The design of superannuation is part of a social contract, and people who do not understand the long-term context are often offended that super funds should be tax-free in retirement. Don’t blame Peter Costello.
Tag Archives | aged pension
The proposal to increase eligibility for the age pension to 70 was driven by budget austerity, but it overlooked the vulnerable people who could not wait that long.
Lower spending strategies and the right investment options are crucial to giving superannuation members the best chance of making their super last for an average 25 year retirement.
As more people live longer in retirement, income from super and other assets needs to stretch further to ensure a comfortable lifestyle. History makes a strong case for some allocation to equities despite the volatility.
The little-known Pension Loans Scheme allows asset-rich but cash-poor retirees to top up their part-pension income to the full amount via a loan from the government, effectively unlocking the value of their assets.