I engaged with my finances actively, and enlisted the help of a financial advisor for 20 plus years. A lot of good it did me. All the financial advice in the world does not help when you don’t have a steady job and you have periods of unemployment or under employment that last up to 18 months. I am almost 70 with no chance of retirement. Australia’s superannuation system has failed older people especially women and those in low paid jobs, and the pension for single people is so small, it is only viable if one has a house that is already paid off. If you’re paying a mortgage like me or renting, you are in deep trouble. So despite my best plans, I will have to work until I drop dead.
The pension in Australia is designed for people who own their homes. Even then many on a pension live below the poverty line. It’s not enough to cover even a small mortgage. Those who rent can get extra - but it isn’t enough to cover most rents. Also, you are restricted in how much you can earn - up to $109 per week (taxable) for a single person before your pension is reduced. The maximum you can earn in a week is $150 ($7800 per year). If you earn more than that, your pension is suspended. Given the cost of living in Australia, $7800 doesn’t go far on either rent or mortgage.
In the UK, the pension isn't enough to live on which is why I still am earning on top of my pension at nearly 73 but there is Pension Credit for older people who have pensions but can't afford their rent etc? Does that exist in Aus?
No. There is only rent assistance which is around $100 per week for a single person. Given a one bedroom apartment is likely to cost $400 - $800 per week, it’s not a lot!
I engaged with my finances actively, and enlisted the help of a financial advisor for 20 plus years. A lot of good it did me. All the financial advice in the world does not help when you don’t have a steady job and you have periods of unemployment or under employment that last up to 18 months. I am almost 70 with no chance of retirement. Australia’s superannuation system has failed older people especially women and those in low paid jobs, and the pension for single people is so small, it is only viable if one has a house that is already paid off. If you’re paying a mortgage like me or renting, you are in deep trouble. So despite my best plans, I will have to work until I drop dead.
Sorry to hear that... How is the state pension in Aus and do you get that?
The pension in Australia is designed for people who own their homes. Even then many on a pension live below the poverty line. It’s not enough to cover even a small mortgage. Those who rent can get extra - but it isn’t enough to cover most rents. Also, you are restricted in how much you can earn - up to $109 per week (taxable) for a single person before your pension is reduced. The maximum you can earn in a week is $150 ($7800 per year). If you earn more than that, your pension is suspended. Given the cost of living in Australia, $7800 doesn’t go far on either rent or mortgage.
In the UK, the pension isn't enough to live on which is why I still am earning on top of my pension at nearly 73 but there is Pension Credit for older people who have pensions but can't afford their rent etc? Does that exist in Aus?
No. There is only rent assistance which is around $100 per week for a single person. Given a one bedroom apartment is likely to cost $400 - $800 per week, it’s not a lot!