Unretired

[kathryn d]

My journey to be self funded and not reliant on a retirement pension has arrived.

However, I still HATE the fact, that through all the hard work and voluntary self denial,that I will not qualify for many things. Others who have done nothing to prepare for their retirement will be handed all these perks because they are deemed "needy". For the most part, it is a result of their lifestyle, and nothing else.
...rant over

 

[westminster]

I am certain that I need more than 55300 for comfortable lifestyle even as a single. In today's dollars, I need 100k pre-tax and a Senior's Card for peace of mind. With a partner, probably 150k. I think this table has underestimated costs of living in Sydney. With the above estimations, I would have to see bulk billing doctors and be treated in a public hospital. I wouldn't be able to eat out regularly. I would not be able to travel overseas.

Really you'd need that much?
I think with no other debt I'd be comfortable on $55k (or equivalent). Though I'd need more if I wanted to include travel.
I am talking 'retirement' age though. If I was to retire now and LOR then I would need WAY more as we have significant outgoings thanks to 3 children.

 

[wylie]

My journey to be self funded and not reliant on a retirement pension has arrived.

However, I still HATE the fact, that through all the hard work and voluntary self denial,that I will not qualify for many things. Others who have done nothing to prepare for their retirement will be handed all these perks because they are deemed "needy". For the most part, it is a result of their lifestyle, and nothing else.
...rant over

This is exactly how I feel too.

 

[westminster]

My journey to be self funded and not reliant on a retirement pension has arrived.

However, I still HATE the fact, that through all the hard work and voluntary self denial,that I will not qualify for many things. Others who have done nothing to prepare for their retirement will be handed all these perks because they are deemed "needy". For the most part, it is a result of their lifestyle, and nothing else.
...rant over

But being eligible for the pension is nothing to brag about. For those of our parents age they simply didn't have Super around long enough to afford to be self funded retirees and many recently lost much of their Super if they didn't have it in a low risk fund.

For those born after the 1960s they should be prepared to use their super to retire on and if they don't have enough then I pity those as living off a pension sucks.

I plan to do my hard work now so I can retire in comfort - it will be from my investments + Super. No pension.

 

[SENIOR]

I have a seniors card to me its useless.It just takes space in my wallet
There are people out there who have transferred a lot of there assets to there children so they can claim the pension
You have to off load before 65
Now the juicy bit. The children selling there assets and leaving the parents with nothing
Its happening remember the children have partners.So these smart retirees were trying to get a few grand a year from the government and it now cost them there wealth and there family

 

[china]

I have a seniors card to me its useless.It just takes space in my wallet
There are people out there who have transferred a lot of there assets to there children so they can claim the pension
You have to off load before 65
Now the juicy bit. The children selling there assets and leaving the parents with nothing
Its happening remember the children have partners.So these smart retirees were trying to get a few grand a year from the government and it now cost them there wealth and there family

Instead of transferring assets to their children, could these assets be held in a discretionary trust with both children and their own solicitor as trustees so that they can still qualify for pension without losing assets due to money hungry kids and their even more hungry partners?

 

[austini]

... However, I still HATE the fact, that through all the hard work and voluntary self denial,that I will not qualify for many things. Others who have done nothing to prepare for their retirement will be handed all these perks because they are deemed "needy". For the most part, it is a result of their lifestyle, and nothing else. ...rant over

There are some who genuinely need assistance. They have given life their best but sometimes s**t happens. Unfortunately for many it is as kathryn states above.

As for this attitude that one pays taxes all their life so a pension is seen as an automatic entitlement this is rubbish. Taxes are used to pay for roads, schools, hospitals and a thousand and one other services that we all use on a daily basis. The pension is there for the genuine needy, not for those who have the means to save for their future but just live for today and want taxpayers to look after them in retirement. I've lost count of the number of people I've met whose attitude is just p**s your money up against the wall and let the government look after you when you retire.

The sad thing about this is that it is infectuous. My own dad who was born very poor and who had been through the great depression etc was a very low income earner who had next to nothing at the start but made many sacrifices to purchase a number of cheap rental properties over the years. Unfortunately the rent was enough to exclude him and my mother from receiving any pension or benefits but really didn't provide a lifestyle much better than that of those living on the pension when all excluded benefits were taken into account. He saw all of his mates who had lived for today and had never saved a cent living the same lifestyle as him in retirement. Yet he had sacrificed many things over the years that his friends had never done. I still remember with shock him saying "Son, just go out and enjoy yourself and let the Government look after you when you retire - it is not worth the sacrifice". For a man who had worked so hard and sacrificed so much it was as if the system had broken him.

Fortunately I didn't follow his advice but I think you can see how an entitlement mentallity can eventually even infect those who wanted to do the right thing but are eventually broken because they see so much abuse of our entitlement based system.

My rant also over.

 

[kathryn d]

...still a little left over rant here


In Canada we also pay into an insurance plan CCP- Canada Pension Plan. Employees and self employed people are required to pay depending on our income earned that year.. It is an INSURANCE plan. However, it is clawed back, when we make over a certain amount of money.

On top of that there is OAS- Old Age security.
Everyone gets that too, after a certain age....except it is clawed back if you have too much income.
Add in a few supplements, and rebates along the way.

I'm sure it is similar here too.
Yes, I will be better off, after working hard all these years, but this money should be "gravy" on top of our hard work.
Either that, or no one should get it.

 

[Terry_w]

just regarding the asset test for centerlink mentioned above, could one not have most if not all assets in a trust to get around this? just thinking...

Basically, no.

There are complex rules regarding trusts under the social security act. There are a few tests to pass otherwise the trust assets will be classed as your own assets for social security purposes. One test is the control test and control is defined very broadly so you may be stuck if a relative or family member or yourself is the trustee or appointor or director of the trustee, or sometimes even beneficiary.

This is why it is very important to consider pension issues when setting up a trust as you could be affecting family members on the pension.

 

[Terry_w]

Instead of transferring assets to their children, could these assets be held in a discretionary trust with both children and their own solicitor as trustees so that they can still qualify for pension without losing assets due to money hungry kids and their even more hungry partners?

Probably not because of the source test and the control test. The assets would still be classed as there own.

Being trustee is a serious matter too and would be costly if a solicitor would act in this role.

 

[redwing]

Here's what happens when you are forced to work after the age of 70

Youtube Link

 

[investor2009]

Cool thread peeps. We're just focussing on holding what we have and paying outt he mortgage, that's our best move. From there, we don't need to work for the banks anymore and only need 50% of our annual income to live the same or better. But thats still too much for me.. need more passive income, not have to work for it.