Welcome Guest [Log In] [Register]


Reply
  • Pages:
  • 1
  • 2
Harsher pension asset test
Topic Started: 16 Oct 2016, 11:59 AM (1,957 Views)
zaph
Default APF Avatar


Rufus
16 Oct 2016, 07:15 PM
It probably won't make any difference to wealthy people who will be self sufficient in any case.
Quote:
 
Yes anyone on a pension simply can't afford to maintain a $5M house. They won't be able to afford the upkeep or the rates for long. Something more modest is a better plan.

But Pauk told me Australia was full of oldies in trophy homes claiming the full pension.

Quote:
 
Most people will need a pension to make it in retirement, and they will make their savings plans based on this means test. The lowering of this assets test will simply encourage those people to save less.

I disagree. Most people will not even notice these changes when considering their retirement savings plans. Those close to retirement age, yes.

Profile "REPLY WITH QUOTE" Go to top
 
herbie
Member Avatar


zaph
16 Oct 2016, 07:28 PM
I disagree. Most people will not even notice these changes when considering their retirement savings plans. Those close to retirement age, yes.
Tha word "pernicious" cums ta mind ...
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
Profile "REPLY WITH QUOTE" Go to top
 
Jon Snow
Member Avatar


Rufus
16 Oct 2016, 06:02 PM
Well the incentive for the average couple is now to own their home, have superannuation of about $350K each, and spend everything else.
There is little incentive to save during their lifetime. If they still don't meet the assets test then a nice holiday in Spain should do the trick.
There is no incentive to save during anyone's lifetime. The incentives are aligned with consumption and borrowing from the future.

The couple pension is about 34K per year. SIS is about 5%, so draw down would be 35K for the couple, which makes 79K nett, or the equivalent of 94K per year gross, with no accommodation costs, so a true equivalent of 134K per year gross, without having to raise a finger.

My heart f***ing bleeds for them.

Speak when you are angry and you will make the best speech you will ever regret.
Ambrose Bierce
Profile "REPLY WITH QUOTE" Go to top
 
Rufus
Member Avatar


zaph
16 Oct 2016, 07:28 PM
But Pauk told me Australia was full of oldies in trophy homes claiming the full pension.
I have never met anyone with a $5M house who is aiming for an aged pension. I guess it must happen but it would be very rare.


Quote:
 
I disagree. Most people will not even notice these changes when considering their retirement savings plans. Those close to retirement age, yes.


OK you're 59 and now planning your retirement. Unfortunately you don't have millions saved or in your super, but you do notice that with your current savings and likely super fund growth you will be just over the assets threshold, so you won't get a pension.

Question -

1. Do you try to save an extra $1M on your income of $85K pa over the next 6 to 8 years

or,

2. Do you say to the other half - f**k it we won't get a pension unless we spend $50K so lets plan that holiday of a lifetime so they we can get the pension and have one last hoorah.
Take risks - if you win you will become wealthy, if you lose you will become wise
Profile "REPLY WITH QUOTE" Go to top
 
herbie
Member Avatar


Rufus
16 Oct 2016, 07:56 PM
I have never met anyone with a $5M house who is aiming for an aged pension. I guess it must happen but it would be very rare.





OK you're 59 and now planning your retirement. Unfortunately you don't have millions saved or in your super, but you do notice that with your current savings and likely super fund growth you will be just over the assets threshold, so you won't get a pension.

Question -

1. Do you try to save an extra $1M on your income of $85K pa over the next 6 to 8 years

or,

2. Do you say to the other half - f**k it we won't get a pension unless we spend $50K so lets plan that holiday of a lifetime so they we can get the pension and have one last hoorah.
Option 2 is tha obvious pick for most I'd say.

Unless ya really luv ya work.

'N I reckon I've only ever cum across 4 older dudes in me time wot really luvved their work - Wif 2 of 'em bein' FIFOs on mines who really loved money 'n really didn't like their wives - 'N wif me havin' met their wives I can understand why they'd rather be in tha bush workin' than home wif their wives.

'N another dude being an optometrist who had ta give work away when his eyesight started failing - I shit you not! :) Tho a really nice man he was.

Then there was tha bum doctor who just got his jollies 'n laughed out loud at havin' people tell him just how much their arseholes hurt 'n precisely why 'n when - Bit of a sick f***??? But hey he was good fun anyway - 'N let's face it, who'd really choose ta have a miserable bum doctor if ya can have a happy one? :)
Edited by herbie, 16 Oct 2016, 08:31 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
Profile "REPLY WITH QUOTE" Go to top
 
zaph
Default APF Avatar


Rufus
16 Oct 2016, 07:56 PM
I have never met anyone with a $5M house who is aiming for an aged pension. I guess it must happen but it would be very rare.





OK you're 59 and now planning your retirement. Unfortunately you don't have millions saved or in your super, but you do notice that with your current savings and likely super fund growth you will be just over the assets threshold, so you won't get a pension.

Question -

1. Do you try to save an extra $1M on your income of $85K pa over the next 6 to 8 years

or,

2. Do you say to the other half - f**k it we won't get a pension unless we spend $50K so lets plan that holiday of a lifetime so they we can get the pension and have one last hoorah.
Ask Blondie.

You will need a few bottles of gin.
Profile "REPLY WITH QUOTE" Go to top
 
Foxy
Member Avatar
Zero is coming...

herbie
16 Oct 2016, 08:25 PM
Option 2 is tha obvious pick for most I'd say.

Unless ya really luv ya work.

'N I reckon I've only ever cum across 4 older dudes in me time wot really luvved their work - Wif 2 of 'em bein' FIFOs on mines who really loved money 'n really didn't like their wives - 'N wif me havin' met their wives I can understand why they'd rather be in tha bush workin' than home wif their wives.

'N another dude being an optometrist who had ta give work away when his eyesight started failing - I shit you not! :) Tho a really nice man he was.

Then there was tha bum doctor who just got his jollies 'n laughed out loud at havin' people tell him just how much their arseholes hurt 'n precisely why 'n when - Bit of a sick f***??? But hey he was good fun anyway - 'N let's face it, who'd really choose ta have a miserable bum doctor if ya can have a happy one? :)
A member at out club had his prostate checked.

He asked the Doctor is it normal to have an erection during an exam??

The doctor said oh yes it is common are you getting one??.

My friend said no doctor, but you are. :bl:


New rules being mulled for Australian pensions.

1) If applicant has heartbeat no pension rule applies.
2) If applicant has no heartbeat no pension rule applies.

Peter :bl:
Edited by Foxy, 17 Oct 2016, 09:52 AM.
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
Profile "REPLY WITH QUOTE" Go to top
 
zaph
Default APF Avatar


Rufus
16 Oct 2016, 07:56 PM
OK you're 59 and now planning your retirement. Unfortunately you don't have millions saved or in your super, but you do notice that with your current savings and likely super fund growth you will be just over the assets threshold, so you won't get a pension.

Question -

1. Do you try to save an extra $1M on your income of $85K pa over the next 6 to 8 years

or,

2. Do you say to the other half - f**k it we won't get a pension unless we spend $50K so lets plan that holiday of a lifetime so they we can get the pension and have one last hoorah.
Quote:
 
I have never met anyone with a $5M house who is aiming for an aged pension. I guess it must happen but it would be very rare.

I'm quite near Bogan, so I can take you down to Woodridge to visit the millions of pensioners with $5m houses. We'll drop by Stretton on the way and pick up Pauk. I hope you don't mind taking the bus?

Quote:
 
2. Do you say to the other half - f**k it we won't get a pension unless we spend $50K so lets plan that holiday of a lifetime so they we can get the pension and have one last hoorah.

My experience of elders who have assets enough to get a small pension is that they are extremely frugal. If these changes make them go on a spending spree then it's not done it's job.
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
ZetaBoards - Free Forum Hosting
Free Forums. Reliable service with over 8 years of experience.
« Previous Topic · Australian Property Forum · Next Topic »
Reply
  • Pages:
  • 1
  • 2



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy