This week one of our team, Mikahil Walden, pointed out an anomaly in the Age Pension thresholds that really disadvantages one group of people. And in the midst of a national housing crisis it’s renters that are missing out.
James Coyle
James has over 35 years experience in financial services with particular expertise in two of the key components of retirement finance - Superannuation and the Age Pension. He is passionate about providing the guidance and support that can help older Australians enjoy their best possible retirement.
He lives in regional Victoria surrounded by dogs and chooks.
Most grandparents help financially: Here are seven things they need to know
The American Association of Retired Persons – or AARP as it is now called – has been around since 1958 and has 38 million members. Late last year they asked their membership about being a grandparent and how this affects their own finances. The results were telling:
94% helped grandchildren with ‘some sort of monetary support’
But 79% didn’t describe themselves as doing so (i.e. being a financial supporter)
This support was used for grandchildren’s education (53%), living expenses (37%), and medical bills (about 25%). The propensity of grandparents to share their wealth is also alive and well in Australia.
Such support for grandchildren is not just financial. Recent reports (Australian Institute of Health and Welfare) on childminding suggests that two in five grandparents provide childcare support for children under 13 years of age, and an impressive 63% provide care if the grandchild is 10 or younger. This can often enable parents to work longer hours so it translates back into very real financial support as well.
These are high percentages by anyone’s account and they raise the question whether this generosity is in any way cramping the retirement possibilities for grandparents. Or if it’s possible to have it both ways and enjoy a comfortable retirement while still giving to those adorable grandkids. Here are seven things you might like to think about first, before putting your hand in your pocket.
What makes a marriage or partnership and why should Centrelink care?
The current housing crisis can be seen in many ways. The most obvious is the reduced ability for younger Australians to get a foot in the property market. But there are other ways it hurts as well. One is the growing trend for couples who separate to stay together, at least physically, as it is too hard or too expensive to go out on their own to rent or buy.
Obviously it’s far from ideal if you decide you don’t wish to be together any longer and financial circumstances force you to stay in the same dwelling and to report on this situation to a third party, i.e. Centrelink. This situation comes up quite a lot in our consultations with people who are trying to navigate the Centrelink maze.
But it’s also relevant to those who are new to a relationship – at what point does a first date become a ‘relationship’? And we’ve had questions on how Centrelink views same sex marriage, a brother and sister who share, and a mother and daughter who also share. So read on for a summary of the main rules and how we’ve solved some of the Retirement Essentials members’ questions.