RETIREES – AUSTRALIA

700,000 retirees overpaying on super fund tax, says SMC

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Original article by Glenda Korporaal
The Australian – Page: 19 : 29-Jan-25

New research from the Super Members Council suggests that many Australian retirees are needlessly paying tax by leaving their superannuation in accumulation mode. These earnings are taxed at 15 per cent; in contrast, earnings from super funds in the retirement phase are not taxed, provided the fund’s balance is less than $1.9m. The research has found that about 700,000 people over the age of 65 who are no longer working full-time still have money in accumulation accounts, which is estimated to cost them an average of about $650 a year.

CORPORATES
SUPER MEMBERS COUNCIL OF AUSTRALIA LIMITED

Retirees hit but ‘it’s for the good of all’

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Original article by Patrick Commins
The Australian – Page: 4 : 4-Nov-20

Reserve Bank governor Philip Lowe has conceded that retirees and savers will be hard hit by the decision to reduce the cash rate to a record low of 0.1 per cent. However, Lowe contends that they need to be mindful of the "collective good", arguing that lower rates will benefit the broader community by supporting spending and creating jobs. Rice Warner’s executive director Michael Rice notes that retirees who are only partly self-funded will be particularly hard hit by the decline in deposit rates, and many will become more reliant on the age pension.

CORPORATES
RESERVE BANK OF AUSTRALIA, RICE WARNER ACTUARIES PTY LTD

Seniors big winners in budget lift

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Original article by Simon Benson, Rick Morton, David Uren
The Australian – Page: 1 & 6 : 8-May-18

The Federal Government’s May 2018 Budget will feature a range of measures targeted at older Australians. Amongst other things, the government is expected to provide funding for an additional 20,000 people to receive in-home care, while a scheme that enables retirees to remain in the workforce without affecting their pension entitlements is tipped to be expanded. Meanwhile, people on low and middle incomes are expected to receive a tax cut of about $A10 a week.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. DEPT OF SOCIAL SERVICES

Labor back tracks on shares grab

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 27-Mar-18

The Australian Labor Party has announced changes to its policy to abolish cash refunds for franking credits, stating that full and part-pensioners will be exempt from its proposal. The backdown is expected to reduce the savings that Labor expects the policy to generate from $A59 billion to $A55.7 billion over the first decade of its implementation. Also exempt from the policy will be any self-managed superannuation fund that has at least one pensioner or other allowance drawing from it prior to 28 March.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF HUMAN SERVICES. MEDICARE AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF EDUCATION AND TRAINING

Shorten in scramble to fix tax grab

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Original article by Simon Beavis
The Australian – Page: 1 & 6 : 15-Mar-18

Federal Opposition Leader Bill Shorten has signalled that he is open to a compromise regarding plans to unwind changes to the dividend imputation system, amid concern about the potential impact on retirees. Shorten has conceded that about 250,000 pensioners would be affected by the policy, and he has indicated that Labor will look at measures to ensure that they are not worse off. The Self-Managed Super Fund ­Association and seniors groups have urged Labor to reconsider the policy, while Prime Minister Malcolm Turnbull has accused Labor of targeting pensioners and self-funded retirees in a "cash grab".

CORPORATES
AUSTRALIAN LABOR PARTY, SMSF ASSOCIATION, NATIONAL SENIORS AUSTRALIA LIMITED, ASSOCIATION OF INDEPENDENT RETIREES (AIR) LIMITED, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF HUMAN SERVICES. CENTRELINK

Over 400,000 Australians intend to retire in the next 12 months, increasing burden on government funding

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 8-Sep-16

Roy Morgan Research estimates that 415,000 Australians intend to retire in the next 12 months, compared with 327,000 in 2008. Some 228,000 men and 187,000 women intend to retire in the next 12 months. The magnitude of the intending retirements, combined with the fact that their average retirement funding is inadequate for being "self-funded", is likely to increase substantially the need for government support. Currently the average gross wealth (total assets excluding owner-occupied homes) of intending retirees is $A306,000, up from $A231,000 in 2008. Although the average debt level for this group is currently only $A25,000, it does reduce their average net wealth to $A281,000, which is generally inadequate for self-funded retirement.

CORPORATES
ROY MORGAN RESEARCH LIMITED, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED

Call to count home in pension

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Original article by Adam Creighton
The Australian – Page: 2 : 14-Mar-16

A report from the Actuaries Institute argues the case for retirees’ homes to be included in the means test for the age pension. The report notes that around one per cent of retirees’ home equity is currently being used to provide a retirement income stream. The institute has also proposed streamlining the regulation of home-equity release products such as reverse mortgages, as well as a reduction in stamp duty to encourage retirees to move to smaller homes.

CORPORATES
THE ACTUARIES INSTITUTE, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, AUSTRALIA. NATIONAL COMMISSION OF AUDIT, AUSTRALIA. PRODUCTIVITY COMMISSION, THE CENTRE FOR INDEPENDENT STUDIES LIMITED, AUSTRALIAN LABOR PARTY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Retirees urged to sell homes

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Original article by Jacob Greber
The Australian Financial Review – Page: 1 & 6 : 1-Dec-15

The Productivity Commission will release a report on housing and retirement on 1 December 2015. The commission will recommend releasing capital which is now frozen as equity in residential property. This money could be used as retirement income. Commissioner Karen Chester says Australians must change their attitude to property.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED

Retired engineer calls Treasurer’s wealth idea crap

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Original article by Ben Potter
The Australian Financial Review – Page: 5 : 25-Sep-15

Older Australians own almost $A1bn worth of residential property assets. Treasurer Scott Morrison has proposed that they capitalise on this wealth by downsizing to a smaller home and using the proceeds to help finance their retirement. However, retired engineer Peter Walker argues that many retirees could not afford to buy a smaller home that is close to family and friends. Walker and his wife opted for a home equity loan rather than a reverse mortgage to provide them with a retirement income stream.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PRODUCTIVITY COMMISSION, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, HOMESAFE SOLUTIONS PTY LTD

No evidence retirees are wasting super

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 7-Jul-15

A Productivity Commission report estimates that retirees’ superannuation balance would be bolstered by at least 10 per cent if they were not able to access their super until the age of 65. The report also refutes the widely-held view that members of the Baby Boom generation are reorganising their finances or spending their super payout on expensive holidays in order to qualify for the age pension.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET