1. Terry Byrne says:

    Is everyone aware that with all the smoke and mirrors of the tax on the 16000 people with high super balances, that the Govt slipped through a measure that will have a huge effect on the 80% of people relying on a full or part Centrelink Aged Pension? Apparently as of 1 January 2015 all new super based pensions will be subject to deeming by Centrelink and once your super earns over the $150 per fortnight limit, your pension will reduce by 50c in the dollar.I am already in pension phase, but my wife will not retire for another 6 years.Up until now we have been co contributing as much as possible into her superannuation and have a large inheritance due.It was going into her super, but no more.I am amazed that the media have not picked up on this, even my financial advisor had missed it.It needs more publicity in my opinion.Would like some feed back.

    • Trish Power says:

      Hi Terry
      Thanks for your comments. I agree that the change to the deeming rates for Age Pension income test is a sleeper issue – we have explained this proposed change to the Age Pension rules in the following SuperGuide article:

      • Terry Byrne says:

        Thanks Trish, really like your site.
        As regards the deeming issue, I have spoken to my neighbour who is a senior journalist with a regional newspaper here in Queensland and he is interested in doing an article on it, but he did not even know what deeming was. I explained it to him and pointed out that he is only 5 years from retirement and he will get hit with this.He is not impressed, so I am on his case to do an article.I will suggest he visits this excellent web site.
        Anyway, keep beating the drum as they say.

  2. Hello Trish,

    Fantatstic article without biase. Excellent info for we novices. I have previously sought your assistance so would be grateful for an article regarding the Military Superannuation Benefits Scheme (MSBS), a ‘somewhat’ great scheme with faults which still need fixing. My interest is in abolishing Maximum Benefit Limits (MBLs) and ensuring the Government considers the Military when increasing contributions from 9% to 12%.

  3. Hi Trish
    Merry X’mas & Happy New Year. Thanks a lot for the great work you are doing. Please continue with it.

    We must continue to lobby the Government (whichever party is in power) to reduce tax on Superannution contributions and income earned by Superannution Funds. The reason is that we are all saving for our retirement so we don’t have to rely on the Government for support when we retire. In particular, lower income section of our population.

    Everyone who works should be entitled so Superannuation Guarantee contribution from the employers, regardless of age. Most people who work past the age of 65, do so many reasons (e.g. their pension is insufficient, they want to keep themselves mentally fit, etc). If older people are working it saves the government age pension. If they are healthy, it saves the government the costs of health care etc. If we all continue to be productive it contributes to our economy and to the country.

    Best regards

  4. Ralph Creswell says:

    Dear Trish. May I add my wife and I thanks for your website. Intuitive, easy to read, up to date, topical, articles and information. These are vital reading for many of us. Wishing you and yours a safe and Happy festive season and we welcome your return in 2013.

  5. Thank you. I love this site Trish, as it keeps me current after gaining my Aussie CFP and moving to the UK.

    Tony makes a fair point, as the UK model worked on compulsory annuity purchase at 75. The system has always been tilted towards the potential to outlive your money. You can only ever get 25% as a lump sum and it must be done at the start. There are some little tricks to this of course, but mainly this is how it works. This does put people off pensions here, plus mis-selling but that’s another story.

    Having been a planner in both Aus and now in the UK, I think at some time the Aus government will need to revisit Term Certain Annuities and Complying Annuities. Encouraging people to part lock in for the long term, with a Centrelink boost as a reward was a good idea, though perhaps it came out too early. I liked them at the time and thought it was a sad loss in the 2006 (?) changes.

    The Aus system is still way ahead for retirement benefits. The equivalent of the SGC system has only just started in October in the UK, and even then, lots of people on low incomes will miss out.

    • Hi Dan
      Thanks for your kind feedback. You make some very interesting comments on a topic which I am fairly sure will be one of the topics of public debate by industry and politicians in 2013.
      Hope the weather’s not too cold in the UK.

      • Yes, our change occurs at the end of the month, where advisers can no longer receive commissions on investment or superannuation products, along with a beefed up version of PS146 education requirement too.

        The weather is often cold, but the bbq is still used once a week.

        Merry Christmas 😉

  6. Tony Newstead says:

    You may need to consider adding another item to the wishlist, this being post retirment income stream options. With the number of baby boomers about to retire perhaps having a requirement that some portion of their accumulated retirment savings need to be retained in a pension product.

  7. Brian Vernon says:

    Hi Trish
    Our local member Bill S may have failed …. but you and your team have done a great job….
    Thanks for your efforts and our best wishes for the festive season and another successful year in 2013
    Myrna & Brian
    (trustees about to become directors of their SMSF !!!)

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