Superannuation - Compound Interest

[possum52]

21 minutes ago, Hammer61 said:

True, but you cant access Super until preservation age, or age pension at 67.

 

Age pension is also means tested but excludes the family home, so if you have a very healthy Super balance at 67 (around $850K plus) you may not get the full aged pension, many people who retire early and access Super ensure they still have enough money in Super (around $400K) then you receive both, it then scales back the more you have in Super.

 

Be wary though as the rules do change and its still better to build a decent Super balance and be self funded than to rely on the state and/or constantly having to submit information to centerlink to get the pension if you’re supplementing your super with the state pension. 

I receive both - super income stream payment plus a pension.  I haven't had to submit any information to Centrelink for at least a couple of years. I assume my super fund supplies the info directly to Centrelink.

[Hammer61]

20 minutes ago, possum52 said:

I haven't had to submit any information to Centrelink for at least a couple of years. I assume my super fund supplies the info directly to Centrelink.

Everyone’s situation is different and a lot will depend on what assets and investments you may have or not as they will all be reported to the tax office and centerlink for tax returns etc, dividend income from shares, bank interest, rental income or property in your name apart from your place of residence etc will all affect your aged pension entitlement but if you have not got any or its not much and/or all your savings are in Super then its far simpler and apart from initial applications for the aged pension it maybe years between any contact.

Edited May 18, 2022 by Hammer61

[MicCanberra]

Totally agree with most of what has been said, put away what you can, leave it alone, live off it once retired.

It shouldn't be touched for housing (or covid reasons as was allowed) or any other reason apart from terminal illness.Housing is important as well but then that is why there is access to 30-35 year home loans.

 

I was lucky, marriage didn't affect my super, except to top up both my wife's and children's super. My wife retired 8 years ago, myself last year and we are still a long way off preservation age for us.

[MMDown Under]

2 hours ago, MicCanberra said:

Totally agree with most of what has been said, put away what you can, leave it alone, live off it once retired.

It shouldn't be touched for housing (or covid reasons as was allowed) or any other reason apart from terminal illness.Housing is important as well but then that is why there is access to 30-35 year home loans.

 

I was lucky, marriage didn't affect my super, except to top up both my wife's and children's super. My wife retired 8 years ago, myself last year and we are still a long way off preservation age for us.

I retired at 60.

[MicCanberra]

We have plans to travel a lot more now we are both retired and our grandchild is in school.

[losfp]

We hope to have a bunch of money in super and various investments to go cruising once we retire, but we're a fair way off that (wife and I are both mid 40s, with two kids, 9 and 14). So we try and take trips where we can.. and dream of a time when we can take off and only have to pay for two people 😄  😄 

[Snoopkat]

10 hours ago, losfp said:

.. and dream of a time when we can take off and only have to pay for two people 😄  😄 

Haha that's us too! Before I met my partner, I was used to paying for one person travelling at off peak season. School holiday pricing is a bit of a sticker shock!

[MMDown Under]

49 minutes ago, Snoopkat said:

Haha that's us too! Before I met my partner, I was used to paying for one person travelling at off peak season. School holiday pricing is a bit of a sticker shock!

We used to pull our children out out of school early at the end of November to access cheap fares overseas. 

[MMDown Under]

On 5/17/2022 at 5:49 PM, MMDown Under said:

Yes I put extra in, when I had my two children on unpaid maternity leave.  

Looking at the current stock market adjustment, I'm reminded I put $30,000 in to my super to cover my periods on maternity leave on no pay.  I kept this amount separate to the rest of my super.  In a downturn, I was surprised go see most of this amount disappear.  I decided I would withdraw my money from Super when my account recovered this amount.  Which I did!

[joejoe 59]

On 5/18/2022 at 3:32 PM, Hammer61 said:

True, but you cant access Super until preservation age, or age pension at 67.

 

Age pension is also means tested but excludes the family home, so if you have a very healthy Super balance at 67 (around $850K plus) you may not get the full aged pension, many people who retire early and access Super ensure they still have enough money in Super (around $400K) then you receive both, it then scales back the more you have in Super.

 

Be wary though as the rules do change and its still better to build a decent Super balance and be self funded than to rely on the state and/or constantly having to submit information to centerlink to get the pension if you’re supplementing your super with the state pension. 

We live off our super & have since 60, so definitely don't need to be 67.

It's our only income so without it we would still be working 😱

[Hogbay]

4 hours ago, joejoe 59 said:

We live off our super & have since 60, so definitely don't need to be 67.

It's our only income so without it we would still be working 😱

Super is tax exempt once you reach your preserved age which is dependant on your dob ,60 is the latest. Age pension you must be 67 before you can receive and meet the assets test.

[joejoe 59]

24 minutes ago, Hogbay said:

Super is tax exempt once you reach your preserved age which is dependant on your dob ,60 is the latest. Age pension you must be 67 before you can receive and meet the assets test.

Yes we have to be 67 which isn't for a few years yet. We will look into what benefits we can get from the government when the time comes.

We are very grateful to be able to self fund ourselves in the meantime. 

[Aus Traveller]

1 minute ago, joejoe 59 said:

Yes we have to be 67 which isn't for a few years yet. We will look into what benefits we can get from the government when the time comes.

We are very grateful to be able to self fund ourselves in the meantime. 

In my opinion, the main benefit to look for is the Commonwealth Senior's Health Care Card. It is available at pension age. However, you may already be eligible for the Low Income Earner's Health Care Card. This is assess in income and does not take assets into account. Both of these allow you to buy medicines at the same rate as pensioners (currently $6.80).

[NumnuT_OZ]

hoping to retire at 60, in 8 years, or maybe Voluntary Redundancy at around 58 onwards if offered.

 

😉

 

1 cruise booked for Xmas, first cruise as Diamond on Ovation to NZ

just need  a bit more work(nag) to get a second cruise booked!

[MMDown Under]

On 5/21/2022 at 1:26 PM, Aus Traveller said:

In my opinion, the main benefit to look for is the Commonwealth Senior's Health Care Card. It is available at pension age. However, you may already be eligible for the Low Income Earner's Health Care Card. This is assess in income and does not take assets into account. Both of these allow you to buy medicines at the same rate as pensioners (currently $6.80).

It is worth enquiring about your eligibility if you are on a low income, because it is not backdated.

[NSWP]

1 hour ago, MMDown Under said:

It is worth enquiring about your eligibility if you are on a low income, because it is not backdated.

To get the Commonwealth Seniors Healthcare Card a single person (no dependents) has to have an income stream of less than $56,000 pa.   For a couple it is $89,000.   I am on a defined benefit State Super Pension, in excess of 56K, ineligble for card, that makes me real cranky.  Had the card when my wife was alive, when she passed away 2 years ago, our generous government cancelled it 3 days after she passed away. Now for me it is full freight at the chemist for my stay alive pills.

 

Sorry, I just remembered I have told this sorry tale before, apologies folks, must be time for scotch o'clock.

Edited May 24, 2022 by NSWP

[Aus Traveller]

3 minutes ago, NSWP said:

To get the Commonwealth Seniors Healthcare Card a single person (no dependents) has to have an income stream of less than $56,000 pa.   For a couple it is $89,000.   I am on a defined benefit State Super Pension, in excess of 56K, ineligble for card, that makes me real cranky.  Had the card when my wife was alive, when she passed away 2 years ago, our generous government cancelled it 3 days after she passed away. Now for me it is full freight at the chemist for my stay alive pills.

 

Sorry, I just remembered I have told this sorry tale before, apologies folks, must be time for scotch o'clock.

When the outgoing government promised to lift the cut-off point for the Comm Seniors Healthcare Card, I thought of you Les. Presumably that won't happen now.

[MMDown Under]

1 minute ago, NSWP said:

To get the Commonwealth Seniors Healthcare Card a single person (no dependents) has to have an income stream of less than $56,000 pa.   For a couple it is $89,000.   I am on a defined benefit State Super Pension, in excess of 56K, ineligble for card, that makes me real cranky.  Had the card when my wife was alive, when she passed away 2 years ago, our generous government cancelled it 3 days after she passed away. Now for me it is full freight at the chemist for my stay alive pills.

Am I right remembering defined benefit means you receive a set amount for life, eg if you live to 100 you will be ahead.  I was cranky when Qld Govt encouraged super members to move out of guaranteed defined benefit to more risky super investments,  If you remarry a younger wife does super transfer to her on your passing? 

[Hogbay]

$56 ,000 PA .🙉

[MMDown Under]

8 minutes ago, NSWP said:

To get the Commonwealth Seniors Healthcare Card a single person (no dependents) has to have an income stream of less than $56,000 pa.   For a couple it is $89,000.   I am on a defined benefit State Super Pension, in excess of 56K, ineligble for card, that makes me real cranky.  Had the card when my wife was alive, when she passed away 2 years ago, our generous government cancelled it 3 days after she passed away. Now for me it is full freight at the chemist for my stay alive pills.

I would be cranky also as it is a great saving on medical?  Did you get the recent $250 once off?

[Aus Traveller]

Just now, MMDown Under said:

I would be cranky also as it is a great saving on medical?  Did you get the recent $250 once off?

I am pretty sure that Les would not have received the $250 payment or previous such payments because he isn't as concession card holder.

[NSWP]

30 minutes ago, Hogbay said:

$56 ,000 PA .🙉

I paid into it for 36 yrs. 6% of my salary per fortnight, no more, no less and compulsory. Police 👮‍♀️ pension scheme is a bit different to other State Super schemes.

Edited May 24, 2022 by NSWP

[NSWP]

24 minutes ago, Aus Traveller said:

I am pretty sure that Les would not have received the $250 payment or previous such payments because he isn't as concession card holder.

Correct, no $250

[NSWP]

37 minutes ago, MMDown Under said:

Am I right remembering defined benefit means you receive a set amount for life, eg if you live to 100 you will be ahead.  I was cranky when Qld Govt encouraged super members to move out of guaranteed defined benefit to more risky super investments,  If you remarry a younger wife does super transfer to her on your passing? 

Yes if i did would pass on to her. Otherwise dies with me, but no complain, I have been getting it for 19 yrs, retired at 55.

 

I had better watch out for the cruising cougars, lol.

Edited May 24, 2022 by NSWP

[NSWP]

30 minutes ago, MMDown Under said:

Am I right remembering defined benefit means you receive a set amount for life, eg if you live to 100 you will be ahead.  I was cranky when Qld Govt encouraged super members to move out of guaranteed defined benefit to more risky super investments,  If you remarry a younger wife does super transfer to her on your passing? 

Correct, get it until I go to the big cruise ship in the sky. Indexed to cpi.