Humble servant of the Nation

No point in saving for your retirement

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That great sector of the Australian community, retirees, is being set upon again by government. The issue has passed barely noticed in the media but the political consequences for the Turnbull Government are sure to be profound.

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.

There is a perception many retirees are rolling in money. They have assets many could only dream of. Perhaps that’s why the media has shunned the issue.

Let me ask the question, 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.

Full column here.

495 Comments

  • Dwight says:

    Obeid goes to jail. The system does work.

  • Henry Blofeld says:

    Eddie Obeid doing 5/3 years porridge Mr Insider what an undignified end to a life but well deserved of course as was determined by the Courts.

  • Rodent says:

    Brilliant reading today by Warren Mundine in the Telegraph title “Sense &Centre- Bility “on how Australia has derailed itself , hope Malcolm reads this . Warren a prominent former ALP president and on the Advisory Council of Indiginous leaders .
    Someone here said we should not read material from papers , maybe they can learn something from qualified academics like this bloke .
    BTW ,..just out now is Bill Shorten , Get Up, and trade unions supported this mad action from Turnbull on pensioners in their run on campaigning , so please no barking from Labor on this .

    • jack says:

      yes, the mundine article is very good, thanks for drawing attention to it.

      he does nail the real lesson from Trump’s win, a successful politician needs to identify the concerns of the majority of people, not those of the hand-wringers in the media, and he lays out some examples which are obvious to the majority.

  • Dismayed says:

    Oh and off topic I am sure we will see some here extolling the virtues of Renewable Energy due to Electricity prices in Sth. Aus. dropping to $11 per mwh yesterday afternoon. In fact this morning SA’s prices were about $20 per hour less than the rest of the country. Great news for the Seniors regarding power bills especially if they lose their concessions.

  • Dismayed says:

    In a recent report on the “age of Entitlement” results show that Seniors 55+ are paying less tax than those were 20 years ago and budget transfers to Seniors is worth $10k more per year to them. Seniors receive more as a share of the Budget welfare spend than families do. The Gillard Government tightened down and wound back benefits to families much more so than on Seniors, Seniors are accumulating wealth at a higher rate than those under 55. the report makes very interesting reading and again highlights the Baby boomer generations has had an armchair ride when compared with other generations of Australians.

    • plmo says:

      Dismayed

      It is almost enough to make one believe in miracles!!!

      See my response to darren above.

    • Carl on the Coast says:

      Dismayed – says: “… Baby boomer generations has had an armchair ride when compared with other generations of Australians.”

      The dubious so called “armchair ride” you refer to is otherwise correctly viewed as “progress”. It was only made possible through the hard working industrious folk of the post war period.

      Surely you’re not advocating a spot of ecclesiastical-type excommunication for those who made a quid for themselves and the country over the past 50 years or so mate?

      • Dismayed says:

        Carl for once go and have a look at the facts. For a start your generation were children post war. It was your parents who led the recovery after the main conflict. The BB generation worked no harder than any other. But if you look closely at reports recently the BB generation did not have it as hard as you all wish to moan about. In fact on many measures the BB generation had it better and have set up the system especially in the Howard years of largesse and pork barrelling to continue to favour yourselves while continuing to moan about everything and everyone who has come along after you.
        https://theconversation.com/why-every-generation-feels-entitled-70405

        • Penny says:

          I’d have to agree with you Dismayed about the Baby Boomer generation. We were fortunate to be growing up in an Australia that was “booming”. My parents were able to buy their own house through a war service loan and the other benefits that came with having fought and survived WW11, but that was it. No way could they have ended up as rich as the next generation, unless it was inherited wealth. I consider myself and most of my friends to be far more fortunate than previous generations.
          However that does not give this government, nor any future government the right to decide what we do with our savings.
          I’ve stated before we don’t expect a pension of any kind, but I am very tempted to take all our money out of superannuation and just spend it….or put in to a trust for my daughter and grandchildren. No way will future generations have the opportunities we have had and I shudder to think how they are ever going to buy their own properties.

          • Dismayed says:

            Thanks Penny. I would not be making rash decision if I were you. See your accountant I am sure you can “Trust ” the advice he will give you. We are seeing the results of the Howard/Costello years starting to play out now. This was one of their changes. Unfortunately the coalition of today are an over reactive command and control mob with an ideological streak not seen before in the country.

          • smoke says:

            zakly what old mate did Penny. withdrew the lot and slung half to his daughter for a modest share in her business.
            invested the remnant in his own name outside super.
            Best thing he’s done for years he says

        • Carl on the Coast says:

          Dismayed (9.17am)

          says: “But if you look closely at reports recently the BB generation did not have it as hard as you all wish to moan about. In fact on many measures the BB generation had it better…”

          You are presenting as a generation Jones or a latchkey kid Dismayed, or perhaps you were in that post grad cohort resting on your laurels while us BB’s were busting our balls.

          Tell me it isn’t so mate.

          • Carl on the Coast says:

            Dismayed (9.17am)

            says: “Carl for once go and have a look at the facts.”

            Okay, one of the facts I noted was that between 2004-2014 households aged between 65-74 increased their wealth by $400,000. While households aged between 45-54 in 2004 increased their wealth by $500,000 over the subsequent decade.

            I’ll take a guess and suggest you may be in the latter category Dismayed. If so what do these factoids demonstrate mate?

          • Dismayed says:

            Don’t defame me Carl. Let me get this straight, you have now changed your argument and are complaining because the over 65’s increased their share of the Nations total wealth from 25% to 30% and you are also complaining that 55-64 are Only 47% wealthier than those of the same age a decade earlier? It is clear all you want is maintain your place in the conservative outrage industry. You are whingeing because someone else worked hard and actually had the audacity to increase their wealth. You are not taking into account the extra transfers and tax concessions to the 55-74 age bracket. Basically you continue your dishonest whingeing & cherry picking. I see as usual because I have highlighted your failings you again attempt to attack me personally I have told you before I went to the school of Drawworks and Rigonomics. Self funded since 15 years of age.

  • Rodent says:

    Robin and Yvonne .
    Both you make valid points , where we goingnto park our votes , and Trump win , anything is possible.
    We once venerated our leaders , now, we indulge into vitriotic voices in these political times of leaders having no respect , and no dignity , especially on our older dears. This dislocation of the nation, shows times ahead look gloomy as the intemperate rants of leaders are displaying hollow excuses with pragmatic politics has gone forever with this Turnbull team. This must unload dissension of anger knowing these politicians creating a demoralising effects while they jet out overseas into northern hemisphere resorts at tax payers expense.

  • Rodent says:

    Milton 06:33pm.
    You are right on sending the wrong message .
    Turnbull was shakin up by Paul Keating saying he has “no political judgement”. Not only failing to collaborate with his party, but most times insidious lacking the pragmatic approach starting from his joint failure shutting down the ministers at election time to speak on their portfolios to boost the votes.His shutting down on chances of burying Labor over detention centres and the smuggling trade , seen the One Nation come forward to boost their careers .He never challenged Labors bad economic record , now he is attacking pensioners. Once you start on pensioners , you are then doomed as leader.Crueling the pensioners , will breed internal animosity while next Malcolm will turn this over to his ministers to take the heat like other times. This Turnbull period leaves him the” catalyst of economic failures “heading towards the Rudd/Gillard carnage delivering heavily on the pensioners to wear the blame.

  • Rodent says:

    Hard to imagine MalcolmTurnbull enters into a case of “contemptuous negativity” sending messages that pensioners are washed up not important after years paying taxes . It is too late on reinvigoration after already fracturing the party hearing calls for Tony to lead the troops back before One Nation builds thejr stocks up of voters.
    Still no assurances from the Shorten camp on solutions leaving One Nation the “new Donald Trump” politics emerging.This Turnbull direction of cruel outcomes, has inpiration of restless public building into major American style politics after Turnbull state of mind clearly states his misguided arrogance may now wake Fairfax illiterates that their choice of Malcolm over Abbott did not work.

  • Carl on the Coast says:

    Then again, upon reflection this pensioner concession card (PCC) holder caper is a tricky one to get one’s head around.

    There is undoubtedly a perceived incongruence in a taxpayer funded pensioner system where its possible for a PCC holder to be able to rock up in their current top out model mercedes AMG C63 S coupe for a visit to their PCC holder friend’s government assisted bedsitter for a cup of tea and saos, and bemoan the present price of a loaf of bread.

    • Yvonne says:

      Yes the whole thing is skewed. People sitting in multimillion dollar homes driving fancy cars and jetting here, there and everywhere should not be getting a single cent out of the govt. Bit of tricky accounting – and they do. And they’re proud of themselves

  • Jean Baptiste says:

    “Oh Lord wont you buy me a Mercedes Benz.”

    And heres me thinking welfare was for the poor. *
    Oh the humanity, the worlds biggest atmospheric polluters per capita, the top five percentile of the worlds richest, some of the fattest, most overindulged fortunately geographically born who don’t really give a fig whether their children or grandchildren will even live long enough to retire, are going to have to peg back their tastes, maybe forgo a golfing trip to Hawaii, or give up a car.

    “Worked hard all my life no help from my friends.”

    Yeah well, go and sit in the sun with Grandad, Grandma and your underweight kids breaking down boulders into road base with hammers all day for two bucks, or get behind a plough in the delta up to the knees in mud if you want to feel better about how hard you worked.

    And for the mildly intellectually challenged who cant quite grasp the concept of human extinction, it does by definition include our children and grandchildren. Not that that’s an issue for anyone retiring now, even that’s not certain, but keep on moaning.

    http://www.geoengineeringwatch.org/planetary-meltdown-from-formerly-frozen-methane-if-you-are-not-alarmed-you-should-be/

    “Hey Darls, solar panels or another trip on the Danube this year?”
    “Sweetie, you jest, it’s a no brainer, they’re quoting 40% off, ring that travel agent right now!”

    *And the big corporates of course.

    • Yvonne says:

      Thanks for the link on permafrost JB. Huge threat which seems often overlooked

    • Carl on the Coast says:

      JB (6.57am) – After attempting to digest the thrust of your rather colourful convoluted message (give or take a whiff of methane here and there) I do believe we may be on a unity ticket JB!

      If one is to accept various reports and reviews that emerge every now and then re the Department of Human Services expenditure, it does appear there are too many under-extended folk in our community who choose our generous welfare system as their only backstop and who prefer to have Centrelink as the centre of their world rather than to get out and strike a blow.

      I realise one needs to be aware of not overstating the extent of the inappropriate largesse being withdrawn from the taxpayer’s coffers in this regard.

      Just as one needs to be conscious of not over-egging the extent of the various alleged gaseous deposits in our atmosphere me old mate.

    • Robin says:

      “Oh Lord wont you buy me a Mercedes Benz.”
      Only if you are a masochist JB
      The cars are unreliable under engineered and when you inevitably break down a part that costs 10 cents to manufacture costs 1500-2000 dollars
      Same with Bloody Money Wasters (BMW)
      Australian cars of the 1960s were more reliable
      When German car makers started acquiring British car makes they got the bugs as well

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