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.

6 comments

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.

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 !





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I don't get it ........why is this person complaining that his Asset has grown considerably............... and has the current value of it impacted to an amount over the Pension threshold which precludes them from getting the age Pension ...............Is this the story



If this is the problem why not sell the house and invest the money and live in luxury



..



Anyway they both are enjoying their work and really don't want to retire and to sit around and do nothing



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Just a "whinging wally" in my book. As BigVal and Clay pointed out the answer is obvious.

I don’t get it ........why is this person complaining that his Asset has grown considerably............... and has the current value of it impacted to an amount over the Pension threshold which precludes them from getting the age Pension ...............Is this the story



If this is the problem why not sell the house and invest the money and live in luxury



..



Anyway they both are enjoying their work and really don’t want to retire and to sit around and do nothing



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Clay I think it is you would don't get it--as I have pointed out b4--it is not our problem if our house goes up in value--all places do in the end--

when you work hard and strive for where you have wanted to live all your life you expect to be able to STAY there and not keep moving.

Plan B he is complaining that his house which is an investment and is currently occupied as a rental by his daughter and family - always a mistake - so he cant sell it and anyway it has gone up in value. Now he and his wife still work. So cant get on the pension when working - and cant give up work as they own this investment house which means they cant get the Age Pension.



with me so far.



Now he does not say whether he has any super or other investments and still working at his age must have paid off his own and investment houses by 65 as no bank lends past that and 10 years as he is 75.

so must have had some spare cash !!!



He may just be whinging. He may like so many have no idea what it is like to live on $181 a week or $134 if married and no other income. Why so many not on it or until recently didn't need it - get so worked up I don't know but they do and it is pure jealousy and the other side is always greener mentality. Or proof positive that they too know they paid in for it too in their income taxes!!



SFR were not happy until they got all the concessions for pensioners and look at the cut off points - ludicrous in comparison to Age Pension and they get paid [b]each whatever their marital status on bonuses[/b]. Married OAPs have to share as well as being $200 down on a single.



Life is not fair.



He has solutions - he just wont do the hard yakka like getting rid of his tenant and selling it and then stuck with the money and cant gift it all to daughter and maybe another child too - who knows - but he wants the government to help him out when in all probability they will [b]lower[/b] the assets test not raise it.



BTW historically too real estate doubles in a 7 year cycle.



It just went up faster last cycle and now will adjust downwards as the young ones who borrowed top dollar on two salaries lose at least one job and have to sell.



Mortgagee sales always rise in recessions and the banks lent irresponsibly for last few years on 100% of both incomes and no one thought that the good years would ever end !!



Just as no one ever imagines they will ever be on the Age Pension with no other income or like us with a government who only governs for the "working families".

Yep get the point Val ;-) thanks

6 comments



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