Thread: Pension Age may move to 70

Originally Posted by crispy

The thing is they keep changing the asset limits. Im 61 and just realised I will not get a pension. Also if you are not on a full pension you are not entitled to discounts on rates and rego etc.

The point made elsewhere in this thread is that you shouldnt be entitled to a pension or any discount rates on anything if you can afford to live without them. i.e., if you own a house and have savings/income above a certain amount.

Pension is a safety net for those who would otherwise be destitute.

I know exactly what the super fund is. Individuals super contributions are paid into consolidated revenue and then when they retire the super payout is paid as a pension from consolidated revenue. In effect interest has been paid though it would be almost to calculate the rate - it is money that the govt has never had to borrow so the interest rate of the fund is effectively the rate that the govt would have to borrow funds at.

It is called a defined benefit superannuation scheme and most people who worked in the public sector up to a few years ago would have been in one.

They have real pros and cons - if you fit the profile they can have definite advantages but if you don't they can be bad - eg if you leave the scheme early and roll over your contributions to another super scheme you only get your contributions with no interest or additional payments - so in some you can pay in for almost 20 years then change jobs and you get no interest on your contributions.

The other disadvantage is that you pay tax on your payout where the pension is tax free and you get none of the advantages even if the super pension is about the same as an old age pension.

I was in one and for me I could have retired at 38 and got a superannuation benefit from then but would have been less than the old age pension.

Well over 20 years later when I reach the old age pension age (will be 65 for me) my defined benefit super pension will be less than the old age pension but I will still have to pay tax and I paid into super for over 40 years which as age 65 will be less than the old age pension and those people get that without having to paid in anything.

Yes I do think the politicians super is overly generous but there are many people on defined benefit super pensions who are not nearly well off.

Super payouts - no matter whether they are defined benefits or interest only are that - super with individuals making contributions.

Centre link pensions are different.

Garry

In the UK a pension is not a safety net . You pay national contributions for years and it is an investment that is returned when you stop work. Australia stuffed up 20 years ago when they went down the american path.

Originally Posted by crispy

.....Also if you are not on a full pension you are not entitled to discounts on rates and rego etc.

Not true in NSW - even if you're only getting a small part of the age pension you get the discounts

Originally Posted by crispy

In the UK a pension is not a safety net . You pay national contributions for years and it is an investment that is returned when you stop work. Australia stuffed up 20 years ago when they went down the american path.

I disagree. We made the smart choice to get people to be responsible for their own future success by making superannuation compulsory and funded by employers. It's not a perfect system, but its better than a pension system - as we are seeing right now. As the population ages their contributions can't fund the pensions. It's like the worst reverse ponzi scheme ever devised - and the society loses.

A pension should be a safety net for those who find themselves in strife - not your sole source of income after a lifetime of work.

Originally Posted by akelly

A pension should be a safety net for those who find themselves in strife - not your sole source of income after a lifetime of work.

Refer to Post 139 in this thread.

Originally Posted by Brian Hjelm

Refer to Post 139 in this thread.

A link in case you want to look.
Pension Age may move to 70

The whole super scheme is the biggest con job ever

Tis just a scheme to remove the savings of the workers

And give it the the wealthy -- ie the GFC none of the rich

Lost any money or suffered the Banks made a fortune

Care of the tax payers the only Peeps to lose the workers

AS soon as the markets recover enough they will do it again

Tis a government sanctioned ponzi scheme