What made you return to the UK?

[fizzybangs]

The information about super/pensions in Oz is not correct and I would advise anyone to get the correct advice. to start with your own home is not counted as an asset as far as CentreLink is concerned - you can own a million dollar home and it will not be counted and will not affect your pension entitlements. If, once retired, you were silly enough to just put your money into a bank and sit on it then yes, you would probably have too much in assets to qualify for a pension but that is not the normal route that people take. CentreLink has plenty of information on line about retirement so would suggest that anyone who is interested do their own research. I believe it is normally suggested that you need $500K in super for retirement at today's cost of living. Fees in super are variable and you can easily change companies if you are not happy with the fees you are being charged. It is up to the individual to ensure your own super is invested the way you wish to be. There are many options (eg I have some in cash and some in balanced (shares) at present and I can change where my money is invested within the superannuation company. I check to see how much money I am making at least once a month.

[Guest guest74886]

The information about super/pensions in Oz is not correct and I would advise anyone to get the correct advice. to start with your own home is not counted as an asset as far as CentreLink is concerned - you can own a million dollar home and it will not be counted and will not affect your pension entitlements. If, once retired, you were silly enough to just put your money into a bank and sit on it then yes, you would probably have too much in assets to qualify for a pension but that is not the normal route that people take. CentreLink has plenty of information on line about retirement so would suggest that anyone who is interested do their own research. I believe it is normally suggested that you need $500K in super for retirement at today's cost of living. Fees in super are variable and you can easily change companies if you are not happy with the fees you are being charged. It is up to the individual to ensure your own super is invested the way you wish to be. There are many options (eg I have some in cash and some in balanced (shares) at present and I can change where my money is invested within the superannuation company. I check to see how much money I am making at least once a month.

 

I can see what you are driving at, but you have to agree that for the majority the 9% super does not ensure that you will have enough to live on for a possible 20 year retirement and that however you structure it there will be fees with a most of the providers and it is important to factor these into your decision making when considering the different funds as the difference a 0.5% compounded makes over a period of 40 years is significant.

Also the government must eventually follow the Uk and make it binding that you purchase an Annuity at retirement and choke off the avenue of withdrawing your fund and redistributing it into other revenue producing assets or simply spending it on non assessable assets.

When I mentioned the house as an asset what I was referring to in the main was that selling it as a means of equity release means that you have more liquid assets which I assume are then considered in the means assessment carried out by Centerlink.

I do agree that expert advice or knowledge is essential, but I do feel that for a substantial number Super is seen as a magic wand to having a rosy retirement when that may not be the case for those on even average salaries and that investment in a big property for sale as part of your retirement plan might need to be considered carefully with advice.

Also there is a International report about pension provision which makes the critique of Australian pension funds in comparison with other countries pension provision that they are too dependent on the stock market for growth with too little held in defensive positions such as govt bonds and long term bank deposits making pension funds here look much more attractive in terms of returns in the good times but much riskier at times of turmoil on the markets as has recently happened.

[fizzybangs]

Agree with you Oz to France and we are in exactly the same position as you are - as are many baby boomers unfortunately and women are often the worst off regarding superannuation and their prospects of a decent retirement income. That aside, I am with SunSuper and I can place my money wherever I want. I could choose the simple option by choosing Safe, Balanced or Growth but when I saw the balance of my account dropping because of the shares I immediately took action. I placed it all in cash and did very well out of it. Now I have some in balanced but the majority in cash and am very happy with the outcome on our rather minimal amount. I earned a couple of hundred dollars last week - cannot be bad! Someone on here asking a question about super was young and we have heard that the compulsory super contributions will be increasing from the present 9% so the projected growth for young people could be quite different. Also younger people will go through another boom time and no doubt another crash if history repeats itself as normal and it is up to them to learn about how to keep any eye on their super. My fees for management last year were $50 and considering I did some swopping around it is very good and I have no complaints. I have never looked at government bonds but they are probably an option in my super fund just as they are in some others and people have already been advised across the media that if they find they cannot invest their own money where they want within their super fund, then change funds.

CentreLink does take into account your super when it is time to roll it over just as they do compensation payments and if you spend it frivolously you may find you have to wait for your age pension (this is the case with compensation). They require you to roll it over into an income stream. However, I have heard that paying off the mortgage and certain other things are acceptable. And yes, if you do nothing with it, it will become an asset and you may get no pension at all. The plan for the future is that everyone will be self funded via superannuation and pensions will only be available to those that unfortunately desperately need financial assistance. I recall the then federal social security minister telling me back in late 1980's that the government believed that by 2025 they wouldn't be able to afford to pay everyone pensions - thus compulsory superannuation was set up. It's a good scheme and something had to be done.