Retirement age rise to 70 by 2035

[Mr. Fabulous]

How would you feel if you were two years off preservation age, had been throwing money into super over the last 5 years with the expectation of retiring (self funded) in two years only to be told you'd have to work many more years before you could get your hands on it?

In that situation I would be thinking 'Sucks to be me'. People have had their entire working lives to build a nest egg, if they haven't saved enough, that's their problem, not mine.

The pension isn't an entitlement and is becoming increasingly expensive to administer. Some people might think that my policy isn't fair, but life isn't fair and doesn't owe us diddly.

 

[Beanie Girl]

Has the Media told everyone that it recommends the age pension to be gradually reduced in real terms to reflect 28% of Average Weekly Earnings in that same year it goes to Age 70, rather than the current 27.something % of average MALE earnings? (it was around page 160 on my computer)

Hi Angel, this article in The Age (Fairfax) pointed it out early but the article got pulled off very quickly and has become very hard to find. They buried the article, now only found as a link on a Joe Hockey video reacting to reporters asking 'if the Govt has broken its promise on tax'

By Peter Martin, Economics Editor, The Age

Tax: the flaw at the heart of the National Commission of Audit

What's missing? Tax. The National Commission of Audit has decided not to consider it. That means also not considering something more fundamental: tax expenditures.

Taxation expenditures are government programs that are delivered via tax breaks rather than by direct payments.

Retirement is an example. The government supports well-off retirees via superannuation tax concessions. They cost $27 billion. It supports less well-off retirees by the pension. That costs $41 billion. The commission of audit comes down hard on the pensioners and lets off the superannuants scot-free.
.....

Read more: http://www.smh.com.au/federal-polit...on-of-audit-20140501-zr2oy.html#ixzz30chamthh

 

[Deltaberry]

Good on the government for having foresight. The Abbott Government has done much to fix Australia's black hole deficit in 6 months than the Labor Government did in 6 years.

 

[redwing]

Back to this thread

places to retire cheaply

 

[Beanie Girl]

 

[VYBerlinaV8]

When the age pension was first introduced it was set at an age higher than the life expectancy of a working class male.

The age pension is not an entitlement.

As Mr Hockey says, welfare should be a safety net, not a cargo net.

 

[Beanie Girl]

Overheard in the corridors of Parliament:

The 'Mad' Monk complains: We really should be getting rid of the elderly, the disabled and those who are going to get old and be a burden to the system. They should work and make themselves useful...
Bilb Stooten: Toss them over to us Monk, we could use them as branch stacks for our declining Labor membership
The 'Mad' Monk: I got a better idea, Bilb, we'll hack off Medicare and make it difficult for them to access doctors, make it difficult for carers, and the old geezers will die off quickly (chuckles) They won't last long without THOSE crutches...
Bilb Stooten shrugs: Doesn't bother me, MM. Me and the family are on private health insurance anyway. But I tell you what does bother me, what's this great BIG Deficit tax you're introducing? I know it's going to affect surgeons, finance dealers and mining engineers but most importantly it's going to affect ME (sulks). (Wags a finger at The Monk) You promised, Monk!!!
The 'Mad' Monk: I know, I know, I just couldn't resist. After I killed off the car industry, reduced disability pensions, cut civil servants numbers to the bone in Canberra, put a lot of people out of work from the NBN, science, research, climate commission and soon, renewable energy industry, me and Joe realised 'Strewth, who's left to get our tax revenues from?' So you see, Bilb, a little pain now, but a lot of gain later. Come on, give us a little smile.....DO IT FOR AUSTRALIA! Aussie, Aussie, Aussie, Oi, Oi, Oi!
Bilb Stooten: Egads, I got a great idea! If you got Google, Apple, News Limited and all the other MNCs to pay their fair share of taxes, I won't have to pay this GREAT BIG TAX!
The 'Mad' Monk (flatly): Ain't gonna happen, Bilb.
Bilb Stooten: Why?
The 'Mad' Monk (looking shocked): Sacrilege! Not the Liberal way, Bilb!

 

[joeExpat]

Why shouldn't you be entitled to something you've contributed to your working life? Maybe I've adopted the European way of thinking but I'll certainly be applying for some Swiss pension after the amount of money I've paid into it.

 

[heiding]

i.think.you.should.get.a.retirement.after.contributing.to.society.and.to.super.for.40.years...its.not.like.we,havent.paid.for.it

a.lot.of.things.have.changed.since.they.first.implemented.the.pension....im.......allowed.to.wear.trousers.to.work.now,.for.example.

im.pretty.cheesed.off...i.started.paying.(ie.working).super.when.i.was.17..........i.was.born.in.1966.(which.is.now.bad.luck)...so.thought.id.be...able.to.get.my.super.at.60,.now.i.have.to.wait.ten.more.years???..it.doesnt.matter.if.i.have.other.money,.the.fact.is.that.money.is.mine.and.i.paid.my
contributions.in.good.faith...its.just.been.stolen.


people.will.just.stop.making.contributions,.whats.the.point.of.adding.extra?...

then.we.will.have.the.same.problem.we.have.now.

ps.does.anyone.know.how.to.fix.the.space.bar.on.a.wireless.mac.keyboard?

 

[Blueberry]

Why shouldn't you be entitled to something you've contributed to your working life? Maybe I've adopted the European way of thinking but I'll certainly be applying for some Swiss pension after the amount of money I've paid into it.

Look at how much it costs per person to deliver Medicare, infrastructure etc. How much per person in social security. The "average" person gets way more back in services than they put in. Don't get me wrong, we need these services, it is just that average Joe need a reality check on how much they get compared to what they put in.

 

[china]

Look at how much it costs per person to deliver Medicare, infrastructure etc. How much per person in social security. The "average" person gets way more back in services than they put in. Don't get me wrong, we need these services, it is just that average Joe need a reality check on how much they get compared to what they put in.

Very true. The biggest contributors to government tax revenue receive far less back in terms of government benefits. If I am paying 600k per year in PAYG tax, I am not eligible for government benefits, no pension ever, will mostly utilise private hospitals and have higher super contributions tax. In comparison, the person paying $200 worth of tax is entitled to all government benefits and is essentially freeloading off the 600k per year tax payer who is slaving away to qualify to pay 600k tax.

So in many ways, making the 600k tax payer shoulder all the burden is not fully fair and at risk of sounding controversial, it is perhaps a good thing to restrict pension and other such government benefits.

 

[topcropper]

Very true. The biggest contributors to government tax revenue receive far less back in terms of government benefits. If I am paying 600k per year in PAYG tax, I am not eligible for government benefits, no pension ever, will mostly utilise private hospitals and have higher super contributions tax. In comparison, the person paying $200 worth of tax is entitled to all government benefits and is essentially freeloading off the 600k per year tax payer who is slaving away to qualify to pay 600k tax.

So in many ways, making the 600k tax payer shoulder all the burden is not fully fair and at risk of sounding controversial, it is perhaps a good thing to restrict pension and other such government benefits.

I consider myself very right wing in thinking. However even I think that a tax system that taxes high income earners heavily and low income earners hardly or if at all, is the only fair way. The 600k per year tax payer should be subsidising the low income earner. The 600k per year tax payer doesn't need any assistance from other tax payers. The only benefit he needs is the knowledge that his taxes are helping the lower income earners and the general running of the nation.


See ya's.

 

[china]

I consider myself very right wing in thinking. However even I think that a tax system that taxes high income earners heavily and low income earners hardly or if at all, is the only fair way. The 600k per year tax payer should be subsidising the low income earner. The 600k per year tax payer doesn't need any assistance from other tax payers. The only benefit he needs is the knowledge that his taxes are helping out the lower income earners and the general running of the nation.

So essentially, the person who pays 600k per year in tax is really performing charitable work. In this case, it is probably more beneficial for the nation that the 600k is paid to more efficient and productive organisations who can provide a higher rate of return for sum given than entrust it to government organisations to spend and invest.

When the 600k is given to the tax office, it may well be frittered away at some random bureaucrat and politician's whim. With more private foundations and charitable organisations, there may well be more accountability and professional fund managers to make better use of the funds for the benefit of those in need.

 

[topcropper]

So essentially, the person who pays 600k per year in tax is really performing charitable work. In this case, it is probably more beneficial for the nation that the 600k is paid to more efficient and productive organisations who can provide a higher rate of return for sum given than entrust it to government organisations to spend and invest.

When the 600k is given to the tax office, it may well be frittered away at some random bureaucrat and politician's whim. With more private foundations and charitable organisations, there may well be more accountability and professional fund managers to make better use of the funds for the benefit of those in need.

Sure, everything you said could happen, it may get wasted or frittered away? But Government in Australia is generally not very corrupt, they generally do a good job, and they are doing a good job as this country is a nice place to live for both the rich and poor.

If you truly think politicians are totally useless, then I suggest either of two things? Become one yourself and do a better job, or go and live in another country and see how that goes?


See ya's.

 

[datto]

I think the way this govt is attacking the older generation is just a gutless low act. It seems like the Libs like picking on soft targets - the elderly , the sick, the disabled.

Its like we are back in Nazi Germany. "Youv vill pay!"

Increasing the pension age is the most ridiculous thing I have heard of. Its already at 67. The govt should be bring it down, not up. All this hot air about how bad things are is just baloney, a furphy and the govt will pay at the next election.

 

[Corey Batt]

I think the way this govt is attacking the older generation is just a gutless low act. It seems like the Libs like picking on soft targets - the elderly , the sick, the disabled.

Its like we are back in Nazi Germany. "Youv vill pay!"

Increasing the pension age is the most ridiculous thing I have heard of. Its already at 67. The govt should be bring it down, not up. All this hot air about how bad things are is just baloney, a furphy and the govt will pay at the next election.

You must have been disgusted at Labor increasing the pension age from 65 to 67 then?

 

[Angel]

i.think.you.should.get.a.retirement.after.contributing.to.society.and.to.super.for.40.years...its.not.like.we,havent.paid.for.it

im.pretty.cheesed.off...i.started.paying.(ie.working).super.when.i.was.17..........i.was.born.in.1966.(which.is.now.bad.luck)...so.thought.id.be...able.to.get.my.super.at.60,.now.i.have.to.wait.ten.more.years???..it.doesnt.matter.if.i.have.other.money,.the.fact.is.that.money.is.mine.and.i.paid.my
contributions.in.good.faith...its.just.been.stolen.

Hello Heiding
I don't think this new report is recommending increasing the super withdrawal age to the pension age, does anyone else know for sure? I understand that some people want to increase it. I know it was muted in the Henry Report.

I too expect to get my grubby little hands on it as soon as possible since it is effectively my salary that i have forgone for the past 10 years that i have been paying (a lot) extra into.

 

[datto]

You must have been disgusted at Labor increasing the pension age from 65 to 67 then?

I wonder what the Greens policy on retirement is? Green might be the way to go!

 

[Corey Batt]

I wonder what the Greens policy on retirement is? Green might be the way to go!

I'm sure it's retirement from birth and let big business fund the entire thing.

 

[topcropper]

I wonder what the Greens policy on retirement is? Green might be the way to go!

Sounds like you'd fit right in as a greens voter?


See ya's.