Jack the Insider: “No point in saving for your retirement any more”
As we close out 2016, it is well worth reviewing what goals we set ourselves at the start of the year and what we managed to achieve!
As we (in most areas of the country!) enjoy a glorious Australian summer; have we paused to think how the sun will be setting on our retirement days?
Sobering news reported in the Australian newspaper yesterday, by @JacktheInsider:
On January 1, 2017, changes to the aged care assets test will see more than 100,000 Australians lose their part pension payments in entirety. More than 300,000 will have their pension payments cut.
Who among us could lose 20 per cent of our household incomes and come away unscathed?
It gets worse. With the loss of the pension, the government will also cancel retirees’ pensioner concession cards which allow them to enjoy discounts on council rates, car rego, energy bills and public transport tickets. Back of the envelope, that’s three grand per annum retirees will have to find.
Those in the gun on New Year’s Day 2017 are fretting. They have worked and paid their taxes all their lives. They are in their 70s and 80s. They have no other income or indeed any prospect of it other than their investment returns. This group of nearly half a million Australians are facing grave financial uncertainty with its contingent anxieties and worry.
Under the new arbitrarily determined figures, the government will start reducing pensions for retirees with assets, excluding the family home above $250,000 for a single homeowner (up from $209,000); $375,000 for a homeowner couple (up from $296,500); $450,000 for a single non-homeowner (up from $360,500) and $575,000 for a non-homeowner couple (up from $448,000).
The cut off for any pension payment is now $542,500 for a single homeowner (down from $793,750); $816,000 for a homeowner couple (down from $1,178,500); $742,500 for a single non-home owner (down from $945,250) and $1,016,000 for a non-homeowner couple (down from ($1,178,500).
Have a look at what Property Club Millionaires members are getting up to – a very different and successful retirement!