So your entire premise about Boomer financial legacy plans is now holed below the waterline, yet you still desperately want to believe that Boomer = absolutist SKIN philosophy, and that your PLS and PPoR asset test policies are the only solution to your imagined dastardly Boomer-generation SKIN master-plan.
It's never been clear why, mind you.
But with Boomers now evidently all too prepared to support their offspring as estate legatees, in world league table-topping proportions no less, it seems you've invented a new bete noire to pick on...saving for a holiday!!!
Just what, exactly, is the connection between the Australian propensity to take a holiday, and you PLS/PPoR asset test schemes???
The study is not about Boomers. The majority of boomers intend to leave nothing, unlike the Lucky generation who do. Peter proved that.
peter fraser
22 Sep 2014, 09:39 AM
This report looks entirely logical to me. Our pension scheme is designed to allow home owners to keep their house and if they have some savings or a pension they can with a part pension manage until death and then leave their house to their children. It's unlikely that the average household would also have a mountain of cash stashed away.
If you look at the value of $501,999 expected to be left to the offspring it closely resembles the median price of a house in Australia.
If you look at the value of the expected inheritance of $176,814 in the USA it closely resembles the median price of a home in the USA. So what we have is evidence that similar people in a similar society with a similar aged pension system expect to do much the same thing.
Who would have thunk it?
Not much evidence of grannies sitting in $5M mansions with $1M in cash drawing a pension of $1 per fortnight though.
Lets face it leftie, Pauls theory is nothing more than a complete beatup.
Bullshit Petert, the study is of the current retirees, not boomers. I have provided evidence of boomer intentions. Find me a study of boomers attitutudes to inheritance to prove your point. Not ,my, ideas Peter.
Not much evidence of grannies sitting in $5M mansions with $1M in cash drawing a pension of $1 per fortnight though.
Lets face it leftie, Pauls theory is nothing more than a complete beatup.
Pauk thinks there is a 'problem' with grannies living in expensive PPORs with no other assets/income receiving the state pension. But he hasn't quantified the amount of grannies that are living in expensive PPORs and receiving the pension. It's not worth changing a govt system, often at great expense, if it only effects a small number of people.
He hasn't considered how people will avoid the impacts of his manifesto either - making it ineffectual. I'd imagine a great number of income/asset poor retirees (but with expensive PPORs) will simply transfer their PPOR to their kids 5 years before applying for the pension.
"72% of Australians aged over 50 say they would rather spend their money in order to enjoy their retirement than leave it for their kids, according to new research commissioned by Apia, the leading Australian insurer for over 50s." http://m.apia.com.au/aussie-baby-boomers-kill-inheritance
But the question of "do you intend to leave your children anything" is a loaded one. Seriously, what would most of us answer in response to that question, regardless of our actual intentions?
Deliberately leaving nothing goes against the prevailing broader social expectations and answering no in response to such a question invites the judgment of others. Remember Alfred Kinsey who did volumes of research into human sexual behaviour? Many of his conclusions were based on answers given in interviews. Others have since pointed out that his research suffered from a serious oversight - it assumed that respondants were telling the truth. Women and homosexuals in particular would have felt compelled to lie because of the social stigma attached, especially in the era the research was done, probably not so much nowdays.
So while these surveys are interesting I think the value of them might be limited due to uncertainty surrounding the accuracy.
The question was "Do you expect to leave an inheritance to your children?"
Not do you "intend" to leave an inheritance.
With the question as asked not being 'loaded' as such I'd suggest.
"The Grattan Institute estimates that $3bn in pensions goes to people with assets, including their home, of more than $1m, while another $5bn in pension payments goes to people with assets between $750,000 and $1m. As a result, one dollar in every five paid to pensioners goes to those with assets worth more than $750,000."
"THE pension system is so badly organised that more than 50,000 people with disposable income of more than $60,000 receive the age pension and a further 14 per cent are paid the benefit despite their assets being worth $1.6 million."
"The Grattan Institute estimates that $3bn in pensions goes to people with assets, including their home, of more than $1m, while another $5bn in pension payments goes to people with assets between $750,000 and $1m. As a result, one dollar in every five paid to pensioners goes to those with assets worth more than $750,000."
This is not shocking Paul. It is good. It means that there is at least some chance of some accumulated wealth being passed on to heirs through strong multi-generational families - Even those families that are 'only' middle class!
Although as I have opined before, it seems to me that Socialists want to destroy both the middle class and strong multi-generational families. Which makes perfect sense as Socialists can only ever really hope to wield real power in broken and dysfunctional societies; Societies where the hopes and aspirations and strengths of the middle class have been destroyed. So I understand why Socialists see it as shocking.
"The Grattan Institute estimates that $3bn in pensions goes to people with assets, including their home, of more than $1m, while another $5bn in pension payments goes to people with assets between $750,000 and $1m. As a result, one dollar in every five paid to pensioners goes to those with assets worth more than $750,000."
"THE pension system is so badly organised that more than 50,000 people with disposable income of more than $60,000 receive the age pension and a further 14 per cent are paid the benefit despite their assets being worth $1.6 million."
I doubt that many have an issue with tightening rules so that less people game the system and the benefits are more targeted to those who really need them, but this represents a wholesale change from your "bash a boomer who owns a house" attitude that you displayed before.
Well done for understanding your past mistakes.
Any expressed market opinion is my own and is not to be taken as financial advice
I have seen a figure of 400,000 pensioners who have a $1m property or more getting the pension. I will research it...
There are around 2m aged pensioners. So 20% get somepension who have an 'expensive' PPOR. How much pension do they actually get? How big is this 'problem'?
$1m gets you a pretty grand house in Brisbane, but only a bit above median in Sydney.
Quote:
Zaph, they can have substantiualy(sic) cash as well as a PPOR and still get a pension.
Assets for a couple is $286.5k then the pension starts reducing and cuts out at $1.134m (all excluding PPOR).
"72% of Australians aged over 50 say they would rather spend their money in order to enjoy their retirement than leave it for their kids, according to new research commissioned by Apia, the leading Australian insurer for over 50s." http://m.apia.com.au/aussie-baby-boomers-kill-inheritance
I've pointed out your lack of understanding research, but you choose to ignore it.
I'll ask you one last time... 1. What business is it of yours who leaves what to who? 2. I have no kids - who should I be forced to leave my inheritance to? Can I be allowed to leave it to my cat?
There are around 2m aged pensioners. So 20% get somepension who have an 'expensive' PPOR. How much pension do they actually get? How big is this 'problem'?
$1m gets you a pretty grand house in Brisbane, but only a bit above median in Sydney.
Assets for a couple is $286.5k then the pension starts reducing and cuts out at $1.134m (all excluding PPOR).
I've pointed out your lack of understanding research, but you choose to ignore it.
I'll ask you one last time... 1. What business is it of yours who leaves what to who? 2. I have no kids - who should I be forced to leave my inheritance to? Can I be allowed to leave it to my cat?
It is my business, if I am paying a pension to someone who should not get it. Leave it to you cat if that is what drives you.
I doubt that many have an issue with tightening rules so that less people game the system and the benefits are more targeted to those who really need them, but this represents a wholesale change from your "bash a boomer who owns a house" attitude that you displayed before.
Well done for understanding your past mistakes.
Gov could overcome all the hassles by just removing the assets and income tests on the aged pension:
"You are an inherently valued elder member of our society; Thank you ... Here's your pittance. Enjoy!" LOL
Just a bit more seriously though, doing so could actually even remove a lot of the pressure on people to accumulate wealth for their dotage. Which just might actually help to take some of the pressure off house prices - But then I forgot; We don't actually want to reduce house prices pretty obviously.
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