topic Re: Pension changes proposed. in Community Spirit

Pension changes proposed.

kengillard — Fri, 22 Nov 2013 00:04:07 GMT

The Productivity Commission has suggested that the pension age be lifted to 70.

Also that those pensioners who own their own home have an "equity release" applied (basically a reverse mortgage) and paid to the govt. Hope it doesn't happen!!

Re: Pension changes proposed.

kengillard — Fri, 22 Nov 2013 00:07:17 GMT

http://www.news.com.au/national/breaking-news/push-to-lift-pension-age-tap-home-equity/story-e6frfku9-1226765701425?utm_source=News&utm_medium=email&utm_campaign=editorial&net_sub_uid=5088496

Re: Pension changes proposed.

*crikey*mate* — Fri, 22 Nov 2013 00:54:34 GMT

the equity release will never fly.

Re: Pension changes proposed.

icyfroth — Fri, 22 Nov 2013 01:04:15 GMT

@my*mum wrote:
the equity release will never fly.

I wouldn't surprised if it did.

Re: Pension changes proposed.

*crikey*mate* — Fri, 22 Nov 2013 01:33:50 GMT

At first I thought it could and that it would be good, to be honest. But how could they apply it with equality?

What happens to the asset rich/cash flow poor? How do the extract the money? A reverse morgage? applied retrospectively?

The incentive for anyone to own their own home would be obliterated. They would create a national housing shortage.

I haven't researched this and would love to discuss it and learn more, but off the top of my head and on the fly, it would nearly breach Discrimination Laws, wouldn't it? They would have to increase the medicare levy paid by tax payers to an equitable amount (but how according to the statistics proposed in that article?) and then also apply it to all of the other pension and welfare types. Otherwise it simply would not be just law.

Re: Pension changes proposed.

*crikey*mate* — Fri, 22 Nov 2013 01:35:56 GMT

and surely the High Court would challenge it on a constitutional basis!

plus considering the retirement age, income and retirement plans of judges, I reckon they'd be fighting the hardest LOL

Re: Pension changes proposed.

the_great_she_elephant — Fri, 22 Nov 2013 02:05:12 GMT

So would the government also have to legislate to prevent people approaching pensionable age from taking out a reverse mortgage themselves and blowing it all on a new car, a kitchen makeover and a trip round the world before they retire - after all, you can't take out a reverse mortgage on a house that is already mortgaged to the hilt.

Re: Pension changes proposed.

polocross58 — Fri, 22 Nov 2013 03:36:54 GMT

I thought government had scraped the bottom of the barrel when Gillard and Swan took a grab at all bank accounts which hadn't been activated for three years, despite that many of those accounts were of the trust variety which didn't need to be activated. Swan said he hoped to grab $109 million from that little exercise, which goes to show how desperate they were after their years of corruption and waste

No, Aussie government. Those of pension age have paid you for over 50 years. You've robbed them blind, taking a third of their earnings all the way through. And for what -- so you can give billions to overseas governments for sweet all? So you can hand Afghanis and Lebanese muslims close to $10,000 apiece plus free dental, plus free medical, plus free ciggies and grog and golf, etc. etc. ?

So you can give middle easterners free housing for their four wives and four separate lots of kids? So you can give them free money to live on for life because they no speaka our language, have no marketable skills, no training and no interest in working and paying tax to this Land of Plenty ?

You want people from whom you've already grabbed one third of their lifetime's earnings to give you MORE ?

Don't think so. Try the Swiss model instead -- yes, try that. The Swiss are on the verge of giving everyone $700 per week whether or not they work. Try that and you might win a few votes

and why not try the Swiss model ? Better than watching you grab one third of poor people's wages for life so you can waste it on people like Rudd and Carr and their first-class jaunts to wherever. Better than paying a ransom to a clutch of ex Prime Ministers every week when in reality, they should be giving the Aussie people a refund. Then eliminate automatic pensions for any goon who's spent a few years in what we laughingly call Aussie politics when they look as if they belong in the back row of a country school's P & C meeting. Useless bludgers who contribute zip and soak us for millions, year in and out

You want what from me? You want to steal my children's inheritance now? After stealing a massive portion of my income all my life? For what -- so you can provide Disneyland for more illegal bludgers? So you can waste billions on demountables for the offspring of foreigners who lie their way here?

Nope. You will not steal my children's inheritance. We will move. Now pull your neck in and stop giving Aussies' money to foreigners and start looking after those who pay the bills in this country -- the same few still employed and paying the wages, the over-generous wages, of the public servants posing as politicians

Re: Pension changes proposed.

lyndal1838 — Fri, 22 Nov 2013 04:32:23 GMT

@my*mum wrote:

What happens to the asset rich/cash flow poor? How do the extract the money? A reverse morgage? applied retrospectively?

The incentive for anyone to own their own home would be obliterated. They would create a national housing shortage.

The proposal I saw was that when anyone received government benefits they woud be required to sign over half the capital gains on their home....to be paid to the government when the house was sold.

What I would like to know is why should the government get anything if a house is sold to pay nursing home fees for the owner. It could take thousands of dollars of the owners capital and make it that they may have difficulty paying their fees.

Looks like Death Duties by stealth to me.

Re: Pension changes proposed.

cherry*135 — Fri, 22 Nov 2013 05:09:25 GMT

Here are the correct details re proposed tapping into a pensioners home value from the Productivity Commission.

The report also proposes tapping into pensioners' greatest asset - the family home - by making them hand the government half the yearly increase in their home's value.

A pensioner with a home worth $500,000, for example, could expect to see its value rise by $10,000 a year.

Once a pensioner needed assistance at home - or if their partner had to enter an aged care home - then half that capital gain, or $5000 a year, would be earmarked for the government.

The money would be paid to the government once the house was sold.

http://www.news.com.au/money/superannuation/plan-to-raise-retirement-age-to-70/story-e6frfmdi-1226765584588

Re: Pension changes proposed.

cherry*135 — Fri, 22 Nov 2013 05:17:35 GMT

The person who owned the unused bank account or their relatives (if that person was deceased) could still apply to get the money back.

There was a story in the news about a man who died, had worked hard all his life, but at the same time managed to accrue $2m in his savings (good investments?) His children didn't know he had that much money. They found out about it somehow after he died and it had been placed into the Govt accoun due to the inactive bank account rulet and they had to apply to get it back . It is a long process getting it back by the sounds of it.

Re: Pension changes proposed.

*crikey*mate* — Fri, 22 Nov 2013 05:51:43 GMT

I wonder how they decide what the home's value is. After all it is only worth what someone is prepared to pay for it at a particular point in time.

If the person dies during a real estate slump and their house is sold then, the fees could eat up any equity.

Will the sale be forced? Can those to whom the title passes choose at which point in time the house can be sold in order to take advantage of positive economic climate?

The governments keep hanging the goal posts and making us promises they never intend to keep, and that annoys me.

Free education

Free health care

Medicare

NDIS

Pensions.

The list goes on.

Re: Pension changes proposed.

bella_again — Fri, 22 Nov 2013 07:05:47 GMT

Yes and they wouldn't have this problem if they didn't keep trying to please the rich by having huge tax breaks for business that are making multi million dollar profits etc etc. Crazy, again another bunch of idiots that aren't in touch with reality trying to make the poor pay. Why do they always target the poor or those on low incomes? They are happy enough to give themselves pay rises and waste hundreds of thousands of dollars on endless enquiries that achieve nothing...sigh*

It won't work it won't even become policy, cant see it happening. What they need to do is target our youth. Youth unemployment is at record highs and these young people have the potential to bring in much more revenue than the oldies. Policies need to be encouraging the young to work; after all they are our future and they should be given every opportunity to expand their skills/ knowledge so that they can input into the future of this country.

Re: Pension changes proposed.

debra9275 — Fri, 22 Nov 2013 07:18:31 GMT

It's all very well saying increase the retirement age to 70 & that may work out OK for those who own their own businesses, like my father who is 85 & still working, but I can tell you, employers will not hire people 55 & over ATM. Yes, even in these days of so called anti discrimination laws, over qualified and over experienced are the reasons being given.

As for the govt. wanting to take a slice of people's family homes, I hope that never happens

I have a better idea, get rid of that huge baby bonus

Re: Pension changes proposed.

cherry*135 — Fri, 22 Nov 2013 07:25:53 GMT

If people stay working till they are 70, that means less jobs for younger people.

my*m - I would assume if someone owned a house for 20 years and then needed to go into aged care, the govt take would only start applyiing from the year they went into care and from then on. (for those people receiving age pension)

That plan most will likely never see then light of day. Who would work out the market value of the hosue from year to year, a valuer,, would the Govt pay for that to be done?

Re: Pension changes proposed.

red_wolfey — Fri, 22 Nov 2013 08:28:07 GMT

I will type this in capitals........PEOPLE OVER 50 CANNOT FIND JOBS AND THE ONLY JOB AGANCIES THAT WERE CATERING FOR OVER 50'S HAD THEIR FUNDING REMOVED.........

I imagine we will be seeing quite a few people dying infront of us at work.

Re: Pension changes proposed.

rabbitearbandicoot — Fri, 22 Nov 2013 08:45:06 GMT

@am*3 wrote:
Here are the correct details re proposed tapping into a pensioners home value from the Productivity Commission.

The report also proposes tapping into pensioners' greatest asset - the family home - by making them hand the government half the yearly increase in their home's value.

A pensioner with a home worth $500,000, for example, could expect to see its value rise by $10,000 a year.

Once a pensioner needed assistance at home - or if their partner had to enter an aged care home - then half that capital gain, or $5000 a year, would be earmarked for the government.

The money would be paid to the government once the house was sold.

http://www.news.com.au/money/superannuation/plan-to-raise-retirement-age-to-70/story-e6frfmdi-1226765584588

so, what would they do in the years that the value DECREASES - give you a refund???

Re: Pension changes proposed.

lionrose.7 — Fri, 22 Nov 2013 08:50:45 GMT

Ok so people have to work till they are 70.

Solo mothers on benefits have to work also.

So where are all the jobs going to come from?????

Re: Pension changes proposed.

red_wolfey — Fri, 22 Nov 2013 08:57:44 GMT

Take your house a bit at a time.....

Classy...

Re: Pension changes proposed.

acacia_pycnantha — Fri, 22 Nov 2013 09:24:27 GMT

A Productivity Commission report has suggested lifting the pension age from 65 to 70 to help Australia cope with an ageing population.

But Treasurer Joe Hockey was quick to deny the government was considering the move.

"We have no plans to change the age," a spokeswoman for the treasurer told AAP.

Commission chairman Peter Harris says population growth and ageing will affect labour supply, economic output, infrastructure requirements and governments' budgets.

"The best time to develop policies that address the inescapable implications of demographic change is while the transition is in its infancy," he said in the report released on Friday.

http://www.news.com.au/national/breaking-news/push-to-lift-pension-age-tap-home-equity/story-e6frfku9-1226765701425?utm_source=News&utm_medium=email&utm_campaign=editorial&net_sub_uid=5088496

............................................................

"No plans, eh?

"Inescapable implications of demographic change", eh?

Be afraid. Be very afraid.