SUPER just like CPF if we decide to leave the country and go back sa Pinas, say at the age of 45?
Or do we have to wait until retirement age? ...

Buying House

As mentioned, CPF can be used to purchase a house, can we user SUPER to?

)) Thanks in advance for answer my question

beth_loggins · February 2013

In a nutshell po, assuming isang tamad tayong IT Engineer at hinde tumaas ang sweldo natin hehe...

ang savings po natin will be...

1 Year in SGD = 2.6 Years in Australia...

CPF VS Super

TasBurrfoot · February 2013

If you only rely on your super/CPF as savings, mas better off ka sa Singapore before effectively 35% of your monthly salary will be set aside to your CPF.

Habang sa Australia naman only 9.25% (effective July 2013) is being set aside by the employer - as far as I know walang employee share sa super UNLESS you will opt for a salary sacrifice...

Ayun, hope this help...

TasBurrfoot · February 2013

Buying House

As mentioned, CPF can be used to purchase a house, can we user SUPER to?

)) Thanks in advance for answer my question

Super cannot be used to purchase a house...

Unlike sa Singapore noh where you can use CPF to service your mortgage and effectively you will have a bigger net as (1) your mortgage will be taken from your 20% CPF contribution and (2) you will no longer have our of pocket cost for rental...

beth_loggins · February 2013

wow sir physcoboy, bilis ng reply nyo ha! Bot ba kayo?! hehehe...

But, will you be able to withdraw SUPER like CPF, assuming you want to leave the country na? Or do you have to wait till retirement age?

TasBurrfoot · February 2013

withdrawing i am not sure but feeling ko pwede naman if you will renounce your PR...

i thinks it is logical na ganun... didn't bother to check on this.

audreamer · February 2013

suggest to take one concern at a time and relax. im sure everything will work out fine. too much information and concerns(worries) is not healthy.

LokiJr · February 2013

Aside from superannuation, residents in Australia are entitled to Age Pension by the time they are 65 to 67. The amount eligible to a person varies depending on their assets and income but minimum is $14,000 a year. Malaki laki na rin siya.

And then yung property niyo sa Australia, puwede niyo iconvert sa Granny Flat...at maraming tax savings dun

vangievc · March 2013

pwedeng makuha super if you are going to give up your citizenship. yun nga lang tax deductable kung kukunin mo ng less than 60 years old ka. i am not 100% sure pero yung super natin ang magiging retirement fund natin. Some australians are not happy about this. Medyo parang ang pangit ng idea na pera mo hindi mo pwedeng galawin. The govenrment wants to make sure na hiindi tayo magiging pabigat sa kanila pag tanda natin. :-)

Medyo siguro iyan ang dilema ng mga taga SG.he he he. Unlike us coming from NZ na recently lang na introduce super, hindi issue ang super., infact happy kasi my savings pa rin kahit papano.I was ignoring my super before. After 6 years here ,if I am going to calculate my super, bumababa amount nya. kasi may mga superfunds company na humahawak ng pera natin, then you can choose where to invest it.But because of the bad economy yung pera hindi kumikita. tapos may tax pa at insurance fee.I am still grateful kasi nga hindi ko naman iniintindi ito.At the end of the day happy pa rin ako kasi nakikita ko na may pera pala ako na natatabi. :-)

Nadine · March 2013

Makikisali po ako dito ha, kasi interesting topic and I can relate, hehe.

Dati sa Singapore, ang reason ko talaga dati bakit ayaw ko mag PR, kasi mababawasan allowance na matatanggap ko kasi mapupunta CPF (haha!). Plus, I wasn't too keen in staying Sg talaga, kahit madali pa dati mag-PR. Financially however, ayaw ko mabawasan earnings ko.

Dito sa Aussie, hindi naman binabawasan salary kahit may superannuation because ang company naman magbibigay ng 9% para sa super natin. This 9% is generally NOT take from our salary po. It's over and above your base salary.

Unless mag salary sacrifice tayo, in which case mababawasan salary pero madadagdagan naman super. In my case, nag salary sacrfice ako 2% of my earnings, but then the company matched it with 10.2% din naman. So, if you wish to contribute more, pwedeng-pwede po, hehe

Yung super lang talaga hindi makukuha ng basta-basta, unlike CPF. Major downside yun ng super, at advantage ng CPF over super. Retirement savings talaga siya kasi sobra ang tax if withdrawn prematurely. Pero ok na rin for me, di ko nagagastos.

BUT, ang gusto ko talaga sa super aside from the savings, may life insurance at salary protection as riders. So ibig sabihin as long as I'm an active member, at (knock on wood) may mangyari sakin, may matatanggap beneficiaries ko sa Pinas (default set at $250k + whatever total super contribution mo). Or kunyari, hindi ka makapag work kasi nagkasakit, na-ospital, may sweldo ka pa rin from super. Yun naman advantage ng super over CPF.

lock_code2004 · March 2013

wow dra. @nadine expert kana about super..

parang kelan lang nagugulumihanan pa kayo..
pati ako rin.. hopefully maintindihan ko lahat pag dating na dyan.. haha..

Nadine · March 2013

wow dra. @nadine expert kana about super..
parang kelan lang nagugulumihanan pa kayo..
pati ako rin.. hopefully maintindihan ko lahat pag dating na dyan.. haha..

Eto, sa pagkakaintindi ko lang po, hehe! Ako pa naman na 1+1 lang ang alam (hirap pa)...

Madami pa po ako hindi naiintindihan and I'm sure madami din forumers who have wider experience and more extensive knowledge. Sana mag-post din sila. Para we all learn.

beth_loggins · March 2013

I guess very grey area ang subject ng SUPER VS CPF.
Ang maganda lang sa CPF is you can withdraw it as a whole lump if ever you decide to leave Singapore and revoke your PR status.. and you can do whatever you want with the CPF money.

Eg: Kung gusto mo laging lasing for the next 10 years using CPF money, pwede!!!

Having said that, ang super talaga is for "old age" pension, pretty much like USA's 401K plan ba yun. yun lang talaga ang panget ksi if you are to withdraw it at an early eage, taxable talaga.
Yan lang talaga panget, I guess.. its best if sariling savings nlang sa Australia like 1000AUD a month until retirement age...

As for CPF, well, ang kagandahan lang ay more or less 35% of your sweldo is being saved. or maximum SGD1800/mth or about 59000 Pesos/Mth hehe.. so in 2 years, meron kang savings na about 1.6 Million (inclusive of bonuses..etc etc).

Yun lang talaga if CPF ang habol mo.

but come to think of it, Singapore has recently released its plan to cut down to big time foreign talent. Yahoo.com...
Ang masama pa dun, if Single PR ka and 35 Years old sa Singapore, maximum HDB flat you can purchase is only 40sq meters.

Kalokohan!!!

in conclusion, I think its best for us not to think so much of monetary issue, but rather than buhay itself.. makakaipon ka nga sa Singapore.. pero parang naka prison ka..

hotshot · March 2013

@beth_loggins : pwede na ba bumili ng HDB flat ang single? last time i checked kasi kelangan dalawa kayo...either asawa or kapatid na PR din ang partner sa pagbili. pero sa pagkakaalam ko tinanggal na din nila yung kapatid, so kelangan may asawa ka talaga para makabili. yun ang pagkakaalam ko. hehe

oo nga, kung pera lang talaga iisipin, mas mabilis makaipon sa sg. pero for me, di ko talaga maisip na dun na tumanda. sa almost 5 years na andun ako, feeling ko 100 years na akong andun. hahaha

beth_loggins · March 2013

@hotshot, yes pwede bumili ang single pero 35 yrs old and above, tapos ang new policiy nila ay 30-45square meters nlang ang pwede mo bilihin if single ka.. check this

http://sg.news.yahoo.com/new-measures-for-above-35-singles-to-buy-selected-hdb-flats--khaw-130406785.html

Kalokohan nga eh ang liit pa..
So yun kaya ayaw ko na rin dito.

Tama bka mas mabilis ipon sa SG, pero life is not about $. kaya alis na tayo...

@hotshot, may full time job ka na ba dyan sa Sydney? Ksi feel ko sa NSW din ako babagsak.. musta nman ang buhay buhay natin dyan

Nadine · March 2013

I beg to disagree.

Nope, not in my experience po. Mas ok po talaga kita ko dito mga pips kahit mas konti gastos ko dun! Sobrang daming factors kung mas makakaipon or hindi. It still depends on the lifestyle you're living, the job you have, even the industry you're at. We can't make a sweeping generalization talaga. Granted, mahal po dito. Pero pay dito is also more fair (for us anyway) that it just adds up.

beth_loggins · March 2013

@nadine, pero ano ka pare, sariling opin sa australia?

Nadine · March 2013

Mahabang diskusyon to, usapang pera eh, hehehe! Will send u PM po.

LakiMasel · March 2013

suggest to take one concern at a time and relax. im sure everything will work out fine. too much information and concerns(worries) is not healthy.

Naku tinamaan ako nito ah! Lol!

LakiMasel · March 2013

Makikisali po ako dito ha, kasi interesting topic and I can relate, hehe.

Dati sa Singapore, ang reason ko talaga dati bakit ayaw ko mag PR, kasi mababawasan allowance na matatanggap ko kasi mapupunta CPF (haha!). Plus, I wasn't too keen in staying Sg talaga, kahit madali pa dati mag-PR. Financially however, ayaw ko mabawasan earnings ko.

Dito sa Aussie, hindi naman binabawasan salary kahit may superannuation because ang company naman magbibigay ng 9% para sa super natin. This 9% is generally NOT take from our salary po. It's over and above your base salary.

Unless mag salary sacrifice tayo, in which case mababawasan salary pero madadagdagan naman super. In my case, nag salary sacrfice ako 2% of my earnings, but then the company matched it with 10.2% din naman. So, if you wish to contribute more, pwedeng-pwede po, hehe

Yung super lang talaga hindi makukuha ng basta-basta, unlike CPF. Major downside yun ng super, at advantage ng CPF over super. Retirement savings talaga siya kasi sobra ang tax if withdrawn prematurely. Pero ok na rin for me, di ko nagagastos.

BUT, ang gusto ko talaga sa super aside from the savings, may life insurance at salary protection as riders. So ibig sabihin as long as I'm an active member, at (knock on wood) may mangyari sakin, may matatanggap beneficiaries ko sa Pinas (default set at $250k + whatever total super contribution mo). Or kunyari, hindi ka makapag work kasi nagkasakit, na-ospital, may sweldo ka pa rin from super. Yun naman advantage ng super over CPF.

Thanks for the info Nadine! Single ka pa ba?

hotshot · March 2013

@hotshot, yes pwede bumili ang single pero 35 yrs old and above, tapos ang new policiy nila ay 30-45square meters nlang ang pwede mo bilihin if single ka.. check this

http://sg.news.yahoo.com/new-measures-for-above-35-singles-to-buy-selected-hdb-flats--khaw-130406785.html

Kalokohan nga eh ang liit pa..
So yun kaya ayaw ko na rin dito.

Tama bka mas mabilis ipon sa SG, pero life is not about $. kaya alis na tayo...

@hotshot, may full time job ka na ba dyan sa Sydney? Ksi feel ko sa NSW din ako babagsak.. musta nman ang buhay buhay natin dyan

full time "house-band" ako since yesterday.

li_i_ren · March 2013

Nadine someone is askng if single ka pa bah? Hehehe!

Anyway i dont know anything about singapore but i know something sbout buying a house. My sister just bought their first house here:)

Housing price depends on location location location.

1. Go to the bank first. Get ur finances sorted before even going to open homes and such. Know how much the bank can give you and know how much you can give as deposit. General rule is, the bank can lend you x2 or x3 of your annual income. So if maliit sweldo mu.. Kunti lng makukuha mu as loan so meaning you need a bigger deposit. The bigger ur salary.. Mas better ung loan mu.

2. You have ur finances sorted na. Look for a house. Auctions tend to be more expensive. Developers have pros and cons.. You can build a house from scratch for a set price kasi may mga premade model na ung mga bahay. You can find a house for sale. All of these can be done online.
Brand new houses you can save on stamp duties while 2nd hand or older homes you have toay stamp duties.

3. Inspect the house. Ask for council records for modification etc. if you are happy...

4. Find a lawyer. The lawyer will negotiate with the real estate agent about price and your offer.

5. The agent gives you the price... Papers sbout the house.

6. Go to the bank.. The bank will review the asking price. If the bank says it is overpriced balik yan sa lawyer then balik sa agent until the right and fair price is made. The bank has a say on this because if u cant pay of ur mortgage the property becomes the banks. The bank also acts as a safety net for buyers so no sellers will overprice their houses.

7. So ok na ang price. You can ask for first home buyer grant if p.r. Etc. pero only 1 of u as a couple can get it.. It cnt be for both of u.

8. Prepare 21% deposit. Bakit 21% ? Kasi if you dont pay at least 20% you have to pay for inurance which after how many years to pay is almost equivalent of a new deposit. If may 21% deposit then no need to pay the loan insurance.

9. Make an offer for the house. The lwyer does this. He makes sure tama lahat. Remember everytime you see a lawyer may bayad.. So find a good lawyer kasi if palpak ang lawyer more money for him.

10. Pay council dues and fees if suburb living. If building living.. Pay strata fees and cost.

11. Ok na lahat ng paperorks.. Agreed na yung price.

12. Make a dposit.

13. On ur move in date start na ung mortgage..pwdi weekly which means the faster u pay off the loan. The less it would be kasi may interest per annum if matagal ka mag bayad like 20 years... Ung interest is almost enough to buy another house so bilisan paying of the mortgage.

sydneyblued · March 2013

Very helpful info!

In Oz I heard may incentive daw from government for first time house buyer? Is this by cash po ba and how much?

hotshot · March 2013

@sydneyblued : this is for NSW --> http://www.osr.nsw.gov.au/benefits/first_home/general/fhogs/

sydneyblued · March 2013

@hotshot thanks sa link! Good to know na may assistance na ganito from the government

li_i_ren · March 2013

Its around or less than 10 k dpende po but it has criterias you need to meet.

Paid directly to your mortgage.. You dont actually see the money basta diretso na once approved kayo:)

may rumors na baka tangalin na din... We will see malapit ma din election eh. I am nkt sure if all states meron pa bah..

beth_loggins · March 2013

@nadine, pero ano ka pare, sariling opin sa australia?

li_i_ren · March 2013

@beth_loggins anu po yung opin?

anung work?

hotshot · March 2013

opin = ipon?

li_i_ren · March 2013

@hotshot ipon as in save? ... Hehehehe. Di ko makuha ung statement:) hehehee! Is he asking nadine if she is saving? ..hahaha!

li_i_ren · March 2013

Just heard now from nine news (13-3-2013) wala na ang first home buyer scheme. So we dont get anything na if first home buyer:( sayang for us just starting in au.. Oh well..ipon na lang properly:)