Superannuation Discussion + market volatility

[QF WP]

With the reduction in retiree asset values along with the ability to take up to 50% reduction in pension income, some retirees are now able to claim more Centrelink and their retirement funds are doing less of the heavy lifting. Centrelink income may be capped, but there isn't an asset backing it to worry about. More of my clients are updating their asset values with Centrelink more often now, to achieve the higher payout under Age Pension.

 

[CaptJCool]

With the reduction in retiree asset values along with the ability to take up to 50% reduction in pension income, some retirees are now able to claim more Centrelink and their retirement funds are doing less of the heavy lifting. Centrelink income may be capped, but there isn't an asset backing it to worry about. More of my clients are updating their asset values with Centrelink more often now, to achieve the higher payout under Age Pension.

I did expect this was likely, and possibly pour in considerable extra numbers, at least temporarily.....June DSS figures won’t be out for awhile although the bump-up in Age pension payments will be noticeable in govt expenditure Budget projections sooner

Presumably, as values go down and up and down and up, one might qualify for say 3 months and then re-qualify later for a further period.

I did note too Real estate income - Services Australia of which I wasnt aware where “rent, lodger income” can be offset against your mortgage interest.

Found out about it when helping a friend with the myriad of categories necessary to obtain a centrelink Payment as he took on a lodger earlier this year to help with cashflow..

Negative gearing alive and well ....
Potentially this affects age pension eligibility and enables one to qualify where a mortgage is in existence.

I’m assuming the 50% reduction is due to the temporary move of account-based pensions drawdown from 4% to 2% where the underlying assets have suffered a drop in value ?

 

[CaptJCool]

With the reduction in retiree asset values along with the ability to take up to 50% reduction in pension income, some retirees are now able to claim more Centrelink and their retirement funds are doing less of the heavy lifting. Centrelink income may be capped, but there isn't an asset backing it to worry about. More of my clients are updating their asset values with Centrelink more often now, to achieve the higher payout under Age Pension.

June figures are now in. They aren’t an overwhelming increase ....

 

[QF WP]

That appears a pretty normal increase in numbers accessing Centrelink Age Pension - we have an aging population, but also increasing mortality (COVID-19 has probably shown an uptick in normal numbers).

Interesting decrease in Italian and Greek numbers - they've gone back during COVID-19 perhaps...or been a higher % of poulation who have sucummed to COVID-19?

 

[andye]

Interesting decrease in Italian and Greek numbers - they've gone back during COVID-19 perhaps...or been a higher % of poulation who have sucummed to COVID-19?

I suspect its a function of the wave of original migration. Unlike the Brits and NZ, their big migration was over a relatively short period, slowing down in the 1970s. I doubt there have been enough Covid-related deaths to affect the numbers

 

[CaptJCool]

I suspect its a function of the wave of original migration. Unlike the Brits and NZ, their big migration was over a relatively short period, slowing down in the 1970s. I doubt there have been enough Covid-related deaths to affect the numbers

I’ll look through the prior period figures

They are definitely aging cohorts

Also the ABS allows you to search by country of birth so you see the high % of over 65s in the particular groups, plus of course you can track the large volumes of arrivals by age (so to speak) and see the citizenship rates of each grouping too

 

[CaptJCool]

That appears a pretty normal increase in numbers accessing Centrelink Age Pension - we have an aging population, but also increasing mortality (COVID-19 has probably shown an uptick in normal numbers).

Interesting decrease in Italian and Greek numbers - they've gone back during COVID-19 perhaps...or been a higher % of poulation who have sucummed to COVID-19?

In Dec 2016, the first period in which Country of Birth was available

Italy 103,595
Greece 72,494

Dec 2019
Italy 90,394
Greece 67,341

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