Retirement income

Pensions increase with inflation rate from 20 March

Nearly five million people will get a small rise in their pensions or government allowances from 20 March as part of the twice-yearly indexation.

Social Services Minister Christian Porter said the 1.3 per cent increase reflected the Consumer Price Index (CPI) over the six months to December 2016.

The Age Pension and Disability Support Pension will lift by $11.20 a fortnight, bringing the maximum single rate to $888.30 a fortnight.

The rate will rise by $16.80 for a couple combined to $1,339.20 (including Pension Supplement and Energy Supplement).

Pensions increase with inflation rate from 20 March

Nearly five million people will get a small rise in their pensions or government allowances from 20 March as part of the twice-yearly indexation.

Social Services Minister Christian Porter said the 1.3 per cent increase reflected the Consumer Price Index (CPI) over the six months to December 2016.

The Age Pension and Disability Support Pension will lift by $11.20 a fortnight, bringing the maximum single rate to $888.30 a fortnight.

The rate will rise by $16.80 for a couple combined to $1,339.20 (including Pension Supplement and Energy Supplement).

Most expect to work into retirement years

New research shows most Australians in paid employment expect to be working in some form well into their retirement.

A total of 61 per cent of workers surveyed believed their working life would continue into their retirement years.

Seventy per cent said they expected to draw a government pension in retirement.

Galaxy Research’s Ready to Retire Study, commissioned by News Corp Australia in partnership with Industry SuperFunds, found many workers were concerned about how much they would need in retirement savings to live stress-free.

One in two households set for comfortable retirement, report shows

Only one in two Australian households are expected to have enough money for a comfortable retirement, a new report shows.

The latest CommBank Retire Ready Index released this week shows that 53 per cent of households would have enough combined super, personal assets and the Age Pension.

But when the Age Pension was removed, the number of households able to afford a comfortable retirement dropped to 17 per cent, and to a meagre six per cent when based on superannuation only.

Breakfast seminars discuss retirement finances

If you are newly retired, transitioning to retirement or about to give up paid work, National Seniors’ breakfast seminars may help sharpen your financial focus in 2017.

The seminars will be presented by National Seniors Financial Information Desk.

Topics covered include understanding your own situation and the resources you can use, opportunities for fully self-funded retirees, Government Income Support (GIS) and the potential use and types of Equity Release Products.

A question and answer session will follow each presentation.

Unpaid super costs workers dearly, new research finds

Workers on the verge of retirement who are short changed on their superannuation entitlements have nest eggs worth tens of thousands of dollars less than those who are paid correctly, new research shows.

Using the latest 2013-14 data from the Australian Tax Office (ATO), Industry Super Australia found that people aged 60 to 64 earning between $50,000 and $75,000 whose employers did not correctly pay their Super Guarantee (SG), had overall super balances $35,089 or almost 40 per cent less than those who were.

Survey shows Australians delaying retirement

A new survey has found the average age that Australians intend to retire has risen from 58 to 61 in the last two years.

But the Roy Morgan Single Source survey of 50,000 people also showed that the average gross wealth per person, excluding owner-occupier homes, was just $286,000 in 2016, up just 3.6 per cent since 2014.

The overall conclusion from the survey was that on average, intending retirees will be relying on some government benefits for some time to come, even with the changes to the eligibility rules.

Many employers pocket super benefits, study shows

A new study has found that many employers are effectively pocketing some or all of the benefits of employees who salary sacrifice super contributions from lower incomes.

The analysis, undertaken by Industry Super Australia and Construction and Building Unions Superannuation (Cbus), showed an estimated 2.4 million Australians are not being paid their legal super entitlements.

Plan now for pension assets test changes

National Seniors is urging its members to check if they will be impacted by the Age Pension assets test which comes into force from 1 January 2017.

Media reports this week have said that affected pensioners will not be officially notified until Centrelink sends them a letter shortly before Christmas.

National Seniors Chief Executive Dagmar Parsons said some older people are very anxious and need help to understand how the changes will affect them, so they can consider their options.

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