Retirement – oh what a year!

What a year it’s been for retirees and those planning to do so.

What a year it’s been for retirees and those planning to do so.

In general, Australian retirees, whether on a full or part Age Pension, or self-funded, are still suffering the affects of the GFC. Bank interest rates remain stubbornly low and whilst this is fuelling a boom in property prices, it’s not doing much for those on fixed retirement incomes. The dismissal of the Labor Government means its promised increases to the superannuation guarantee contribution will not proceed, so future retirees will have lower (enforced) savings and the decision by the incoming Abbott Government that we did not need a Minister for Ageing tells us a lot about what is not a priority for the Coalition.

Pre-election we were told that the budget was in crisis, post-election it seems Mr Hockey still feels the same way. Apart from the fact that this continual talking down of the economy will result in a self-fulfilling prophecy, it also means that those on an Age Pension won’t receive an increase any time soon.

Overall, there is a massive ‘risk-shift’ occurring with retirement income. Recent reports from the Productivity Commission and the Grattan Institute have both recommended raising the retirement age even high to 70 years (it is moving to 67 by 2023) and forcing retirees to access the wealth in the family home, to use it as retirement income or for aged care costs. So entitlements we believed to be enshrined in the Australian ‘fair go’ society are now under siege from a successive Federal Government which have systematically failed to plan for an ageing society. Apparently it is the boomers fault if they hit retirement unprepared. I don’t mind shouldering my share of the burden, but shouldn’t our governments have woken up to this silver tsunami before now?





    COMMENTS

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    AlbertC
    30th Dec 2013
    6:34am
    i said it before and will say it again if we are being hit with ridicules pension age increases
    if we have to endure this crap then so should all pollies and i firmly believe that they should be on the same rules that ordinary Aussies are. after all they are not gods even if they think they are it is a case of one for all and all for one rise up Aussies and be counted . have a nice day.
    Tassie Devil
    30th Dec 2013
    8:57am
    Totally agree with you AlbertC
    Happy New Year
    pixii
    30th Dec 2013
    10:37am
    All politicians have ageing parents , so will the politician's cfamily homes they probably lived in/ grew up in , and the ageing parents be subject to this nonsense ? As for safety of Superannuation ,! Ha ! If it is compulsory why are the funds not protected , or guaranteed by government ? We have to protect car manufacturers & the like , why was the super not protected from GFC, and super funds playing in American market ? Seems always rules for the rich & "stuff " the others.
    Nan Norma
    30th Dec 2013
    10:53am
    Why always hit the most vunerable yet pay out rediculous sums of money to middle income earning women to have a baby. Social security was set up to help people in need but it seems to have lost direction. Raising the pension age is a farce. We know even over sixties struggle to find employment. Raising the pension age is about saving money by putting older people on newstart.
    Nightshade
    30th Dec 2013
    1:24pm
    It won't be long before we are standing not in a dole cue but a "putting you down now'" said they with a syringe ready in hand cue.
    Happy New Year !
    Hobbit
    30th Dec 2013
    1:44pm
    An awful lot of us Baby Boomers had no opportunity to participate in superannuation as years ago it was only offered to senior management. And it's those early years that create a decent super fund. I put as much as I could afford into super in my 50's but it's now only enough to pay for big ticket items like new appliances (and will run out very soon), nowhere near enough for a pension.
    And I couldn't agree more with AlbertC, if pollies believe the rules for the general public are fair then they must apply them to themselves
    Nightshade
    30th Dec 2013
    2:25pm
    The Political Arena -
    And I say political arena because they are all in on it together, no matter how much they pretend the opposite.
    The political Arena is so petty - why ?
    Every dollar counts ?
    Is that what it is all about ?
    For real ?
    THE BIGGER PICTURE IS THAT AUSTRALIA IS A HOSTILE ENVIRONMENT IN WHICH TO DO BUSINESS -
    THE BIGGER PICTURE IS THAT AUSTRALIA IS A HOSTILE ENVIRONMENT IN WHICH TO INVEST MONIES -
    THE POLITICAL ARENA & THE BANKING/FINANCIAL SECTORS HAVE MADE IT SO -
    Companies /corporations/manufacturing/business/investment monies, do not leave a nation because the environment is conducive to productivity/fertile for it to flourish.
    Australia has had a massive EXODUS especially since the Hawke/Keating era.
    But you know what, the vandals don't seem to care !
    WE MUST ASK - WHY NOT !
    JOSEPH BENEDICT HOCKEY in obedience to Wall Street & Mark Carney the governor of the Bank of England has every intention of bringing into law, a BAIL-IN.
    Not in the interest & obedience of Australia's best interests - HOW CAN THAT BE ?
    Joe !
    What's going on man ?
    You are Australian aren't you ?

    THE BIGGER PICTURE IS WHERE IT'S AT -
    Fostering & encouraging Business Investment - first home grown - & then foreign -
    When I say foreign I do not mean G.M.Holden, Ford, ALCO & the like who were invited to Australia, given everything for free, wrapped in cotton wool, placed on mummies bosum & feed breast milk ( mummies breast milk being THE PUBLIC PURSE) for the duration of their existence in our nation.
    These parasites have no self-respect, nor shame & they need to go -

    In Kelvin Thomson's Wills Report is this article
    "Indonesia Plan to Buy 1 Million Hectares of Australian Land"
    1 million hectares of Australian grazing land - in the name of Indonesia's food self-sufficiency.
    NOT WITH THEIR OWN MONEY I BET.
    NOT WITH A CENT OF INDONESIAN MONEY I BET.
    WHAT I RECKON IS THAT THE PUBLIC PURSE OF AUSTRALIA WILL PAY, TO ENABLE INDONESIA TO SET UP THEIR OWN & SELF-SUFFICIENT - HOME AWAY FROM HOME - COTTAGE INDUSTRY - BECAUSE THAT IS WHAT WE DO BEST - SACRIFICE OUR SELVES TO SELF DESTRUCTION -
    Martyrs is what we are - good little & obedient little martyrs !
    Where Australians will be caused to purchase home grown food, but the profits will be sent back HOME to Indonesia.
    Where Australian farmers will be thrown out into the wilderness to make room for Indonesia -
    THERE IS NO WAY ANY BUSINESS/CORPORATION/INVESTMENT FUND/WOULD INVEST IN A HOSTILE ENVIRONMENT LIKE AUSTRALIA & ESPECIALLY NOT WITH A BAIL-IN.
    SO WHY ARE THEY COMING HERE ?

    I believe that the Australian government has handed over the running & wealth creation responsibilities of Australia, to others than Australian decision-making.
    Now therefore, the Australian government has nothing better to do - but to while away their time playing at Nazi Gestapo types, idly working out ways to squeeze Australians into the misery that is poverty.

    Q:- WHEN DOES ONE BECOME MENTALLY IN-EFFECTIVE
    Q:- WHEN DOES ONE BECOME INCAPABLE TO MAKE CORRECT DECISIONS
    Q:- IS IT NOT WISE & PRUDENT TO HAVE NEUROLOGICAL/COGNOTIVE TESTING FOR THOSE WHO'S RESPONSIBILITY IT IS TO MAKE CRUCIAL DECISION FOR THE WELL BEING & PROSPERITY OF OUR BELOVED NATION - I THINK SO !
    Nightshade
    30th Dec 2013
    2:34pm
    p.s.
    Q:- How can you tell a C.E.O. of a subsidized corporation in Australia apart from the rest of the population ?
    A:- He/She is the one standing around with their hand out for a charitable donation, permanently & continuously .
    Patriot
    30th Dec 2013
    8:00pm
    Nightshade,

    I'd like to ask ONE MORE QUESTION"
    Q: When are we - as the Aust. Tax payer (the only LEGAL Government of Australia) - going to demand that the politicians be held accountable for the treason the are and have been committing now for along time.
    They have been looking after the bankers & Industrialists rather than the Aust. people.
    Not much has changed since the signing of the Magna Carta & Habeas Corpus in 1215. We're back to "Serfdom" as we were than!
    Nightshade
    30th Dec 2013
    2:38pm
    p.p.s.
    Did you know that Holden in Australia, has put a car on the road & several time, that put Mercedes production to shame.
    SO -
    What is it with all the hype over/about the cars that Mercedes makes ?
    thommo
    30th Dec 2013
    7:42pm
    just read on my fb page,busy year ahead,build the new house,2 weeks on a houseboat,then 1 month later,2 weeks in thailand.Husband age 50 has been unemployed for over a year,wife works part time,sold the house and put $530,000 in the bank,getting paid dole by you and i,claiming rent assistance,and takes holidays like this.HAS NO INTENTION OF GETTING A JOB,which is obvious,and yet the govenment still pays out,this money should be going to pensions,and much as i dislike abbott and hockey,DO SOMETHING ABOUT THIS FARCE!!!!
    Nan Norma
    30th Dec 2013
    10:10pm
    i think we all know someone ripping of the system but nothing ever seems to be done about.
    unicorn
    1st Jan 2014
    10:57am
    Nightshade what the hell are you gabbling about Holden made a car better than the Mercedes? What year was that pray tell & what Holden has ever lasted as long as any Mercedes ?
    Jurassicgeek
    3rd Jan 2014
    8:59am
    Over the years Holden made lots of cars better than any mercedes.. What is so special about a Merc? ..an over priced, imported shitbox.,totally unsuitable for our harsh climate and our crap roads...at least with a holden you had some chance of a bit of durability,I should know I have had 13 holdens...
    Anonymous
    4th Jan 2014
    2:45pm
    Unicorn, I've owned over 50 Holdens, and I'm on my 22nd Holden ute - a 1984 WB One-Tonner - and it still goes as well as it did, when new.
    I have to keep knocking back people in the street wanting to buy it!

    I bought this One-Tonner secondhand in 2005, such is my love for these great old Holdens.
    These were the fabulous "Australian-designed and built" Holdens - not this Commodore "world vehicle" crap.

    If Mercs are so great, why is their resale value so poor once they're out of warranty?
    It wouldn't be because their maintenance costs are so huge, once they are few years old, would it?

    Tried a 130,000km dealership service on a Merc lately? It will make your eyes water.
    I can completely overhaul the engine in my One-Tonner for less than the cost of a Mercedes service.
    Anonymous
    4th Jan 2014
    2:46pm
    Jurassicgeek - I had a mate with a Mercedes - and he was so unimpressed with it, he called it his "German Falcon"! LOL
    Nan Norma
    4th Jan 2014
    7:39pm
    Jarrasicgeek. My husband worked 15 years for holden and still ownes a 1981 kingswood, but he still thinks the marcedes is the better car.
    toot2000
    4th Jan 2014
    10:28am
    Just before Christmas the Productivity Commission suggested the government raise taxes, lift the retirement age to 70 and take a slice of a pensioner's home to pay for the old age pension. So who or what is the Productivity Commission? They are government's independent research and advisory body who help government make better choices in the long term interest of Australia. Thank goodness the Abbott government rejected the idea but I'd love to know the truth - what is the true situation with the old age pension, can future governments continue to pay without touching the equity in our homes?


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