Do you, too, find the Work Bonus credit as clear as mud? We suspect this may be the case because of the volume of questions we receive on this top. It seems that many Retirement Essentials’ members are simply bamboozled by what should be a straightforward calculation.
The following explainer of the Work Bonus is possible because our Head of Customer Services, Steven Sadler, has taken the time to step us patiently through the rules. Again! Someone send this man some chocolates now!
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.
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.