Parents getting aged pension

Can be legit. Renters, retire and use super to pay cash for a PPOR.

 

I wrote this about 3 years ago now:

Legal Tip 178: Double Dipping with the Pension https://www.propertychat.com.au/community/threads/legal-tip-178-double-dipping-with-the-pension.32379/

 

Sounds pretty dodgy if you ask me!

 

Reasonably common, I gather.

Thanks - to me that's not worth blowing my 'rainy day money' if I was that close to the pension. But I know many have the opposite view.

 

But if no receipts we checked you could always just withdraw couple k a week and then trot down to the local centreline and then get a part pension whilst the mattress is bulking up at home! Yes opportunity costs with having ing cash doing nothing but the oldies are front to not wanting to spend money. Part of the 6 basic fears, fear of poverty/fear of running out of money! All in the mind!

 

[QUOTE="pippen, post: 964842, member: 6558" Part of the 6 basic fears, fear of poverty/fear of running out of money! All in the mind![/QUOTE]

This is very real and evident among so many oldies. Even my own parents, they live a great lifestyle (they were never going to get the pension ever), probably better than most. And I tell them to spend even more but they don't want to. They'd rather leave it to me (hey I'm not complaining) but I would like them to spend a lot more. They say their current level of spending is more than enough and they are content. My dad once said to me " I fear we're your insurance policy if you foolishly bung everything up one day".....

 

This is very real and evident among so many oldies. Even my own parents, they live a great lifestyle (they were never going to get the pension ever), probably better than most. And I tell them to spend even more but they don't want to. They'd rather leave it to me (hey I'm not complaining) but I would like them to spend a lot more. They say their current level of spending is more than enough and they are content. My dad once said to me " I fear we're your insurance policy if you foolishly bung everything up one day".....[/QUOTE]

Same situation here, pleading with them to spend more but I guess if one works and saves from a young age from a different country it is hard to flick the switch and consume and spend and keep up with the Joneses. Considering they got to this position by saving a considerable amount of their income.

 

Yes, being in the demographic, I have encountered a few with that mindset. Very tiring and I have to keep my mouth firmly shut.

To me it's mind blowing some will dispose of thousands of income producing assets merely to get an aged pension and associated benefits. It doesn't make any sense to me to forego $50k or more of income in order to receive a lesser income, especially when the tax on the $50k is probably zero if a couple.

But that's the way it is.

And it's going to get worse in some respects with a number in Government whining we're being too frugal with our superannuation when retired according to reports I have seen.

And on that if any in Government or in the superannuation industry read this, please rack off and stop telling us how we should be spending out superannuation. We may actually enjoy and prefer a relatively frugal life-style.

 

I think at the end of the day we sometimes want for them what WE would want. Not necessarily what actually makes them happy...

 

This applies to both of you as well.

 

Tell me about it!!!! My yearly spend with my partner is less than the aged pension for a couple (say 25 to 30k) and to think that is supposed to be below the poverty line???!!!!! Plenty of chicken breast is had in my household!!!

 

I honestly don't hold back from spending these days. Life is waaaaay too short and you never know when your time is up. The whole point of having money is so it enhances your life, not dictates it.

As a side note, if you want me to spend even more.... I can always provide my BSB.....

 

But I will admit I will structure my finances a while lot better than my parents when I hopefully transition to that phase of my life. All in part due to the smart ppl here on PC as well as actually paying for some advice within 5 or 10 or so years of pulling the pin to structure my finances properly.

 

I have no doubt you are doing well enough without my assistance.

In any event, I have my children's account details and so:

 

We are fully self funded, no pension.

But due to reduced deeming rates, we did qualify (finally) for a senior health care card, which gives us #1 and #2 above.

#3 is available through Medicare and other Govt schemes.

Never needed #4 so don’t know, but any doctor or pharmacist can review medication.

#5, plus electrical rebate, through State Govt rebates.

So, for us, a pension card would only have a few additional benefits.

 

Financial Mentor has good calculators too, US though

 

Retirement income promise relies on spending capital
For those struggling to know how to spend in retirement, well the government now wants to help .

 

Do tell? Required to travel first class Canberra to Sydney when I don't want to (or go to Sydney just yet for that matter.) Not allowed to purchase less expensive cuts of meat when Wagyu will do. Never permitted to buy coffee when it's on special.

Oh well, gotta keep someone happy I guess.

 

Guess some need to justify their jobs by coming up with these 'bright' ideas.

 

OK I capitulated and read it.

"That's the message from the Government, and it will soon impose obligations on all super funds, including SMSFs*, to provide a plan to maximise this form of income."

* What? Even single member funds? The member would be more than well aware of their financial circumstances and requirements. The Fund's Trustee and I communicate quite regularly. All day in fact. I cannot shut the bugger up.

"Covenant operational from 1 July 2022. It requires every super fund to provide a document:

“… outlining their plan to assist their members to achieve and balance the following objectives:

1. maximise their retirement income
2. manage risks to the sustainability and stability of their retirement income; and
3. have some flexible access to savings during retirement.""

I don't need no document to achieve that.

You're right @monk but it is consistent with pronouncements from a number of industry funds and the Commissioner of Superannuation (?) in the recent past.

WOFTAM.