The pension asset test
Interesting point of view emailed in by AboutSeniors subscriber Wally.
Although I had pointed out the fact that the asset limits, which serve to judge,
whether a person of pension age is entitled to the age pension, have not kept up
with rising house prices. Quite some years before pension age, we had sunk our
money into an investment home, hoping that it might provide a small rental income,
which, when declared, would reduce our pension by a small amount. The value of the
house at the time of purchase was well within and even far below the pension asset limit.
House prices in WA have sky - rocketed over the last few years and have not receded
by much, despite the current, so-called, economic and financial crisis. On the contrary,
they have held firm and in some suburbs have even risen further. This now means
that this house has become an unsaleable asset, as our daughter and her children now live in it and it also debars
us from getting the age pension and my wife 69 and I, 75 have to continue working part-time
until we drop dead. Luckily, both our professions are in demand and we both enjoy
our work. We are not stealing jobs of the younger generation by still working, for the latter
does not have the required experience, training or qualifications. However, we were each looking
forward to enjoying the so-called golden years (what a misnomer) travelling or perhaps
enjoying a good book by the fireside etc.
None of the politicians that I had written to about the issue of "asset limits"
acknowledged that this is in fact a current issue for many pension age seniors. I simply received a polite
letter back, thanking me for having written and that they, the politicians, are continuously
working for the well-being of all Australians, including the elderly.
Perhaps the matter of lagging asset limits could be brought to the attention of the "seniors" president
who might raise the issue, when next lobbying politicians on seniors issues ?!
I feel certain that there must be quite a number of Australians in a similar position, where their once humble 80K
investment home or beach hut has turned into a 800k asset due to no doing of their own !
Food for thought !
From a working senior, dreaming of a happy retirement.
Well don't think he will get much sympathy from most trying to live on the Age Pension now.
He has the answer well within his grasp and is just trying to get on the pension as he feels like many that he has paid for it. Bit of an elitist too on his excuse for keeping on working - no law that says you have to give up work to younger folk - yet.
He must have some "pull" as most politicians wouldn't even bother to answer it - could have been a staffer who thought he may kick up a stink if he didn't get one.