Superannuation Discussion + market volatility

[JohnM]

I am another with an allergic reaction to whY

I thought most people on this forum shared the same allergy... .

 

[cove]

Mrscove and her children all have it too. I just go with the flow.....the champagne bubbles that is.

 

[JohnK]

I think its just that maybe it isnt a good thing to state that your parents retired, fully supported by Centrelink, at a very early age, and have enjoyed multiple trips to Greece and had virtually no savings. Can you not see that as a red rag to a bull?

Did I say fully supported? They have savings. The savings are irrelevant. They worked hard and saved and helped 2 children along the way. Red rag to a bull? Sorry don't see it. Mum and dad couldn't work anymore so they retired. Centrelink advised and approved for my parents to be paid unemployment and then sickness benefit while they heard the case for disability which was eventually granted.

But instead of seeing this as a story of someone being able to survive on welfare payments it becomes an attack on ethics. The nastiness in some people shines through. Very sad.

 

[Denali]

I thought most people on this forum shared the same allergy... .

This would resemble my husband, if he was to get a whY BP... I blame AFFer.

 

[PLANT]

Any else n being charged a REGULATORY EXPENSE RECOVERY FEE?
Not me but family members. :/

 

[cove]

Taxpayers do get miffed when they see people receiving benefits they should not be receiving. Somehow we have about 800,000 to 900,000 claiming the disability benefits because it gives them more cash. Currently the Government stops that benefit when that recipient goes overseas for a stretch of time. Most will not get that benefit again when they return to Australia as the medical rules on disability have changed.
There just are not enough taxpayers to cover everything people want.
We have no intention of going on a Government pension as we plan to provide for ourselves.
I expect that by 2040 the Government pension will become a loan payable out of the estate of the recipient as the Government deficits stay out of control.

 

[Pushka]

Did I say fully supported? They have savings. The savings are irrelevant. They worked hard and saved and helped 2 children along the way. Red rag to a bull? Sorry don't see it. Mum and dad couldn't work anymore so they retired. Centrelink advised and approved for my parents to be paid unemployment and then sickness benefit while they heard the case for disability which was eventually granted.

But instead of seeing this as a story of someone being able to survive on welfare payments it becomes an attack on ethics. The nastiness in some people shines through. Very sad.

Yes you said they lived on unemployment, sickness and aged pension and no superannuation.

Maybe you see me as being nasty but I have likewise always worked and continue to work past the age of 60 and will need to work for a few years yet and while I go on nice holidays I also pay a lot of tax, raised two kids, and will never see a drop of pension. Just a realist comment. I don't see Centrelink benefits as the automatic reward for paying taxes. And no one under the age of 60 should have those thoughts either.

 

[QF WP]

Any else n being charged a REGULATORY EXPENSE RECOVERY FEE?
Not me but family members. :/

This page here gives some idea from the Government perspective, but won't answer your question. Best to read the fine print in the statement and it should be referenced there. Alternatively, seek answers from their website or customer service...

Without knowing the full story, it could likely to be something related to the recent advent of MySuper (started being implemented in 2013, with full implementation finished on 30 April).

 

[QF WP]

It is all relative. My dad retired at 52 and mum was not yet 50. They have been living on unemployment, sickness benefits or pension for the past 27 years. They have had multiple trips to Greece and have enough to buy food for 4 people and still able to save.

Oh and no superannuation income. My dad had ~$12,000 in the 80's when he stopped working and moved it all into a CBA super account and lost ~$2,000 in first year. Must have been around the time property crashed. Never again.

A classic example of not giving all the relevant information on which people were making judgements - had you said "my dad had to retire at 52 due to ill health and applied for the Disability Support Pension", then there may have been less "negative" comments. Giving relevant information always saves heartache...

 

[andye]

My observation as a wife and my husband (56) is suddenly at home 24/7, he slept a lot for the first couple of months. Got to the point that I asked if he was feeling ok, was depressed, why is he having daily naps, nightly naps, falling asleep in the car, on the couch. I would come home and he tells me he slept most of the day.

For the first 2 weeks I also thought I was going to have to kill him as he was all in my business and stuffing up my morning home routine.

Its been about 4 months now and hes finally settling in a new routine and happy with its direction. Morning exercise (hes lost weight already), once a week meet up with Group A (work friends related), once a month meet up activity with Group B (hobby #1), couple of times per month for hobby #2 meetup (Group C) and hes building on this.

Worth considering sleep apnoea particularly if its got better after losing some weight

 

[lovetravellingoz]

My observation as a wife and my husband (56) is suddenly at home 24/7, he slept a lot for the first couple of months. Got to the point that I asked if he was feeling ok, was depressed, why is he having daily naps, nightly naps, falling asleep in the car, on the couch. I would come home and he tells me he slept most of the day.

For the first 2 weeks I also thought I was going to have to kill him as he was all in my business and stuffing up my morning home routine.

Its been about 4 months now and hes finally settling in a new routine and happy with its direction. Morning exercise (hes lost weight already), once a week meet up with Group A (work friends related), once a month meet up activity with Group B (hobby #1), couple of times per month for hobby #2 meetup (Group C) and hes building on this.

From what I can gather this is a fairly common problem with males in particular when they retire, and moreso for those whose "retirement" was not of their choosing or at least the timing of it.

 

[JohnK]

Yes you said they lived on unemployment, sickness and aged pension and no superannuation.

Maybe you see me as being nasty....

Not at all. My parents worked hard and paid their taxes and the jobs they were doing caused their disabilities. And another side effect of their hard work is both have very poor hearing as they were working in a printing factory for many years and there was no push for protection in those days.

I was quite friendly with another Sydneysider here in the office for the 4 years he worked here. The thing we talked about most is "How much is enough?". His wife was on one of those golden superannuations where you walk away with 80% (?) of final salary as a Headmistress and earning well over $100,000/year. He has been managing his own superannuation for a long time.

We've been torturing ourselves away from family but he finally left at beginning of last year and enjoying retirement. I'm not quite there. I was a few years ago but blew it and now trying to rectify. In my mind I have determined that $1,000/week in my hand is enough to have a comfortable life, send my daughter to private school, go to Thailand twice year as a family and let the wife/daughter go an extra time at Christmas and still save money.

That's the plan. Think I can achieve it.

A classic example of not giving all the relevant information on which people were making judgements - had you said "my dad had to retire at 52 due to ill health and applied for the Disability Support Pension", then there may have been less "negative" comments. Giving relevant information always saves heartache...

You're right again but no need for negatives.

 

[Pushka]

Ok JohnK. But your original post did rather come across as something perhaps you did not mean to say. I thought their issues were auto immune not work related. Did workcover/workers comp not assist them? - if work related they should have, esp the industrial deafness - employers pay enough in premiums. Negative? Maybe, just calling it as I read it.

 

[knasty]

Question for the brains trust. Work longer hours throughout your mid years and retire early, or shorter hours for longer? I used to think the former was better but now, having missed a lot of my childrens' youth and seeing a substantial proportion of any incremental salary disappear in tax, I'm thinking the latter may be a better plan.

 

[cove]

There is no correct answer knasty. I had a health issue in 1994 so I did have to slow down. The children grew up and we were both there for their education, sport and advancement. I try to work smarter (but that can be difficult).
I am still annoyed that the top personal tax rate is 49% but a couple can shelter $3.2 million in super and have a 15% tax rate on the excess.
Salary sacrificing early in your life is a pretty good idea as 9.5% compulsory super contributions won't get you enough for a comfortable retirement.

 

[kpc]

.
I am still annoyed that the top personal tax rate is 49% but a couple can shelter $3.2 million in super and have a 15% tax rate on the excess.
Salary sacrificing early in your life is a pretty good idea as 9.5% compulsory super contributions won't get you enough for a comfortable retirement.

Wise words from the master...I'm about to make a major top up to my Super

 

[Pushka]

So the reason for putting a lot of personal cash into super is the tax savings - at any stage do the contributions become tax free - ie no tax whatsoever? Any other quals? Age >65 or retired and over 60?

 

[cove]

Yes when you go "transition to retirement" the taxes cease unless you have way more than the $3.2 million a couple is allowed.
The tax rate on the larger balances will be 15% which is a bit better than 49% this year for the highest personal rate.

 

[Pushka]

Yes when you go "transition to retirement" the taxes cease unless you have way more than the $3.2 million a couple is allowed.
The tax rate on the larger balances will be 15% which is a bit better than 49% this year for the highest personal rate.

Thanks cove. So currently we are receiving the transition payments and both over 60 and still working. So any tax on the SG contributions? Won't ever reach the $3.2 million in super though.

 

[lovetravellingoz]

Question for the brains trust. Work longer hours throughout your mid years and retire early, or shorter hours for longer? I used to think the former was better but now, having missed a lot of my childrens' youth and seeing a substantial proportion of any incremental salary disappear in tax, I'm thinking the latter may be a better plan.

The best plan is the one that makes you happiest.


The main reason I gave up being a "Flight Warrior" 13 years ago was to be able to enjoy my family and friends more. I actually got more money as it turned out, but a lot less perks from travel to superboxes at the football/cricket etc
Rather than flying somewhere more weeks than not I could instead to commit to, and enjoy, things like taking my daughter to rowing training which after her first Australian Championships became a year long pursuit rather than seasonal. I also took up being a Scout Leader for 7 years to spend more time with my three daughters. etc etc

There is no way I could have done these things by staying a Flight Warrior.


Though yes I also did enjoy my time as a Flight Warrior. But it was the time to change.