How much do you need to retire in Australia in 2021?

[Parley]

Imagine if you died with an estate of £3M built over a lifetime and the government trousered £1M in tax from your estate.

I'm surprised some of these rich oligarchs want to live in London.

[Wanderer Returns]

54 minutes ago, Parley said:

doesn't sound like much of a reduction.

40% tax is a completre ripoff.

If memory serves me correctly it was off-shore in the Channel Islands in some kind of trust fund, out of the HMRC's reach. It was all over the news at the time. At 40% IHT his estate would've been up for the best part of a £1 million tax bill, but instead only around £50,000 was due. Even though there was nothing illegal it raised some serious ethical questions about the rich paying their taxes, which has continued with tech companies and the like.

What I was implying was that before they raised the inheritance tax threshold, many were proactively disposing of their assets to their children to reduce their exposure to inheritance tax. This had the knock-on effect that they had less money to pay for age care, should they need it, so the government were losing out. By raising the inheritance tax threshold people became less inclined to do this.

[Wanderer Returns]

39 minutes ago, Parley said:

Imagine if you died with an estate of £3M built over a lifetime and the government trousered £1M in tax from your estate.

I'm surprised some of these rich oligarchs want to live in London.

Let's just say that compared with a lot of countries around the world, the UK is a very safe place to keep your wealth. There are also very few restrictions on foreigners buying property in the UK, which may well account for this...

[Paul1Perth]

19 hours ago, newjez said:

I know several people who have had that vertigo type thing Paul. They can have it for quite some time. There are pills for it and they do work, so make sure you see the right doctor.

Incidentally, I spoke to my boss yesterday, and he had to take his wife to A&E but they refused to see him and said that wasn't his A&E and needed to go elsewhere. Never heard of that happening before. He lives in Kent, so maybe it's a Kent thing.

Yes, it's surprising how many people have had it when you ask around. The doctor said it's quite common.

The anti nausea tablets help no end. I can cope with the dizziness, even went to the gym yesterday on the bike. It's nice quite roads about 1km to the surf club. I have to make a right turn and when I looked over my shoulder to see if anything was behind, as soon as I turned forwards I was already heading left up the curb

Luckily there's a park on the left and not a massive curb and I was on the mountainbike so I just bounced up and avoided the wooden poles on to the grass.

Made the mistake of telling my wife. She says she's ready for going back to work for a rest.

There's loads about it online, including videos of exercises you can do to move the calcium deposits around in your inner ear. I think it's going off slowly and my wife is taking me to the pool later. Bit too far to risk the bike.

That's strange about the A&E, never heard of anyone being turned away before.

Edited September 29, 2021 by Paul1Perth

[Paul1Perth]

21 hours ago, Tulip1 said:

For many people there is no inheritance tax to pay.  It’s certainly not charged on everything someone has. The threshold starts at £325k so anyones estate that has less than that doesn’t incur any tax.  It gets better than that though as providing someone is leaving their home to their children or grandchildren they get an additional £175k allowance.  It’s called the residence nil rate band. This means that person can have a £500k estate that won’t incur any inheritance tax.  Anything above that will do.  So for many people there is no tax to pay and if there is it’s only on anything above £500k.  In the case of a married couple it’s double.  The one that dies first doesn’t have any tax payable on the assets they leave to their spouse.  Their inheritance tax allowances also pass to their spouse.  So when the second one dies they have their own £325k disregard as well as their late spouses £325k disregard.  They also have their £175k residence nil rate band and that of their late husbands.  So they have £1m of assets that aren’t subject to tax.  Again anything over that figure is.  Also the rules change a little for estates worth over £2m. 

So when people talk about inheritance tax they often think everyone pays it but actually it’s only those with sizeable assets that do and the amount that is disregarded is quite high.  Still perhaps unfair as you say. 

No need to worry about that then.

[rammygirl]

On 28/09/2021 at 02:53, Tulip1 said:

Yes that is the average I believe.  There was a few in my mums care home that has been there many years but equally some that only lasted a month or two so it evens out to that18 month average.  One of the ladies in my mums unit had been there four years, my mum only managed seven months. 

With new methods and encouraging residents to excercise, using gym and pool they are not only living longer in aged care but have a better quality of life too.  Unfortunately this is causing some issues, but a good problem to have in a way.  This is certainly the case in the better aged care facilities here.

In Florida we visited the Villages, such a huge complex it gets its own weather report! These are retirement homes with a mix of support available. They are very social with their own centres (which are open to anyone with shops, restaurants and cinemas), a bit Disney but hey! People there are active and get out and socialise even if they are confined to golf carts attached to oxygen.  So good they had to open a new clinic for sexually transmitted diseases on site! Not cheap but they also buy shares in the business and get profits.

I know I would rather be somewhere like that than where I saw my grandma waste away in a high back chair.

[Parley]

Retirement Villages are a very different thing to nursing homes which is what we were discussing.

Be careful about them as a lot of people get ripped off when trying to sell their unit in a retirement village.

Edited September 29, 2021 by Parley

[rammygirl]

26 minutes ago, Parley said:

Retirement Villages are a very different thing to nursing homes which is what we were discussing.

Be careful about them as a lot of people get ripped off when trying to sell their unit in a retirement village.

The first point was about a nursing home though. People are living longer because of more active care. A guy in his late 80s who has limited mobility is now doing 10 miles a day on an excercise bike plus other mobility exercises. Needless to say his heart and lungs are now performing much better and his prognosis means he will possibly live much longer in the nursing home.

Some retirement villages now also have a progression into partial and full nursing care on site, better as apart from moving units they don’t need to leave the social groups they have made.

[Tulip1]

21 hours ago, newjez said:

Those with sizable amounts can avoid it with trusts and such, and gifts are discounted over seven years. I think inheritance tax is only there for the upper middle class.

I would love to know how much the government actually gets and from whom.

It is a tax that is largely avoidable with the right planning.  There are many wealthy people who won’t pay a small fee to see a financial advisor to look at options to avoid it.  They then go on to die and their estate ends up paying hundreds of thousands to HMRC.  Some people have little sense and can’t be told.   

[Tulip1]

On 28/09/2021 at 01:16, Parley said:

By the way and as this thread is about Australia. There is an exemption where the other spouse wants to remain in the family home.

So in your case where you are quite a bit older, if you needed to go into care but your wife was quite able to look after herself remaining at home, I believe there is some exemption process and you are not forced to sell the family home in that case.

But the rules do change and have changed since my Mum went through it so it is worth doing some research but probably you can leave that until you are well over 70 as the rules will inevitably change.

It’s the same here.  The house is disregarded if your spouse/partner remains in it.  I’d think it would have to be if it’s jointly owned as to use it would be forcing the other party to pay for someone else's care which you couldn’t do.    

[Tulip1]

3 hours ago, Parley said:

Imagine if you died with an estate of £3M built over a lifetime and the government trousered £1M in tax from your estate.

I'm surprised some of these rich oligarchs want to live in London.

But that situation would be avoidable with good tax planning.  

[Tulip1]

1 hour ago, rammygirl said:

So good they had to open a new clinic for sexually transmitted diseases on site!

That is so funny (and shocking in equal measure)

[Parley]

15 minutes ago, Tulip1 said:

But that situation would be avoidable with good tax planning.  

I hope so.

[Paul1Perth]

4 hours ago, rammygirl said:

The first point was about a nursing home though. People are living longer because of more active care. A guy in his late 80s who has limited mobility is now doing 10 miles a day on an excercise bike plus other mobility exercises. Needless to say his heart and lungs are now performing much better and his prognosis means he will possibly live much longer in the nursing home.

Some retirement villages now also have a progression into partial and full nursing care on site, better as apart from moving units they don’t need to leave the social groups they have made.

It's got to be a better way to see out your time. 

Years ago me and the wife were having a walk, we'd not been in the area long and were still getting our bearings. Not far away is a St Ives retirement village and it had an open day. We had a wonder in just for a look.

You can move in there over 50 or maybe 55, it's laid out really nicely, detached units with gardens, car parking, some with caravan or boat parking, swimming pool in the middle, well fitted out gym, big social hall with nice bar, pool tables, dart board.

I said (jokingly) lets get our name down. If your an older couple, maybe no close family, still fit enough to socialise and nip off for a few weeks in the van, would be pretty good I reckon.

No idea of cost or if you ever own the units.

[Paul1Perth]

4 hours ago, Tulip1 said:

That is so funny (and shocking in equal measure)

Plenty of spare time on their hands those oldies

Ever seen the film cocoon

I've been watching the Kominsky Method on Foxtel. Very funny age related material, well delivered by Michael Douglas and Alan Arkin. Only about half hour shows, very good.

Edited September 29, 2021 by Paul1Perth

[Paul1Perth]

The swimming helped with the vertigo thing I have. First few strokes felt weird and it took me a few laps to bilateral breath without running into the lane rope.

[Wanderer Returns]

The Florida bonkfest sounds more appealing than fermenting in one's own pee in a high chair, but I still think it's a one-way trip to Switzerland for me.

[Rossmoyne]

On 26/09/2021 at 19:59, rammygirl said:

We are waiting for our share of my husband’s father’s estate. Probate is taking forever at the moment. 
the money will be passed directly to our sons equally to help with deposits for their first homes. Need to skip a generation as we don’t intend to die any time soon!

I did that with my inheritance when my Mum died 3 years ago.   I split it 3 ways.  My kids got a third to pay down their mortgage, and I used my third to update my very old house so that I could live here longer.

[newjez]

11 hours ago, Paul1Perth said:

The swimming helped with the vertigo thing I have. First few strokes felt weird and it took me a few laps to bilateral breath without running into the lane rope.

Never learned to bilateral breathe (does it have an E?)

I do four strokes.

[newjez]

19 hours ago, Parley said:

Imagine if you died with an estate of £3M built over a lifetime and the government trousered £1M in tax from your estate.

I'm surprised some of these rich oligarchs want to live in London.

https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.amoneythinghappened.com/post/if-i-win-the-lottery-how-much-can-i-give-to-my-family&ved=2ahUKEwiaoY-BhqXzAhUr_7sIHYwqAG0QFnoECDUQBQ&usg=AOvVaw3V-brzSwe2H8zKqLMY9z6l

[newjez]

17 hours ago, Parley said:

Retirement Villages are a very different thing to nursing homes which is what we were discussing.

Be careful about them as a lot of people get ripped off when trying to sell their unit in a retirement village.

They are a massive rip off.

[newjez]

How does UK inheritance tax work if you are resident in Australia but have assets in the UK like a house?

[Wanderer Returns]

11 hours ago, Rossmoyne said:

I did that with my inheritance when my Mum died 3 years ago.   I split it 3 ways.  My kids got a third to pay down their mortgage, and I used my third to update my very old house so that I could live here longer.

What a kind thing to do. I feel very privileged to have grown up in an era when I came home from school and mum was there because only my father needed to work. I doubt there are few kids in the 21st century who don't have both parents working. The way things are going with house prices, the next generation will be hard-pressed to afford their own home even with both parents working, without help from the Bank of Mum & Dad.

[Paul1Perth]

1 hour ago, Wanderer Returns said:

What a kind thing to do. I feel very privileged to have grown up in an era when I came home from school and mum was there because only my father needed to work. I doubt there are few kids in the 21st century who don't have both parents working. The way things are going with house prices, the next generation will be hard-pressed to afford their own home even with both parents working, without help from the Bank of Mum & Dad.

I had the same but I wouldn't say it was because only my Dad "needed" to work. He worked for ICI and then the NCB for years, mostly 7 days a week. In comparison today we were poor, not that you know it as a child, as everyone in the area was the same.

Terraced house with a Jennel, no car, parents couldn't drive, no TV, no phone, I'm sure most of the money used to go on the mortgage even then. Parents never went out much, Dad used to go to the pub probably one night a week with mates, holidays in Skegness, if we had one.

We moved from inner town Chesterfield to 4 miles away and I thought it was middle of country nowhere. I was about 10, been used to a small school that had a playground, no fields, to a school that had a big soccer field and plenty of room. Took a while to make good friends, everyone seemed to want to know how "hard" you were first and if you could play football. It was the first time I'd had enough room to play it, never been on a soccer pitch before. Luckily I got to be pretty good at it.

My Dad had to carry on working 7 days a week and my Mum had a part time job for a few years. Still no phone for years, no car, meat was a treat, butcher used to bring cuts of meat to the house couple of times a week. Eventually my parents paid the mortgage off but they would have been in their late 50's I reckon.

If you were in Chesterfield a long time you'd remember the big Coking and Chemical plant on Derby road? That's where my Dad worked for 40ish years and where I started work at 16. Apprenticeship with the NCB was good though.

It was demolished years ago and the land is so contaminated that they've never been able to build on it.

Different times, different expectations. So many outlays now before money gets put away for a mortgage. If a lady chose to stay at home and look after the kids these days everyone would be asking why. Not many of my friends Mums worked when we were young, that was just the way it was. Maybe times were better?

I know we used to appreciate the simple things more. Once a year to Skeggy miners camp on a bus, playing who coukd see the sea first. Only time of year you'd see it. Everyone really excited.

Going out on Bank Holiday weekends, picking blackberries in the pennines, maybe a ride in my uncles car, real treat. My parents never had a passport till they were in their 60's. I was the first in the family to go abroad, went to Belgium and France on a soccer trip when I was about 16. I think you could get a passport from the local post office those days. Remember my parents being really worried. 

 

[Paul1Perth]

2 hours ago, Wanderer Returns said:

What a kind thing to do. I feel very privileged to have grown up in an era when I came home from school and mum was there because only my father needed to work. I doubt there are few kids in the 21st century who don't have both parents working. The way things are going with house prices, the next generation will be hard-pressed to afford their own home even with both parents working, without help from the Bank of Mum & Dad.

Hope our 2 aren't expecting much help from the bank of Mum and Dad. There won't be one. 

If the eldest can't save on his salaryvthere's something wrong. Most of his FIFO mates have houses or apartments already, some more than one. He chose to work then travel for years. Those experiences can't be taken away and he's said to me recently he wouldn't change a thing. He had a great time, so he'll have to start saving now, in his 30's. It's doable though.

Youngest might be more of a problem. He has autism and still at home. He has a job though and probably more savings than his brother. Doesn't go out much though, still learning to drive at 25, goes everywhere on his bike.

Treated them both the same though. Both expected to pay board as soon as they started work. It's important for them to realise not to depend on anyone else if, they want something they have to save for it.