Pension changes proposed.

[kengillard]

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!!

[cherry*135]

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.

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.

[*crikey*mate*]

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.

[bella_again]

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.

[debra9275]

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

[cherry*135]

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?

[red_wolfey]

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.

[rabbitearbandicoot]

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@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-122676...

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

[lionrose.7]

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?????

[red_wolfey]

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

Classy...

[acacia_pycnantha]

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-e6frfku...

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

"No plans, eh?

"Inescapable implications of demographic change", eh?

Be afraid. Be very afraid.