Landing a dream job in a foreign country might help widen career opportunities but in most cases it is likely to play havoc with your super.

While accurate data on the number of Australians working overseas is not publicly available, it is believed to have exceeded half a million last year.

In 2003, the Organisation for Economic and Cooperative Development estimated that 346,000 Aussies were working in other developed countries, with New Zealand, Britain and the United States accounting for more than half of the expat population.

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The OECD survey found that most expat workers were aged under 40.

Although an offer to work abroad might be irresistible for a qualified professional or tradesperson, the experience can turn out to be dead time for growing your super.

This is especially the case if your overseas job keeps you out of Australia for several years or longer.

Unless you plan ahead, an extended work stint outside Australia can make a mess of your retirement nest egg.

Getting super transferred to a local super account is mostly a tricky and sometimes disappointing experience.

Here’s a sketch of how the process works in different countries.

The US is a tough one, but if you plan you go, you should be okay. Photo: Shutterstock.

America, America…

If your work destination is the United States you should seek out advice from an independent financial planner before you leave.

American tax laws seem always to be undergoing big changes and recently they appear to have gotten messier for foreign workers.

Shane McNally, a director of the expat information website, exfin.com, says getting a Green Card to work in the US may not be the way to go if you want to later shift your retirement savings to an Australian super account.

In most circumstances, US authorities treat such transfers as “early withdrawal requests” and impose financial penalties.

“If you hold a green card, the superannuation you accumulated in the US will be subject to full taxation when you try to get the money to Australia and there are penalties in addition to the tax,” he said.

“However, if you’ve got a special work visa there are circumstances in which you can move the balance to an Australian super fund without incurring penalties.”

Mr McNally also warns people planning to work for more than two years in the US that tax authorities may require Australians to declare the annual investment returns generated by their super fund in Australia.

Old Blighty (aka the UK)

When it’s time to pull up stumps in London, getting your UK super transferred to Australia is likely to be much less complicated than for an expat in the US.

So long as your Australian super fund is recognised by the British Revenue Office, the super money that you have accumulated in the UK can be transferred.

The British government usually maintains a list of Australian and other non-British super funds that qualify to receive transfers from UK pension schemes.

However, an investigation by UK tax authorities last month found that some non-British funds did not meet the qualification requirements, so the list of eligible funds that is usually published at this link is temporarily suspended.

The list should be updated by early July.

Traditionally, many Australian industry and retail super funds have been able to accept transfers from UK pension accounts.

The Australian Tax Office has more information about transferring cash from the UK here.

Germany and the European Union

Getting super transferred from a retirement savings account in Germany and European Union countries is a nightmare for Australians.

It not only takes a long time (up to three years) but in many cases, most EU governments simply won’t allow you to move a portion of your cash.

Germany makes it very difficult to repatriate your super. Photo: Shutterstock. 

Under the German retirement savings system, all workers and employers are required to make compulsory contributions.

Australians who worked in Germany for less than 60 months are able to transfer compulsory contributions but have to wait two years after returning to Australia before making the application.

Unfortunately, it appears that employer contributions cannot be transferred to your Australian super account.

Further information on the German retirement savings system can be obtained at this German language weblink.

New Zealand

Australians stand a better chance of staying in control of their super balances built up during a work stint in New Zealand.

Individuals have been able to transfer savings between most Australia super funds and New Zealand KiwiSaver accounts.

This quite efficient, though imperfect arrangement, was established in July 2013 and is known as the Trans-Tasman Retirement Savings Portability Scheme.

Transfers from KiwiSaver accounts are not taxed and they are also tax-free when you withdraw from your super account at retirement.

Balances from KiwiSaver accounts can be transferred to accounts held with industry and retail super funds, but not Australian self-managed super funds.

Tips for managing your super

• Get independent specialist financial advice before you leave

• Make yourself aware of the tax and superannuation rules in the country you will be working in

• Moving overseas to work usually turns out to be more expensive than expected, so it’s important you adhere to a budget

• Save money outside super because transferring overseas retirement savings is a hazardous caper