We are a diverse lot in Australia and there will be lots of opinions about what the Treasurer should include in the Federal budget. While we don’t have any inside knowledge we do hear from a lot of our customers and colleagues in the industry.
So what are some of the things people would like to see?
Retirement Incomes
We have written a few blogs recently highlighting aspects of the Retirement Income Review (RIR). Some of the commentary we have been hearing has called for:
- Increases to the Commonwealth Rent Assistance. Seniors that are forced into the rental market are far more likely to live in poverty than other Seniors
- Decreases to deeming rates. These continue to be out of sync with the actual rates Seniors are receiving and this impacts the entitlements of many people.
- Reforms to the Pension Loan Scheme (PLS). The PLS enables people above Age Pension age to take advantage of the equity in their home to generate additional income. The scheme isn’t well promoted and not many people realise that you don’t need to be on the Age Pension to take advantage of it. The interest rate on the scheme, currently 4.5%, is also quite high and off putting in the current low interest rate environment. The Treasurer may look at this.
Pension Increases
Typically Age Pension rates are updated in March and September each year while the thresholds are updated at the start of July. We aren’t anticipating anything that will change the existing schedule or lead to significant increases in the short to medium term but it would be great to see something in the budget.
Aged Care Reforms
The impact of Covid on Seniors and the recent Royal Commission into the Aged Care sector have shone the spotlight on the need for far more attention and support for this sector. We wouldn’t be at all surprised to see more spending in this area.
Home Care is one area that could be strengthened and National Seniors Australia in their budget submission called for three initiatives in this area. These were:
- Increase the number of home care packages available;
- Increase the maximum level of funding for home care so it equals what is available in residential care, and;
- Develop a traineeship program to increase the number of workers in the sector
This is just a sample of the issues being raised and there might be a number of other things you would like to see addressed. We would love to hear your views. Please leave your comments below.
We own our unit, however with Body Corporate fees, Council Rates, Home Insurance our pensions are quickly used. Friends who live in rental properties receiving the same pension as us have non of these expenses. They do need to pay rent, however after receiving Rental Assistance, there cost of living can be much less than ours. We do receive a small discount for rates about $200.00,pa.
Is it unreasonable that we not receive something equally as rent assistance
I live in my own home with my partner and rates, both council and water, and home insurance and contents costs us $120 per week. We own some rental properties and a tiny 1 bedroom is $300 per week and a 2 bedroom is $375-450 per week.
Currently maximum rent assistance for a couple with no children is $88 per fortnight.
I find it hard to believe that a renter is better off than you.
It is always easy to think that the grass on the other side is greener. Perhaps you should go back and actually ask your friends how much they pay after rent assistance and then tot up your expenses.
I am not an advocate of selling your home and renting but if you are prepared to forgo the increased value in your home consider buying into an over 55 village or aged care facility.
I have two friends who are in this situation and they pay a bit over $120 per week plus electricity. One gets rent assistance and the others do not.
Regarding you question of whether is is unreasonable that you should get something equal to rent assistance, there are 3.9 million retirees in Australia and almost 80% own their own homes if all of them got $44 per week or $88 per fortnight it would cost $4.7576 billion per annum. What do you think?
With the current amount of pension for retirees, it appears that it is a better proposition to sell your unit and just rent. This will allow you access to your money locked in your unit, enjoy the remaining years of your life with the extra funds and be rid of the expenses that come with owning a house. Just a thought.
I am a married self funded home owning retiree due to having paid my SSS super payments for over 34 years.
I had to put this money away out of my pay each and every fortnight.
I did not have the option of spending it on other things each and every fortnight.
Thee super payments continued to increase exponentially year after year, particularly in the later years prior to retiring.
My point is that we had to go without so much to enable us to keep up the payments in the latter years of my super prior to it eventually maturing.
I get a super pension based on my final wage at retirement and it is paid paid fortnightly.
This super pension is supposedly adjusted annually for inflation.
Apparently there was no inflation last year, what a joke, take a look at health care costs, and all other forms of insurances, utilities eg. gas water, electricity, postage, bank fees, fuel costs, car servicing, vehicle registrations, beer and wine etc, etc….the list is endless.
I don’t get anything from the government except a seniors opal card and a recently acquired Com. Seniors Health Card.
My GRIPE is that while pensions and the associated benefits to aged pensioners continue to increase year after year as opposed to self funded retirees getting virtually nothing from the government has me wondering as to why I put away super payments for 34 years as the aged pensioners are very quickly catching up to me with the added benefits year after year as compared to my super pension not having increased last year at all as there was supposedly NO inflation and or rise in the CPI.
I think its about time that self funded retirees of pension age were recognised for their contribution of them not burdening the government.
I feel that it would only be fair to be given at least some of the perks that aged pensioners receive eg. free drivers license, free car rego, aged pension Council rates, one off payments etc.
The reality is that essentially I would be better of selling and re distributing most of my assets to my kids including the value of my family home then renting a home for the rest of my life to gain the maximum pension and all the benefits that come with the aged pension increasing year after year.
Nothing has been mentioned about super particularly SMSF where investment is in term deposit with minor returns. What about the any changes to the minimum withdrawal limit ? Will it be reduced or are we going to be forced to drain up the capital ?
Need more packages, and not just to get them.
Need more funding in Aged Care homes – urgent for quality care of our elderly.
When pensions increased, don’t increase the amount of fees for people in Nursing homes, negating this increase.
Allow persons above the pension age, and not entitled to the pension, to access the benefits of the pension, this is not the money, but the benefits
The Pension Loan Scheme can be very useful but people should be aware that repayments (if you wish to pay regular amounts to keep the interest bill down for example) are very difficult to make. They must be made either by Money Order or Bank Cheque and delivered by mail or at a Centrelink Service Centre.
You can stop the loan at anytime by notifying them in writing – I did this and it took two and a half months for action to be taken.
I owned my apartment and receiving a part PCC pension. Prior to death of my partner, we were able to manage on our part pension. Since his death, I find it more and or difficult to manage for I still have to pay the bills and the Body Cooperate Fees. I apply for a Veteran Card was rejected and the single part pension makes it very difficult to survive.
I am a pensioner and live with my husband in our own home. Over the last 5 years the cost of running a home have risin. Also the maintainance on a home is never ending. Our home is only 7 years old but does need constanct attention to keep it in good condition. We do have savings in our bank a minimal amount in case of emergencies but it is difficult on two pensions to save money. Then when we can there is no incentive for us in term deposits or savings account. Young depositiors are able to access more interest when saving for a house why aren’t pensioners able to access better interest rates. We do not have any superannuation or shares to fall back on.
My question relates to taking a redundancy pay out and how long do I need to wait before I can apply for the Age Pension. I am 71 years and due to abolishment of my substantive position with NSW Government how long do I have to wait to apply for the pension if I no longer will be in the work force? I’ve only been with the Government for 6 years so it won’t be a huge amount of money.
Hi Naomi. You don’t need to wait to apply but the amount of your redundancy payment will be treated as an asset so it could affect your entitlements.
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