The cost of housing gets a special mention in the latest YourLifeChoices Retirement Affordability Index. Produced by YourLifeChoices and The Australia Institute, the index aims to help you understand how much money you currently need to live at various levels and lifestyles in retirement.
The Australian Social Security system ensures that citizens have the financial resources for at least a frugal, minimal standard of living when they’re unable to earn an income from work. In this, the second, and final, post about the Australian Age Pension and residency, the focus is on checks that applicants are really part of the Australian community.
The Australian Social Security system ensures that citizens have the financial resources for at least a frugal, minimal standard of living when they can’t earn an income from work. However, the Australian taxpayer is wary of paying Age Pensions to people who haven’t really been part of the Australian community.
The way we think about money largely determines how successful we become at managing cash flows and accumulating wealth. Some people find the subject of money of little interest. On the other hand, some can be so obsessed with money and may be so driven that they become greedy—out of control even.
The Age Pension is a means-tested income support benefit for Australians old enough to be eligible for it. Originally, the Age Pension age was the age when individuals were thought to be ‘too old to work for a living’. For 2018, the Age Pension age is 65 years and 6 months. But it has increased over recent decades and will continue to increase.
This is the second of a two-part series about unexpected or forced retirement that may come from ill health, an accident, retrenchment, caregiving demands or a number of other circumstances.
An unexpected or forced retirement may come from ill health, an accident, retrenchment, caregiving demands or a number of other circumstances. This post is the first of two, with the follow-up post next week. Both are looking at strategies for handling unexpected retirement.
Australia’s social security system delivers income support payments to those unable to provide adequately for themselves. That includes retirees. We don’t earn entitlements to social security because we’ve been taxpayers, but because we lack financial resources and are currently unable to work, or are retired.
The evidence is in. Those who seek help from a financial planner/advisor will feel more confident about their finances for retirement than those who don’t.
In the last Australian Federal Budget, an amendment to the taxation law will allow eligible Australians over the age of 65 to sell their existing home and put up to $300,000 of the proceeds into superannuation. While it’s pleasing to see tax relief built into the system, there haven’t been any changes to regulations concerning the Age or Service Pension. This means that only some people will be able to take full advantage of the new rules. Some could be worse off financially.