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Retirees Tax

Discussion in 'General Chat' started by Iggy_Pop, Mar 8, 2019.

  1. Smurf1976

    Smurf1976

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    No worries. :)

    For clarity, the group I am most concerned about are those under the age of 60 and who become involuntarily unemployed without realistic prospects of re-joining the workforce.

    Can't access the Age Pension - too young.

    Can't access their own Superannuation - too young.

    Can't get another job - too old.

    That is not my personal situation thankfully, though I'm well aware it could always happen, but I've seen it happen to enough people to consider it reasonably normal.

    Health can be a trigger. Manual workers who just can't do whatever they used to do anymore.

    Technological change can be a trigger. Someone's job becomes obsolete when they're 55 and at that point there's basically zero chance of getting anyone to train them in anything else.

    Age itself can be a trigger. It's politically incorrect to say it but truth is there are plenty of women in particular who will be out the door once they're no longer considered sufficiently attractive in physical appearance. Harsh, presumably against some law, but not uncommon in practice. Probably happens to a few men as well but it seems less common.

    Then of course the classic situation where some old guy who works in some lower level role really does know far more than his somewhat incompetent 30 year old boss who sees them as a threat. One way or another the old guy's about to be out of a job. Happens quite a bit in practice.

    And so on. There's plenty of ways that someone ends up retired in practice at age 50-something through no fault of their own. For some it happens in their late 40's.

    The smart ones who've seen it happen to others know full well it could happen to them and so they tend to save and invest significant sums outside of super. That's money they've paid full rates of Income Tax on, no concessions whatsoever, and whilst they're still working they'll be paying tax on the investment returns as well.

    Those are the ones I'm concerned about above all else. :2twocents
     
    cynic, jbocker, willy1111 and 2 others like this.
  2. IFocus

    IFocus You are arguing with a Galah

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    Smurf there is already a problem with older women being forced onto the streets in the very scenario you describe its happening now hopefully if Labor get elected they will address that god forbid we end up like the US although we are pretty much there.
     
    sptrawler likes this.
  3. Zaxon

    Zaxon The voice of reason

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    Would you like to buy some punctuation?
     
  4. sptrawler

    sptrawler

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    That's exactly the position I find myself in, the problem for me is multiple joint replacements, so medicals become impossible to pass.
    Thankfully only 3 1/2 years to pension age.

    The thing that worries me about Labor's proposals is, they maybe well intentioned, but all the proposals negatively affect the working class, much more than the rich in their current form.
     
    Iggy_Pop likes this.
  5. Junior

    Junior

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    These issues are prevalent and not publicly discussed enough, our system in Australia really favours couples approaching retirement, and those who can work until at least 60 years old.

    I have many female clients who work in Head Office for a major retail group (clothing), and many are fearful about how much longer they can hang onto their jobs after 50 years old.....it's a young vibe and they get pushed out.

    Another big issue affecting retirement is divorce. You have a couple who divorce with adult kids, often the woman has not earned a full time wage for 20 years. She now finds herself with a lump sum payout, and half of the ex-husband's super which is fine in the short term, but nowhere near enough for retirement. They need to somehow re-start a career at 50 years old. Not easy.
     
  6. jbocker

    jbocker

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    Someone ran the ruler over me and saw big increases in super coming (one of the small minority left on a defined benefit scheme) fair amount of long service leave and then chop. Out at 57. Magnificent work history didn't account for much. Been 4 years since, made the call to retire about 6 months after the chop. Luckily I was of age to access super. I think pension is still 5 years away, which I thought I would never rely on. But I am thinking a little differently about that now. Not easy being retired when you don't expect it.
     
    Knobby22 and sptrawler like this.
  7. IFocus

    IFocus You are arguing with a Galah

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    As a self funded retiree unless its on special no :):)
     
    Smurf1976, Skate, Iggy_Pop and 3 others like this.
  8. HelloU

    HelloU

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    and bringing the next round of div payments forwards (WBC)
     
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