Latest news with #superannuation
Yahoo
2 days ago
- Business
- Yahoo
Centrelink pension warning for 4.3 million Aussies facing super nightmare: 'Shock'
Australians are being urged to ensure they're doing everything they can to boost their superannuation to avoid a difficult retirement. Finder research recently discovered roughly 4.3 million Aussies fear they won't have enough in their nest eggs to comfortably enjoy their twilight years. A poll of more than 1,2000 Yahoo Finance readers found 65 per cent would try to get the Age Pension if they weren't able to make ends meet. But Pascale Helyar-Moray, Finder's superannuation literacy expert, told Yahoo Finance going down this route was not a sure thing. "People just assume the Age Pension is there and there aren't any criteria or qualifiers around it," she said. "But they could not be further from the truth." RELATED Terrifying super reality facing 4.3 million Aussies Major warning after Aussie receives random $350 payment Kmart, Bunnings warning over $15 purchase causing bill shock for shoppers What do I need to do to access Centrelink's Age Pension? According to government figures, around 2.6 million people are on the Age Pension. Before they were approved for the payment, they had to undergo income and assets tests to ensure they were eligible. If you're single and receive up to $218 per fortnight in income, your pension rate won't be affected. However, if you're over that threshold, the rate will decline by 50 cents for each dollar above $218. If you're in a couple, that income threshold is $380 per fortnight, and anything above that reduces your rate by 25 cents for each dollar cut-off point for income is $2,516 per fortnight for singles, and $3,844 for couples living together. Meanwhile, the assets that would be examined by Services Australia include: Financial investments Home contents, personal effects and vehicles Real estate, annuities, income streams and superannuation pensions Sole traders, partnerships, private trusts and private companies To be eligible for a full pension, you can not have assets worth more that a certain amount. This differs depending on whether you're single, in a couple, or if you're a home owner. A single homeowner is allowed upwards of $321,500 in assets, while a non-homeowner can have up to $579,500. A couple who owns their home aren't allowed to have more than $481,500 combined, but that shoots up to $739,500 for non-homeowners. The part pension allows a single homeowner to have up to $704,500 in assets, and $962,500 as a non-homeowner. A couple can have $1.059 million combined as homeowners, and $1.317 million as non-homeowners. A person's primary place of residence, as well as up to the first two hectares of land it's on, aren't included in the asset test. Helyar-Moray told Yahoo Finance these thresholds can catch a lot of people out as they might be cash-poor but asset-rich. That could drastically affect how much they could receive, and, as a result, have in retirement to live off. Tough reality of living on the Age Pension The superannuation expert said while many sign up for the Age Pension if they didn't have enough superannuation, it's not as if it's a ticket to financial freedom. "Unless you've looked at the the how much the pension is, it's a bit of a shock," she told Yahoo Finance. The maximum rate, including the supplement and energy rebate, for a single person is $1,149 per fortnight before tax and $866.10 per person in a couple. It's also worth pointing out that the Age Pension is a taxable payment. Centrelink doesn't automatically deduct tax from the payment when it lands in your account, however you can set that up to avoid facing a debt at tax time. Helyar-Moray said $574.50 isn't much to live off per week if you ran out of superannuation. If your home was paid off, you'd have a bit more breathing room. However, the number of Aussies entering retirement with mortgages still to pay off has more than tripled over the last two decades. There are also more than 200,000 retirees renting. The Grattan Institute found 67,000 of those renters live in poverty. The median rent across Australia was recently $644 per week, according to Canstar, with that number rising to $675 per week if you only focused on capital cities. "Even if you lived in one of the least-affluent parts of Australia, you'd be having to watch your money very carefully to make sure that it lasted," Helyar-Moray said. "Without people doing the research and planning ahead and knowing that's the quantum that they'd have to play with, I think to be relying on the government to support them in their retirement is not a sound strategy." How to avoid retirement reality facing 4.3 million Aussies The superannuation expert said your nest egg should never be viewed as a set-and-forget type of asset. She encouraged Aussies to regularly know how much they have saved up, what they're invested in, and whether they could be in a better fund. "Put very simply, performance should be high, high and fees should be low. That's really what it comes down to," Helyar-Moray said. She added that salary sacrificing or personal super contributions can be a fantastic way of boosting your nest egg while you're still working. Your employer has to now put 12 per cent of your pay into your super, however, you can also put in additional contributions. which can add up if you start early. If you had $60,000 in your super right now and contributed just $10 per week to your account, you would have boosted your nest egg by $319,091 over 20 years, based on a 9 per cent rate of return and monthly compounding.
Daily Telegraph
2 days ago
- Business
- Daily Telegraph
4.3 million Aussies think they can't afford to retire
An alarming number of Austalians fear they won't have enough money in super or other investments to live off once they hit retirement as housing costs chew up a growing share of their income. Polling by comparison group revealed about a fifth of Aussies said they didn't have enough money in their combined assets to fund a retirement. The Association of Superannuation Funds of Australia (ASFA) recommends $595,000 for singles and $690,000 for couples for a comfortable retirement. In contrast to these figures, Finder states the average Australian has $172,835 in super, with a median much lower at $60,037. MORE: 'Dungeon of stench': Ugly Block snub exposed This comes as much of the population continues to spend a disproportionate amount of their earnings on housing, with about one in five Aussie homeowners directing more than half of their income into mortgage repayments each month. The proportion of homeowners spending more than a third of their income on repayments was even higher, accounting for three quarters of those with a mortgage. The high mortgage expenditure means these homeowners have scant income leftover to store away for retirement. Finder revealed one in five, or 20 per cent of Aussies, believe they will have enough money to get by in retirement but will probably have to cut back on their spending. One in 10 said their super balance was too low but they will have enough in other investments. About one in four, or 27 per cent, said they were not sure if they would have enough money to survive once they they hit retirement. Finder superannuation expert Pascale Helyar-Moray said retirement may be financially out of reach for a large share of Australians. Insufficient super or savings could see millions of Aussies facing financial strain in the later years, she said. 'More and more people are worried that retirement will arrive before the money does, leaving them underprepared,' she said. Ms Helyar-Moray said some Australians assumed they will fall back on the Age Pension, but this wasn't guaranteed. Ms Helyar-Moray urged Aussies to consider playing catch-up by contributing to their super through salary sacrifice to build a bigger safety net. 'You won't be able to access your super until retirement, so it's wise to ease into it – $100 a month may not sound like much, but it can make a real impact over time.' Ms Helyar-Moray added Aussies need to make sure their super fund is not charging them excessive fees and providing good returns. 'Make sure that you aren't stuck in a poorly performing fund and check regularly that your employer is paying your 12 per cent Superannuation Guarantee contributions on time.'
SBS Australia
2 days ago
- Politics
- SBS Australia
NITV Radio Full - 28/07/2025
The newly reformed Coalition has yet to determine its position on net zero targets, with differing views held by MPs. Nationals MP Barnaby Joyce says he looks forward to the debate over emission reduction targets that will be triggered when he introduces his private member's bill that proposes repealing Australia's emission reduction targets. NITV Radio speaks with Senior Curator Hanna Presley for an exhibition at the Buxton Contemporary, The Veil, currently until November later this year. A new report has found that First Nations Australians are twice as likely as other Australians to have trouble accessing their independent research highlights the systemic barriers First Nations peoples face which include rigid policies, inaccessible customer service and a lack of accountability. That and more on NITV Radio.
Irish Times
2 days ago
- Business
- Irish Times
Review completed into Ministers who owe, or are owed, cash due to pension error
A review into whether Ministers owe or are owed potentially thousands of euro arising from errors calculating their pension deductions has been completed, the Department of Public Expenditure has said. However, the department said it will not disclose the numbers involved or the details regarding those affected. Minister for Public Expenditure Jack Chambers said in June that 'serious and systemic operational issues' had been identified at the National Shared Services Office (NSSO), which handles pension payments. He said the issues related to 'superannuation deductions and additional superannuation contributions with respect to salaries , allowances or gifted income'. READ MORE [ Ministers receive pay increases in new Cabinet under public sector deal Opens in new window ] At the time, it was estimated that the amounts that would need to be recouped from Ministers and former members of the Government would range from hundreds of euros to just above €30,000. It was also forecast that some Ministers could be owed money, ranging from several hundred euros up to about €20,000. It is understood that part of the problem arose from the treatment of part of Ministers' income returned to the State in recent years, and how their pension deductions were calculated as a result. Mr Chambers told the Dáil earlier this month that a review concerning Ministers 'who may have been impacted regarding contributions and additional superannuation contributions, has been completed'. Will Fianna Fáil and Sinn Féin abstain from the presidential race? Listen | 40:42 He said those Ministers identified as being affected were being contacted and engagement was ongoing. 'I understand from the National Shared Services Office that many recoupment plans are now in place.' [ Junior ministers to be paid extra €45,846 on top of TD salaries Opens in new window ] Mr Chambers said his department and the NSSO had 'put new measures and controls in place to ensure these matters do not recur'. The department this weekend said it would not be providing details regarding the number of Ministers who had been affected by the pension calculation errors. 'As the numbers concerned are relatively small, it would not be appropriate to provide details on an anonymised basis or to provide the numbers concerned, as to do so could identify the individuals involved,' it said.
News.com.au
2 days ago
- Business
- News.com.au
4.3 million Aussies think they can't afford to retire
An alarming number of Austalians fear they won't have enough money in super or other investments to live off once they hit retirement as housing costs chew up a growing share of their income. Polling by comparison group revealed about a fifth of Aussies said they didn't have enough money in their combined assets to fund a retirement. The Association of Superannuation Funds of Australia (ASFA) recommends $595,000 for singles and $690,000 for couples for a comfortable retirement. In contrast to these figures, Finder states the average Australian has $172,835 in super, with a median much lower at $60,037. This comes as much of the population continues to spend a disproportionate amount of their earnings on housing, with about one in five Aussie homeowners directing more than half of their income into mortgage repayments each month. The proportion of homeowners spending more than a third of their income on repayments was even higher, accounting for three quarters of those with a mortgage. The high mortgage expenditure means these homeowners have scant income leftover to store away for retirement. Finder revealed one in five, or 20 per cent of Aussies, believe they will have enough money to get by in retirement but will probably have to cut back on their spending. One in 10 said their super balance was too low but they will have enough in other investments. About one in four, or 27 per cent, said they were not sure if they would have enough money to survive once they they hit retirement. Finder superannuation expert Pascale Helyar-Moray said retirement may be financially out of reach for a large share of Australians. Insufficient super or savings could see millions of Aussies facing financial strain in the later years, she said. 'More and more people are worried that retirement will arrive before the money does, leaving them underprepared,' she said. Ms Helyar-Moray said some Australians assumed they will fall back on the Age Pension, but this wasn't guaranteed. Ms Helyar-Moray urged Aussies to consider playing catch-up by contributing to their super through salary sacrifice to build a bigger safety net. 'Super earnings below $30k are taxed at a maximum of just 15 per cent, which means salary sacrificing into super could help grow your wealth while also lowering your tax,' she said. 'You won't be able to access your super until retirement, so it's wise to ease into it – $100 a month may not sound like much, but it can make a real impact over time.' Ms Helyar-Moray added Aussies need to make sure their super fund is not charging them excessive fees and providing good returns. 'Make sure that you aren't stuck in a poorly performing fund and check regularly that your employer is paying your 12 per cent Superannuation Guarantee contributions on time.'
