Retirement

[hackney]

Originally Posted by Tassie f100

The “normal”pension I reckon is plenty for a couple to live fairly easily on.Think anyone who is on the Govt gravy train gets a fair bit more courtesy of the taxpayer

Not if you want a fairly easy life in retirement, I certainly would not want to rely on the Government only pension.I find that scenario quite scary.

[Charliewool]

Originally Posted by Trevor 57

the money has to come from somewhere, there is no money tree and I think a fair a reasonable means test is OK, people who don't need it shouldn't get it

Respectfully I disagree…
An Australian citizen who’s lived and paid taxes all their working life in Australia should automatically qualify… It certainly doesn’t take much to be over the assets threshold nowadays.. You are penalising those that are over this asset threshold simply because they have done ok for themselves… After also probably paying a bucketload more taxes than average Joe
I’m not talking the Lindsey Foxes, the mega-wealthy… They ain’t going to apply anyhow!
This “means testing” crap is totally outta hand and only furthering the gap between the haves and havenots.
I’ll give an example of how in-equal this is…
My mother in law, a widow and 87.. Owns her own home in Airport West.. old weatherboard house her and her hubby built in the 60s. Virtually a buldoze job!
However 1/4 acre block prime for the ever growing 4-5 townhouse development site.
Last 5 months she’s had to move in with her youngest daughter due to being unable to look after herself… Her eldest son moved in the A/West house to keep an eye on it and it’s close to his work… Pays gas &elect and mows lawn etc.
Anyhow, centrelink has now got wind of it through the age carer nurse now attending her daughter’s home instead of her own home.
Ultimatum now received.. She will lose her age pension entirely in 8months because her home is now deemed a 1.2 mil asset and not the family home!
The old dear is now a wreck.. absolutely devastated asking WHY WHY!
She swears the government just wants her dead!

[kevino]

Originally Posted by hackney

Not if you want a fairly easy life in retirement, I certainly would not want to rely on the Government only pension.I find that scenario quite scary.

Yes it’s a bit light.
You need to own your own home.
And have pensions coming out of husband/wife super funds.

And probably hope for no big medical/ gap expenses.

Renters…
I don’t know how they do it especially singles

[Itsme]

Originally Posted by Trevor 57

I can't access the Pension system until I am 67, not quite there yet

If I was to retire officially tomorrow my wife and I would be screwed from centrelink, I probably get the single pension rate but she gets nothing as she is much younger than me, no super for her as she has always been home for the kids & grand kids
We would survive easily on my super but centrelink (govco) certainly know how to play hard ball.

[Itsme]

Originally Posted by Charliewool

Respectfully I disagree…
An Australian citizen who’s lived and paid taxes all their working life in Australia should automatically qualify… It certainly doesn’t take much to be over the assets threshold nowadays.. You are penalising those that are over this asset threshold simply because they have done ok for themselves… After also probably paying a bucketload more taxes than average Joe
I’m not talking the Lindsey Foxes, the mega-wealthy… They ain’t going to apply anyhow!
This “means testing” crap is totally outta hand and only furthering the gap between the haves and havenots.
I’ll give an example of how in-equal this is…
My mother in law, a widow and 87.. Owns her own home in Airport West.. old weatherboard house her and her hubby built in the 60s. Virtually a buldoze job!
However 1/4 acre block prime for the ever growing 4-5 townhouse development site.
Last 5 months she’s had to move in with her youngest daughter due to being unable to look after herself… Her eldest son moved in the A/West house to keep an eye on it and it’s close to his work… Pays gas &elect and mows lawn etc.
Anyhow, centrelink has now got wind of it through the age carer nurse now attending her daughter’s home instead of her own home.
Ultimatum now received.. She will lose her age pension entirely in 8months because her home is now deemed a 1.2 mil asset and not the family home!
The old dear is now a wreck.. absolutely devastated asking WHY WHY!
She swears the government just wants her dead!

Certainly, no compassion from the government yet the a** wipes in Canberra certainly know how to feather their own nests.

[randel]

Originally Posted by Charliewool

Respectfully I disagree…
An Australian citizen who’s lived and paid taxes all their working life in Australia should automatically qualify… It certainly doesn’t take much to be over the assets threshold nowadays.. You are penalising those that are over this asset threshold simply because they have done ok for themselves… After also probably paying a bucketload more taxes than average Joe
I’m not talking the Lindsey Foxes, the mega-wealthy… They ain’t going to apply anyhow!
This “means testing” crap is totally outta hand and only furthering the gap between the haves and havenots.
I’ll give an example of how in-equal this is…
My mother in law, a widow and 87.. Owns her own home in Airport West.. old weatherboard house her and her hubby built in the 60s. Virtually a buldoze job!
However 1/4 acre block prime for the ever growing 4-5 townhouse development site.
Last 5 months she’s had to move in with her youngest daughter due to being unable to look after herself… Her eldest son moved in the A/West house to keep an eye on it and it’s close to his work… Pays gas &elect and mows lawn etc.
Anyhow, centrelink has now got wind of it through the age carer nurse now attending her daughter’s home instead of her own home.
Ultimatum now received.. She will lose her age pension entirely in 8months because her home is now deemed a 1.2 mil asset and not the family home!
The old dear is now a wreck.. absolutely devastated asking WHY WHY!
She swears the government just wants her dead!

The government wonder why people stash cash in the safe at home....

[hackney]

Originally Posted by kevino

Yes it’s a bit light.
You need to own your own home.
And have pensions coming out of husband/wife super funds.

And probably hope for no big medical/ gap expenses.

Renters…
I don’t know how they do it especially singles

Yup, pretty much.We are lucky to be able to afford private health insurance.it is really tough out there.

[hackney]

Originally Posted by randel

The government wonder why people stash cash in the safe at home....

Ah, good old Malcolm Fraser! Money under the mattress!Remember that quote still!

[kevino]

And.
Life wasn’t meant to be easy

[Tassie f100]

Originally Posted by hackney

Not if you want a fairly easy life in retirement, I certainly would not want to rely on the Government only pension.I find that scenario quite scary.

Probably as a single $400/ week is a bit tight.but $800 week for couples is quite comfortable

[Charliewool]

Originally Posted by Tassie f100

Probably as a single $400/ week is a bit tight.but $800 week for couples is quite comfortable

Is it that much per couple for full pension?
I thought closer to 650-700?

[Charliewool]

Ok, appears you’re correct…
“Single: $1,026.50 per fortnight (approximately $26,689 per year) Couple (each): $773.80 per fortnight (approximately $20,119 per year) Couple (combined): $1,547.60 per fortnight (approximately $40,238 per year)”

[Tassie f100]

Originally Posted by kevino

That’s a fair proposition.
It’s a bit unfair that the Uber rich in Nz get it no questions asked especially if it’s funded by a national deficit ie borrowed money.
I do think the Aus system could be simplified a bit - it’s wierd to know that beaureaucrats trawl over our financials.

And those same beaurocrats retire on Govt funded super which they seem to get a lot more than the 9.5% or so that the normal people get.Don’t know but wouldn’t surprise me if they can retire at 60 rather than 67 like everyone else.

[Itsme]

Originally Posted by Charliewool

Is it that much per couple for full pension?
I thought closer to 650-700?

Last time I looked think it was tad over $900 for single & about $1450 couple.

[Paul22]

If I can put in my two bobs worth. If you've just retired or retirement is imminent may I suggest you contact the Centrelink Financial Information Services Officer on 13 2300 to make an appointment to see if/how you may be eligible for the Age Pension. The Age Pension is a right enacted by law. Also Centrelink regard the legislation covering the AP as 'beneficial' legislation i.e. their job is to ensure you can qualify - subject to the rules of course. FISOs are extremely helpful as they explain how to maximise your opportunity to claim the Pension. My experience with them - on several occasions - has been extremely beneficial to me and my wife. The service is free and comprehensive.

[thefargo]

Originally Posted by Tassie f100

And those same beaurocrats retire on Govt funded super which they seem to get a lot more than the 9.5% or so that the normal people get.Don’t know but wouldn’t surprise me if they can retire at 60 rather than 67 like everyone else.

politicians can access their super when they leave office. there is no age requirement for them. I was told that by a state politician. I worked with his wife and at a social function I asked what his future plans were, as he was voted out. He didn't seem to be overly worried about finances.

This is going back about 20 years now. it may have changed but I doubt they would have made it harder for themselves.

[karj]

Congratulations on your retirement Trev, I hope you enjoy it!

I've read some of the posts in this thread and thought it was worth mentioning that the Federal Labor Government has just changed the eligibility requirements for the Commonwealth Seniors Health Card in favour of retirees. From 4 November 2022, the income threshold has increased from $57,761 for singles, $92,416 for couples, and $115,522 for separated couples (separated by illness), to $90,000 for singles, $144,000 for couples, and $180,000 for couples separated by illness.
So even if your assets make you ineligible for the Aged Pension, you can still possibly get a Commonwealth Seniors Health Card when you meet the Aged Pension age, and the income test (although deeming rules do apply to assets for the purpose of calculating income for the income test).


Also... at the risk of starting a flame war (lol)
I would highlight to those who find themselves "self-funded" and frustrated about their ineligibility for the Aged Pension that:

a) some of you had access to extremely generous defined benefit schemes that younger generations will never see the likes of.
b) the taxpayer has already provided you with extremely generous tax breaks to encourage additional Super contributions that have enabled you to be "self-funded."
c) the extremely generous tax breaks for concessional Super contributions have been capped in recent years such that younger Australians will not have the same ability to contribute as much additionally into Super as you have been able to.
d) The transfer balance cap for Superannuation is indexed and means that you can currently convert $1.7 million into a completely tax free income stream (or $3.4 million tax free income stream for a couple).
e) Your investment earnings in that income stream up to the transfer balance cap are tax free.
f) Money in excess of the $1.7 million transfer balance cap can be left in the accumulation phase where investment earnings are taxed at 15%.
g) Your home is not included in the asset test for the Aged Pension.
h) If you are a homeowner, a single person can have $622,250 in assets in addition to their home, and a couple $935,000 before you lose access to your part Aged Pension.
i) If you are a homeowner, a single person can have $280,000 in assets in addition to their home, and a couple $419,000 and get the full Aged Pension.
j) If you are not a homeowner, those thresholds are higher.
k) If you have "too much" to be eligible for the Aged Pension, you may qualify for the Commonwealth Seniors Health Care Card, which now has much more generous income limits.
l) You may also be eligible for the seniors and pensioners tax offset (SAPTO)
m) If you have been able to retire with the ASFA comfortable retirement standard (aged 67 with 545k in Super for a single and 640k in Super for a couple), you are in the top 20% of retirees (according to ASFA).

So when some of you may be feeling a little salty about how diligently you "self-funded" yourselves and are no longer eligible for a full or part Aged Pension, just remember that the taxpayer probably gave you a great deal of help getting there, that you are better off than 80% of other retirees, and that the older generation have in fact pulled the ladder up behind themselves with respect to some of the Super perks that used to be available... much in the same way that occurred with HECS-HELP for tertiary education.

Please don't misunderstand me, I'm not saying that "self-funded" retirees haven't worked hard, sacrificed, or don't deserve a comfortable retirement, but a little perspective perhaps?

[Tassie f100]

Originally Posted by Itsme

Last time I looked think it was tad over $900 for single & about $1450 couple.

Per fortnight

[Tassie f100]

Originally Posted by thefargo

politicians can access their super when they leave office. there is no age requirement for them. I was told that by a state politician. I worked with his wife and at a social function I asked what his future plans were, as he was voted out. He didn't seem to be overly worried about finances.

This is going back about 20 years now. it may have changed but I doubt they would have made it harder for themselves.

Pretty sure now they have serve 20 years or so

[b0son]

Originally Posted by T3rminator

He lasted 6 months in retirement, and decided to come back to work. Said he needed a "purpose", and got sick of golf .

There's no reason that purpose has to be work. Take up a hobby that you want to excel at. Without work in the way, you'll have plenty of time to work on it.

[hackney]

Originally Posted by Paul22

If I can put in my two bobs worth. If you've just retired or retirement is imminent may I suggest you contact the Centrelink Financial Information Services Officer on 13 2300 to make an appointment to see if/how you may be eligible for the Age Pension. The Age Pension is a right enacted by law. Also Centrelink regard the legislation covering the AP as 'beneficial' legislation i.e. their job is to ensure you can qualify - subject to the rules of course. FISOs are extremely helpful as they explain how to maximise your opportunity to claim the Pension. My experience with them - on several occasions - has been extremely beneficial to me and my wife. The service is free and comprehensive.

Yes, we found our local office very helpful, we thought we earned way to much, but as it turned out we were eligible for a small amount. The Health card is what we were after.

[LG17]

Originally Posted by Trevor 57

Too much assets and money in the bank LG

Not even part?

They look at me and laugh.
I only own one property!
My wife is a teacher.

[T3rminator]

Originally Posted by thefargo

politicians can access their super when they leave office. there is no age requirement for them. I was told that by a state politician. I worked with his wife and at a social function I asked what his future plans were, as he was voted out. He didn't seem to be overly worried about finances.

This is going back about 20 years now. it may have changed but I doubt they would have made it harder for themselves.

I don't know of one politician retiring on struggle street. Don't they get something generous like 15% super, and on a fair wicket in salary too? Compound over 20-30 years, that's a HUGE difference over average Joe. Makes delaying the increase in average Joe's super very hard to swallow.

I'm not banking on the pension system to be there when I retire. I think its going to look very different in 20-30 years time.

Originally Posted by b0son

There's no reason that purpose has to be work. Take up a hobby that you want to excel at. Without work in the way, you'll have plenty of time to work on it.

I'm only guessing, but I think at work he felt needed and valued. Like if he didn't do the job, there were consequences. Personally, I think volunteer work is a good option, but some of the activities can be quite tedious.

[buggerlugs]

Originally Posted by T3rminator

He lasted 6 months in retirement, and decided to come back to work. Said he needed a "purpose", and got sick of golf .

Sick of Golf

And went back to work

Something wrong with him............

[FTE217]

Originally Posted by buggerlugs

Sick of Golf

And went back to work

Something wrong with him............

haha, yer I found that example pretty funny and its the classic "horse's for course's"......
Observations some people retirement just doesn't suit them others fall into it like a glove as they say.
Being a average hack golfer who knows his limitations - I'd say the bloke just found it too hard and thought s tuff this I'm better off back at work.
Whereas many say, your worst day at golf is still better than being in the office.
I also understand if in retirement, I couldn't bare playing 2/3times a week, like "bowlers" as well, for it would drive me nuts.
When IF the time comes soon I plan to step off the business rat race I sure will still need some kind of work/business stimulous - the mention earlier of helping out with Salvo or charity/soup kitchens etc assistance is appealing.

Anyway all the best Trevor57, it sure bares challengers ahead and adjusting but I'm sure you'll end up ok mixed with your driving hols etc and sit back and think, WGAF this is life now knocking back a ale or 6.