Australian Aged Pension

[Pattaya57]

6 minutes ago, Fat is a type of crazy said:

I wonder if you asked for 7 months it might be different. If your working or have  other income there's the medicare surcharge levy which kicks in for the months you suspend too which makes it less worthwhile.  

There was 2 months minimum and no maximum other than a maximum cumulative total of 2 years suspended. I was retired so didn't care about the medicare surcharge as it didn't apply. I did my suspensions in 2-4 month blocks

 

Edited 12 hours ago by Pattaya57

[scorecard]

And if you cannot work due to illness and so on?

 

And from my understanding  in the US Social Security System there's  a cap on what you can withdraw - and the cap is basically what you have personally contributed. 

 

So if you personal Social Security fund is dry at 80 years old - bad luck? 

 

I have several US colleagues hre in LOS, that's the way they explain it, and they are dreading the day it runs out.

[scorecard]

1 hour ago, gearbox said:

Ain't gonna work unless the super withdrawal rules are changed and the lump sum withdrawals are banned. I know people who moved to $4 million to lower their assets and get a pension.

 

The US has much better structured pension system, you have to work and save in order to have money in retirement.

 

But there's more detail which is not all that positive. 

[gearbox]

57 minutes ago, Fat is a type of crazy said:

Can I ask what you mean? You mean they took money out of their super after retirement and spent it or put it somewhere so they were within the limit by the time they get to 67. Are you saying you think you should have to take it as an income stream or something. 

Sorry I missed "home" from the post. They bought expensive property to remove assessable assets and get full pension. Their children are having their inheritance funded by the taxpayers.

[Lacessit]

2 hours ago, gearbox said:

 

 

The US has much better structured pension system, you have to work and save in order to have money in retirement.

A fat lot of good that does if you are forced to pay extortionate amounts for medical insurance, or shell out a fortune for pharmaceuticals to keep you alive.

 

Then there's Florida, where retirees are being made homeless as a result of government condo policy.

 

IMO anyone who prefers the American social security system over Australia's has rocks in their head.

 

 

[Lacessit]

1 hour ago, gearbox said:

Sorry I missed "home" from the post. They bought expensive property to remove assessable assets and get full pension. Their children are having their inheritance funded by the taxpayers.

I seriously doubt anyone can get a full pension and own a very expensive home without having very high council rates and property insurance costs.

 

Getting a part pension is a different matter. Even $1 of part pension gains admittance to a number of welfare privileges. That's where the accountants of rich people get very creative.

 

IIRC Labor brought in a limitation on the amount that could be held in a super fund at concessional rates of tax on earnings. I expect that noose will be tightened further.