Living overseas on the Pension

[madmug]

So people that retire without ever owning a home get everything for nothing then? If that were the case, I'd never bother to buy one, I'd just rent and spend. When I retire, I'd just claim a pension and rent assistance.

In an ideal world, the governments want the elderly to sell up their homes and downsize, a couple of problems that spring straight to mind is the prohibitive cost of actually doing this, if the person / s have ongoing medical issues and networks that help care for them, they have to move away from these services.

It's a tough fix. I wouldn't begin to know how to balance it out. Either one side is going to get smashed or not.

I think the idea of 'reverse mortgage' should be looked at. Allowing those on a pension to pay their bills & be able to get those little extras, like health insurance & taxi to shops etc. And still live in their community & home.

Those who rent need help. Many never had the sort of jobs or access to superannuation or enough money to buy a house, or long term illness etc, when raising a family. They shouldn't have to live in poverty now.

 

[Sainteric]

My father-in-law, has lived and worked here for over 40 years. He's eligible for a pension now and receives one. As soon as he goes to NZ for a visit, they stop paying him until he gets back. (pretty sure he's not an Aussie citizen). Drives me mad with his bitching and moaning about it.

That sounds weird must be a kiwi citizen I wonder if he went via Singapore or somewhere closer would it stop.

 

[Herne Hill Hammer]

I think the idea of 'reverse mortgage' should be looked at. Allowing those on a pension to pay their bills & be able to get those little extras, like health insurance & taxi to shops etc. And still live in their community & home.

Those who rent need help. Many never had the sort of jobs or access to superannuation or enough money to buy a house, or long term illness etc, when raising a family. They shouldn't have to live in poverty now.

I'm pretty sure there already is reverse mortgages, they were popular and advertised in the msm about a decade or so ago but you don't seem to hear anything about them now. I have a feeling people that decided to use them as an option were just getting robbed blind, just like going into a nursing home.

 

[Herne Hill Hammer]

That sounds weird must be a kiwi citizen I wonder if he went via Singapore or somewhere closer would it stop.

Yeah, pretty sure he's still a Kiwi, I have a crack and fire him up when he starts whinging about politics and tell him he doesn't get a say.

 

[Maggie5]

I think the idea of 'reverse mortgage' should be looked at. Allowing those on a pension to pay their bills & be able to get those little extras, like health insurance & taxi to shops etc. And still live in their community & home.

Those who rent need help. Many never had the sort of jobs or access to superannuation or enough money to buy a house, or long term illness etc, when raising a family. They shouldn't have to live in poverty now.

A friend of mine looked into the 'reverse mortgage' a couple of years ago and I think that Centrelink also offers it as an option. They didn't take it up as the problem was the interest rate was similar as the normal interest rate on homes purchased. Pensioners can take out a RM over the age of 62 and if they happen to live into their nineties, they may be very little left by that time as fees and interest eat it up very quickly depending on value of home.

If they want to encourage pensioners taking it up, should be at a lower interest.

They didn't go through with it.

 

[madmug]

A friend of mine looked into the 'reverse mortgage' a couple of years ago and I think that Centrelink also offers it as an option. They didn't take it up as the problem was the interest rate was similar as the normal interest rate on homes purchased. Pensioners can take out a RM over the age of 62 and if they happen to live into their nineties, they may be very little left by that time as fees and interest eat it up very quickly depending on value of home.

If they want to encourage pensioners taking it up, should be at a lower interest.

They didn't go through with it.

Ok.

Its still potentially a useful tool for retirees. The Feds need to look at it as it may help both the budget, the health system & the pensioners.

I'm sure its quite doable with the right support.

 

[Rob]

Ok.

Its still potentially a useful tool for retirees. The Feds need to look at it as it may help both the budget, the health system & the pensioners.

I'm sure its quite doable with the right support.

It would be a better idea to allow pensioners to downsize and not lose their pension.

AFAIK there are no concessions if a pensioner sells their $1m house, buys a $500k unit and pockets the difference. $500k is then added to their assets for the pension means test.

 

[Herne Hill Hammer]

It would be a better idea to allow pensioners to downsize and not lose their pension.

AFAIK there are no concessions if a pensioner sells their $1m house, buys a $500k unit and pockets the difference. $500k is then added to their assets for the pension means test.

How much does it cost them to sell their home and buy a new one all for the privilege of moving away from family/friends and their safety net in general?

 

[Rob]

How much does it cost them to sell their home and buy a new one all for the privilege of moving away from family/friends and their safety net in general?

Not sure that's relevant.

The problem is that doing so (and consequently benefitting everyone) seemingly penalises them.

 

[Herne Hill Hammer]

Not sure that's relevant.

The problem is that doing so (and consequently benefitting everyone) seemingly penalises them.

Correct, that's why I posed the question so I'm not sure how it isn't relevant, you've basically posted as much in your 2nd line so I'm not too sure what you're on about.

 

[Rob]

Correct, that's why I posed the question so I'm not sure how it isn't relevant, you've basically posted as much in your 2nd line so I'm not too sure what you're on about.

Personal costs are determined by the person in control. They're not being forced to sell, and it shouldn't impact government policy on the matter. That's why it's (IMO) not really relevant.

 

[Hawk Dork]

If you own your house

Our oldies have never had it so good
According to the centre’s director, Professor John Piggott, of the University of NSW, “our analysis shows that standards of living of older people have improved over the last decade . . . Households reaching retirement age today have incomes about 45 per cent higher than those reaching the same milestone 10 years ago.”
That’s a real increase of 45 per cent, after taking account of inflation.
How could it be possible?
Because the pension is indexed to wages rather than prices, and wages grow by a per cent or two a year faster than prices (until recently, anyway).

About 40 per cent of renters aged 65 and over are below the poverty line. And, among those of them living alone, the poverty rate rises to 60 per cent.

https://www.theage.com.au/business/...ave-never-had-it-so-good-20181103-p50dt3.html

Unfortunately home ownership rates will drop so we really need to see an increase in rental assistance now and into the future.

So it does make sense to go OS if you are renting and retired