pensioners complain about pension

[seank]

Might be a touchy subject, however should they get more benefits if they own their own home? How can a person work all their life and end up with nothing? Should we have to take responsibility ? My parents worked hard enough all their lives to make sure they don't have to rely on the pension, and I'm doing the same. Does anyone have the same mindset?
Thoughts anyone?
http://video.msn.com/?mkt=en-au&brand=optus&tab=m164

 

[moyjos]

yeah you are right... it is a touchy subject

Both my parents and the in-laws own their own homes. Worked hard, retired and bought homes in "not great areas" around 15 years ago (one lot in Bundy, other lot on Bribie Island both 1 or 2 blocks off the beach) Now capital gains has caught up and they are in "trendy" areas and the rates are HUGE

If anything seniors of any type need some form of rate relief.

My 2c

Sue

 

[Xenia]

It is definately a personal financial responsibility.

 

[Novar]

If you own your own home and are having difficult living day to day, it is time to sell up ...invest ....rent and have a better standard of living. Not much point dying of hunger in a house worth $300,000 +++.

There are many of the mentality that it is their childrens inheritance. I can see why they think this but I personally would rather help my children get on their feet while they are young and then see them prosper while I'm alive.

For those that are renting, on the pension with nothing to fall back on, I'm not sure what the solution is, bar the government getting tough and cutting benefits to all those bluggers on the dole, single parents who produce children for a living and giving it to those more worthy like those pensioners.

The need to take responsibilty for your own retirement has been news for 20 years now, those retiring today should be looking out for there own needs and the pension should be a supplement if at all.

BTW...out of interest .. Found out recently that you can only own 5 acres of land to claim the pension. Know somwone who has 40 acres and have een planning their retirement around it. To buy 5 acres would cost more than they paid for their 40 acres which is 50 minutes from anywhere.

 

[lizzie]

it's all a very touchy subject because there is the "i am entitled to a pension" mentality in this country.

now, i'm not saying that people who work all their lives don't deserve a pension - but when the pension was initially introduced in the 1930, the average lifespan was in the 60's ... so you went to school til 15, worked 45 years, retired and died 5 years later.

the problem nowadays is that people go to school until 18, work 42 years, retired and then die 20 years later (on average).

so instead of supporting someone for 5 years of their retirement life, suddenly pensions need to support someone for 20 years - unaffordable for the country.

personally i think extending the retirement age to, say 70, would go a long way towards relieving this huge financial burden on the working population.

my thoughts only.

 

[islandgirl]

Just remember too that it is a generational thing. People in that age bracket were always brought up with that mentality. Now we know that with an aging population in Australia it is unsustainable and we are teaching our kids (hopefully) that they need to provide for themselves

Yes we all have responsiblity for our own financial future. I've seen many cases where people are complaining about not being able to survive on the pension yet own a fortune in assets.

Those are the people that need to face reality. Those that have nothing do need help, its not a black and white issue. These people are in the situation because that is how they were brought up, there was and is not any good financial education. They were brought up to beleive that you get a good job and own your own home. We now know that this is not the best way to wealth and financial independance.

It is easy to sit back and say it is not my problem, these people have caused there own problems, but these people are the backbones of our current society and we have learnt from their mistakes.

 

[wylie]

I feel sorry for people who need a pension who have genuinely lost everything through being swindled or having had major health issues that has cost them their incomes.

I also feel sorry for those (mainly women) who were not allowed to work, and even those that did, who have a pittance in superannuation, if any at all, I agree that for at least 20 or more years it has been drilled into us that we cannot rely on the pension, and we need to plan to support ourselves.

What did these people do with their money? I know it cost a lot to bring up children, it still does, but we are planning for our future, why didn't they listen up and do the same.

My parents have friends who are on the pension, but they spent their working lives spending every cent on expensive clothes and alcohol and holidays and golf and.... and..... and..... They don't whinge but they have to be careful and watch every cent.

What irks me is if one of my parents needs nursing home care down the track and it will cost (in today's money) $500K PLUS nearly $1000 per week to go into a place. A pensioner will just need to give the home 80% (about) of their pension. So my parent, who also have worked hard all their lives (but made an effort to save more than they spent) will be subsidising several pensioners.

Of course, I would rather be in this position than having nothing, but I do find it difficult to feel sorry for many of these people, especially those who are younger and had time to plan for their futures better.

On 612 ABC talkback last week a few pensioners called in complaining about costs going up. One was in a $300 per week house at the coast, on his own, and his uni student daughter paid for his food. He said he liked to live in a nice house and could rent cheaper but didn't want to. Another said his landlord had just bought the house he was in and his rent was going from $185 to $250 but he said he knew it was fair and that he had been getting very cheap rent.

Madonna King harped on and on about his rent going up by $65 in one hit. He explained AGAIN that he had been very lucky and that the rent would be market rent. He didn't have a problem with his rent, but she was hanging on to that like a dog on a bone.

I was so mad, I got home and emailed her some information about we poor landlords having to "subsidise" these people and some other facts about our holding costs, and how we will in the future be subsidising those who haven't bothered to build a nest egg, and gave the example of my father and his possible nursing home costs compared to the "poor" pensioner who gets it for almost free. I have been waiting to hear whether she reads my email or gets back to me for some clarification. Better not hold my breath, as it obviously doesn't suit her to put the other side of the story.

 

[crc_error]

There are many of the mentality that it is their childrens inheritance. I can see why they think this but I personally would rather help my children get on their feet while they are young and then see them prosper while I'm alive.

maybe its the children's responsibility to look after them? since they expect the inheritance?

 

[Aaron Sice]

my dad is 55 and believes he will get the pension at 70 when he retires.

i keep warning him but he won't listen.

there will always be a pension, but whether it relates to current living costs is another matter.

 

[Perp]

If you own your own home and are having difficult living day to day, it is time to sell up ...invest ....rent and have a better standard of living. Not much point dying of hunger in a house worth $300,000 +++.

There are many of the mentality that it is their childrens inheritance.

Yes, they should sell or reverse mortgage their home. Leaving an inheritance is something you do if there are assets left over when you die. If you can't meet your living costs now, why should the government give you a pension so that you can keep the house to leave to the kids? The pension in this case is effectively a donation to the kids!

now, i'm not saying that people who work all their lives don't deserve a pension - but when the pension was initially introduced in the 1930, the average lifespan was in the 60's ... so you went to school til 15, worked 45 years, retired and died 5 years later.

the problem nowadays is that people go to school until 18, work 42 years, retired and then die 20 years later (on average).

so instead of supporting someone for 5 years of their retirement life, suddenly pensions need to support someone for 20 years - unaffordable for the country.

The governments of the past screwed up royally by funding the pension out of current income, rather than putting aside some portion of taxes to fund future retirement debt, as we do now through superannuation. The result is that the BBs and Gen Xers are funding both their own retirements through super AND their parents/grandparents' retirements through taxes. Thank God this country is prosperous enough that we will survive this burden. Gen Y and future generations shouldn't have this problem, though.

Just remember too that it is a generational thing. People in that age bracket were always brought up with that mentality.

That's true. Frustrating, but true - if we were of that generation, most of us would have done the same.

What irks me is if one of my parents needs nursing home care down the track and it will cost (in today's money) $500K PLUS nearly $1000 per week to go into a place. A pensioner will just need to give the home 80% (about) of their pension. So my parent, who also have worked hard all their lives (but made an effort to save more than they spent) will be subsidising several pensioners.

ABSOLUTELY, Wiley. I don't begrudge the pension to those who didn't save (well, not too much ) because there wasn't that mentality during their working lives; they were conditioned to rely on the pension. But I do resent it that self-funded retirees are penalised for their foresight; it's outrageous.

Madonna King harped on and on about his rent going up by $65 in one hit.

I have also heard Madonna King on this topic; she needs educating.

 

[Mr. Fabulous]

If anything seniors of any type need some form of rate relief.

No they don't. They're adults, they can deal with their own issues.

Mark

 

[want2bewealthy]

They should feel lucky, apparently I dont get the pension when I retire, theres a certain cutoff year, there will be alot of people homeless when this takes place but I bet the government will give them payment in the end because of the crisis and Ill get nothing.. you know how it works.

 

[kathryn d]

The property we are in the middle of buying (and each of us take a unit to live in) currently have tenants.

One couple is close to retirement age. They pay extremely low rent and are concerned of our intent. The current owner has told them we are a couple that buys rentals.
The owner doesn't want to be the "bad guy" and tell his tenants the truth, that we will be removing all the tenants and residing there.

They will probably have a hard time finding another place for the price they are prepared to pay.I would feel sorry for them, but they had a lifetime to look after themselves.They have lived in this apt for the last 18 years!!!

Do they think they will always have low rent ?

 

[MissMuffitt]

They should feel lucky, apparently I dont get the pension when I retire, theres a certain cutoff year, there will be alot of people homeless when this takes place but I bet the government will give them payment in the end because of the crisis and Ill get nothing.. you know how it works.

I have tried to google about this cut off year for aged pensions but can not find any info.....

 

[natmarie73]

What irks me is if one of my parents needs nursing home care down the track and it will cost (in today's money) $500K PLUS nearly $1000 per week to go into a place. A pensioner will just need to give the home 80% (about) of their pension. So my parent, who also have worked hard all their lives (but made an effort to save more than they spent) will be subsidising several pensioners.

Wylie, if you and your parent have a trusting relationship could they transfer their assets into your name at this time? That way they wouldn't have to pay so much for the nursing home would they? You would be then able to give them some money each week (under the table) so they could enjoy the money they worked hard for instead of subsiding those who spent spent spent all their lives.

 

[Aaron Sice]

they're all bludgers.

get em working i say.

j/k

 

[marg4000]

We are currently looking into the care options for my mum.

If she goes into high care (nursing home) there is NO bond.

If she goes into low care, there is a bond (she is self funded) BUT it is in the form of an interest free loan. The home gets to keep a monthly amount for 60 months (5 years) set by the government that amounts to about $18K altogether. The rest is refunded to her (or her estate) when she leaves the low care (hostel) accommodation.

The bond is negotiable, but even with mum's high net worth the homes we have spoken to are talking around $120K.

We are grateful that mum is well resourced, this is making our task so much easier as thankfully we are not constrained by being limited to what she can afford, or the limited number of places available to people reliant totally on the pension with no other assets.
Marg

 

[wylie]

Hi Marg. That is interesting to hear about the $120K bond. My elderley ex-neighbour has just paid $500K bond at a place in Manly. She has gone into the mid-level care, but if she needs higher level, she stays in the same room, which is great. They also take money for five years (plus most of her pension) but it is a lot more than $18K from what she has told me. Ultimately, the remainder of the $500K less the 5 years worth of payments will be left in her estate.

I would love to hear where the $120K place is. Of course, one day we will have to put applications in at several places, but a PM from you would really be appreciated.

Hi Natmarie. Thanks for your suggestions. We have a very complicated set of circumstances with two "normal" siblings and one brother who my parents want to ensure has a place to live for his lifetime and money to upkeep that place and pay for some things for him, but don't want his only son to inherit any more than the other grandchildren.

Hence, a family trust has been set up and things will moved over gradually, to lessen the considerable costs associated with doing this. This should protect their future estate from any claim by this grandchild's mother as well as protecting the assets from my brother's wife or my husband, should anything untoward happen (divorce/death/remarriage).

Your idea of my parents gifting to us has been considered, but my dad is 75 and if they gift something, it is deemed as being their asset for five years afterwards, so this is not ideal.

Anyway, I cannot begin to say how complicated this whole thing is, but we have spent months getting it as "right" as we can. The stress of doing all this has been huge on my mother, but it is now a "happening thing" so should be easier from now on.

Having money can be great, but gee it causes some big problems sometimes.

 

[natmarie73]

they're all bludgers.

get em working i say.

j/k

Can't - health and safety issue. Imagine the compo buisinesses would have to pay for all those broken hips.

Wylie, I forgot about your family situation so yeah maybe it wouldn't be an easy option at all. My mother has already stated she will not go into a nursing home, so that is one worry we don't have, and since she is pretty much reliant on the pension anyway it wouldn't cost her much if she did.

I have already decided that instead of going into a nursing home when I'm old I'm just going to go on one cruise after the other. Apparently it's much cheaper, the food is way better, and of course there is always a doctor on board he he.

 

[Aaron Sice]

Can't - health and safety issue. Imagine the compo buisinesses would have to pay for all those broken hips.

i didn't think of that. maybe they should all go out an get hip replacements first then. or is that elective surgery? i can't keep up these days.

a full time cruise would be a good idea, if you keep in shape you might pick up all those desperate 45yo, childless divorcees for some fun.

ah the shame of it all. can you tell the kinda old person i'll be? yep, old and grumpy.