Treasurer Scott Morrison says to forget about relying on the age pension

[Tassieboy]

Treasurer Scott Morrison has put ordinary Australian workers on notice that they should no longer expect to receive an age pension from the government when they retire.

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Finally we have someone with the foresight and fortitude to speak about the aged pension farce. About 10% or $41 billion of government expenditure is spent on the aged pension. Unfortunately, often through incompetent personal financial management, many elder Australians - including my four grandparents - are reliant on this welfare.

The time has come for Australians to demonstrate enhanced sensibilities towards their finances and not rely on welfare in their last decades. It is difficult to comprehend how anyone who has managed to work largely interrupted their entire lives can retire in such poverty they seek financial bailouts. The disabled and other vulnerable people of course still need to be looked after.

Over the next 30 years the pension needs to be slowly abolished. Better education on financial awareness is needed to be taught in schools; some people need to learn to control consumerism addictions; and government contributions to young workers' super funds could be explored. Perhaps tax rates also need to be cut and the minimum wage slightly raised.

 

[pazza]

It's a tough one.

The best way to fix the problem is to make superannuation more accessible across the board. Up the Superannuation guarantee to a level where people are in a better position to have the retirement self-funded. Right now it's pretty difficult.

Also, make it easier for people to retire. Telling them oh you have to work until your 70 isn't helping. What that equates to is working till you drop dead, which often happens.

Many people retire to become carers to their partners or elderly parents. This has happened in my case with my parents. Reward their sacrifice.

 

[The Punter]

As a society we won't accept our elderly living in poverty.

I find it hard to see how the sentiment of the Treasurer's statement will be translated into reality.

 

[Lebbo73]

Finally we have someone with the foresight and fortitude to speak about the aged pension farce. About 10% or $41 billion of government expenditure is spent on the aged pension. Unfortunately, often through incompetent personal financial management, many elder Australians - including my four grandparents - are reliant on this welfare.

The time has come for Australians to demonstrate enhanced sensibilities towards their finances and not rely on welfare in their last decades. It is difficult to comprehend how anyone who has managed to work largely interrupted their entire lives can retire in such poverty they seek financial bailouts. The disabled and other vulnerable people of course still need to be looked after.

Over the next 30 years the pension needs to be slowly abolished. Better education on financial awareness is needed to be taught in schools; some people need to learn to control consumerism addictions; and government contributions to young workers' super funds could be explored. Perhaps tax rates also need to be cut and the minimum wage slightly raised.

A lot of the working class are retiring with homes that weren't built for old couples. They were built for families. They are encouraged by the current welfare system to stay in the family home so as to keep minimal cash in the bank so it won't affect their pensions. The elderly on pensions need to be encouraged to downsize. Single retirees on pensions need to be encouraged to move into retirement villages or to share with other single retirees.
People should not be a drain on the welfare system during their retirement and then die and leave hundreds of thousands or even millions of dollars to their families.
I don't know who would even be game enough to try an end the generous system that exists now. Heck, most people were against paying a small fee for a visit to the Doctor. Good luck trying to convince the Senate. However, something will have to give eventually. The increasingly dire budget deficits will demand it.

 

[The Punter]

A lot of the working class are retiring with homes that weren't built for old couples. They were built for families. They are encouraged by the current welfare system to stay in the family home so as to keep minimal cash in the bank so it won't affect their pensions. The elderly on pensions need to be encouraged to downsize. Single retirees on pensions need to be encouraged to move into retirement villages or to share with other single retirees.
People should not be a drain on the welfare system during their retirement and then die and leave hundreds of thousands or even millions of dollars to their families.

Lebbo makes an interesting point here.

It is conceivable that if retirees who owned large homes in established suburbs were to sell their homes en masse, the increase in supply would force down prices. It is also theoretically another way of imposing an estate tax - ensuring people pay for their own retirements through the realisation of assets.

Plenty of food for thought here.

 

[madmug]

Finally we have someone with the foresight and fortitude to speak about the aged pension farce. About 10% or $41 billion of government expenditure is spent on the aged pension. Unfortunately, often through incompetent personal financial management, many elder Australians - including my four grandparents - are reliant on this welfare.

The time has come for Australians to demonstrate enhanced sensibilities towards their finances and not rely on welfare in their last decades. It is difficult to comprehend how anyone who has managed to work largely interrupted their entire lives can retire in such poverty they seek financial bailouts. The disabled and other vulnerable people of course still need to be looked after.

Over the next 30 years the pension needs to be slowly abolished. Better education on financial awareness is needed to be taught in schools; some people need to learn to control consumerism addictions; and government contributions to young workers' super funds could be explored. Perhaps tax rates also need to be cut and the minimum wage slightly raised.

I dont know how old you are but most people were never given the opportunity to have superannuation. Schemes only existed for business management people & public servants. Most working people spent their money building a house & a family. After working for 40 years & paying taxes, they felt the aged pension was a right. No one challenged that at the time. Keating was attacked for his foresight in this matter by the LNP. Funny how things change!

And things are changing. All this lazy bunch of politicians have to do is tighten up the deductions given to the big earners. Deductions should only be allowed up to $1million. After that they should pay normal taxes on their investments.

Downsizing should occur. The home should be considered part of their asset structure. That will affect mainly the big end of towners so the LNP wont want to go their.

 

[pazza]

Let's look at it.

Do people actually know how much it costs to move into these retirement villages? Starting price is around the $200000 mark no matter what the suburb or provider. In short downsizing into one is not cheap.

 

[HollyZholm]

Let's look at it.

Do people actually know how much it costs to move into these retirement villages? Starting price is around the $200000 mark no matter what the suburb or provider. In short downsizing into one is not cheap.

It might be cheaper to process them (retirees) offshore .

 

[rodney hoo]

Let's look at it.

Do people actually know how much it costs to move into these retirement villages? Starting price is around the $200000 mark no matter what the suburb or provider. In short downsizing into one is not cheap.

Exactly lots of people live in the family home for years, they like it, it's familiar. Why should they be forced to move and by the time all the stamp duties removal cost etc there ain't much money left.
Tax the multinationals first but that's to hard.

By the way I retired early and will never get a pension but there are people that require them.

 

[Xsess]

I assume Scott will also reign in politicians pensions?

 

[CbayT]

It might be cheaper to process them (retirees) offshore .

That's where I am going this is increasingly popular. Most Asian countries will give you long term visas and want your super money

 

[pazza]

Exactly lots of people live in the family home for years, they like it, it's familiar. Why should they be forced to move and by the time all the stamp duties removal cost etc there ain't much money left.
Tax the multinationals first but that's to hard.

By the way I retired early and will never get a pension but there are people that require them.

While on my sopabox about these retirement homes..buyer beware. Unless you are really, really, lucky, the standard of care is at best ok at worst rather distressing for everyone concerned. They are dodgy to a fault in most cases.

 

[little graham]

I can't believe what I'm reading. Whatever it is we had here, we owe it to these old fogies who's blood sweat and tears built.

There is a massive issue with to many people hitting pension age for our revenue to handle. Five thousand dollah helicopter rides and paying people smugglers not to smuggle, really helps.

 

[rodney hoo]

While on my sopabox about these retirement homes..buyer beware. Unless you are really, really, lucky, the standard of care is at best ok at worst rather distressing for everyone concerned. They are dodgy to a fault in most cases.

I can't believe what I'm reading. Whatever it is we had here, we owe it to these old fogies who's blood sweat and tears built.

There is a massive issue with to many people hitting pension age for our revenue to handle. Five thousand dollah helicopter rides and paying people smugglers not to smuggle, really helps.

Yes to both the above, a lot these retirement organisation are run by religious groups and no tax as well. I'm not certain of the tax rules are now but they buy cars for no taxes and sell them two years later for more than they paid and no tax. It's a rort but let's stick it up the poor pensioners.

 

[madmug]

I can't believe what I'm reading. Whatever it is we had here, we owe it to these old fogies who's blood sweat and tears built.

There is a massive issue with to many people hitting pension age for our revenue to handle. Five thousand dollah helicopter rides and paying people smugglers not to smuggle, really helps.

They are actually called Mum & Dad!

 

[Todman]

Paul Keating in the 1980's said there would not be an aged pensions in the 2020's.

Top up your super he said.

How many of us took his advice ?

 

[madmug]

Paul Keating in the 1980's said there would not be an aged pensions in the 2020's.

Top up your super he said.

How many of us took his advice ?

If you were raising a family & paying off a mortgage, their was only so much you could 'put away' until the Super schemes off today were started. And we know which party fought against it!

 

[little graham]

Paul Keating i

?

What money pensioners have, they can thank campaigner exclusively for.

 

[Maggie5]

While on my sopabox about these retirement homes..buyer beware. Unless you are really, really, lucky, the standard of care is at best ok at worst rather distressing for everyone concerned. They are dodgy to a fault in most cases.

A lot of them are very depressing places and 'care; is questionable. Wouldn't like to see any of my relatives in one.

 

[Ripper]

After working for 40 years & paying taxes, they felt the aged pension was a right

Income tax used to have a pension component listed.
The original selling point for income tax was to pay retirement income.
Successive Governments have re invented the wheel.

There was a further development of specific relevance to social security in 1945. The Commonwealth split the personal income tax into two components. One, the social services contribution, was to be used exclusively to finance social security cash payments. Revenue from the contribution was paid into the National Welfare Fund, from which all such cash payments were to be made, but there was no link between personal contributions and entitlements.

 

[Ripper]

Paul Keating in the 1980's said there would not be an aged pensions in the 2020's.

Top up your super he said.

How many of us took his advice ?

1990's, Most people were too preoccupied trying to pay their mortgages and hang on to their house and business with 17%+ interest rates.

 

[Nightowl]

Perhaps soylent green is the solution. Start with the residents of Canberra..

 

[Dry Rot]

Finally we have someone with the foresight and fortitude to speak about the aged pension farce. About 10% or $41 billion of government expenditure is spent on the aged pension. Unfortunately, often through incompetent personal financial management, many elder Australians - including my four grandparents - are reliant on this welfare.

The time has come for Australians to demonstrate enhanced sensibilities towards their finances and not rely on welfare in their last decades. It is difficult to comprehend how anyone who has managed to work largely interrupted their entire lives can retire in such poverty they seek financial bailouts. The disabled and other vulnerable people of course still need to be looked after.

Over the next 30 years the pension needs to be slowly abolished. Better education on financial awareness is needed to be taught in schools; some people need to learn to control consumerism addictions; and government contributions to young workers' super funds could be explored. Perhaps tax rates also need to be cut and the minimum wage slightly raised.

So I assume you also support abolishing middle class family welfare payments?

 

[Lebbo73]

So I assume you also support abolishing middle class family welfare payments?

This consistent fallback question is just childish. Those of us on the 'Right' side of center not only support that, we also support cuts right across the budget.
If govt spending isn't slashed in the next few years, the slowdown that is coming will result in $100b+ annual deficits.

 

[Schism]

Let's look at it.

Do people actually know how much it costs to move into these retirement villages? Starting price is around the $200000 mark no matter what the suburb or provider. In short downsizing into one is not cheap.

yep I have a mate who works at Fullarton Lutheran homes in Adelaide (Fullarton obviously, not a bad area) and its 450k to have a chance of getting in now