willywh3r3

Hi,

How do old people (with no income) live? Does Australia have pension system. And how can young people contribute to their pension when they are old.

Any help would be appreciated

Regards,
Wil

pommie bastard

State pensions are means tested ,you still have to pay for some health care so they give you Health Card this gives some discount on subcriptions etc.
Everyone has a Super into this goes 9% of your income , the idea is you will become a self funded pensioner so the state does not have to keep you.
Because of stock market falls last year we lost 19% of our super fund last year and its not looking so great this year.
All welfare is means tested so do not think the state will look after you if you have any cash at all , you could lose everything you own before welfare kicks in.Best of Luck

willywh3r3

I don't understand these first and second paragraph. Care to explain more about this?

Thank you
Wil

stay or go ?

superannuation fund. a contribution of 9% of your salary into a manged fund set aside for retirement. the minimum level of contribution is 9% - you can make more, you can have more super funds, your employer can match your super fund contribution.

similar to the UK National Insurance kind of thingey, though Superannuation contributions are a lot more visible as they are deducted by your employers payroll department at source and sent to the accout - you dont see any of it !

however, I do believe that if you leave australia before you retire, you can claim up to 52% of all superannuation contributions back (quite nice if you dont want to stay, but have been paying super)

lots of variations as to how much / how / when / who does what with superannuation. do a google search for more information.

pommie bastard

Our Super fund is invested in international stocks so they go down we lose out , ie if you had $100,000 at the start of last year your statement would show that your fund would now be worth $81,000 after stock market falls last 12 months, I lost $17,000 with the recent falls its looking just as bad this year.
Welfare will not help you out with morgage but will with rent and if your wife has any income at all forget any dole at all , there are also limits to the amount of cash you have before you get any walfare.
The rule thumb is best to have nothing to get something , and its means a piss poor lifestyle for most on it.Best of Luck

willywh3r3

So, this means every salary survey published contains this amount inclusive? For example, the salary survey advertise for job position A, annual salary $90K. This means that 9% of $90K must go to Super? Or the 9% is on top of that $90K?

Now, how about the 'employer can match' my super fund. Does it mean if I contribute 9% of my salary, they will add another 9% to it. Assuming that the 9% is part of the $90K salary, my actual income would be $90K + 9% from employer match?

How about the 48% return to government? to charity?

Thank you for your information.
Wil

willywh3r3

I assume that you can use your super to invest? Am I right?
But you can always leave the super fund alone, right?

I am confused here, especially with 'to have nothing to get something'. If you are old/retire and has no job but you have your own roof. Does it mean you are to force to sell your house to support yourself? And you cannot get the superannuation fund disbursed to you?

When can you withdraw the super annuation fund? and by how much monthly? Any interest accumulated to the fund when we leave it alone?

Thanks and Regards,
Wil

stay or go ?

1) when applying for jobs, make sure you qualify with the employer that it is $xk PACKAGE (inclusive of super), or $xK + super. Many expats get caught out by that. Normally, most salaries quoted are PACKAGE (i.e deduct 9% and divide remainder by 12 to get pre-tax monthly income).

2) employer contribution is NOT MANDATORY. If they chose to do it then they can define the amount and how long for. DONT think that EVERY EMPLOYER DOES IT. They are very much a minority, and i understand they get corporate tax breaks for doing it.

3) The other 48% goes back to the government in tax as if you had earnt it in salary. They dont like you leaving with much !

4) You CANNOT withdraw from your super fund until retirement age, UNLESS you are leaving the country FOR GOOD.

5) Means tested - if you have enough money / equity in something to live on if made redundant etc etc, you are denied access to government subsidies until such time as your own personal resource runs out.

pommie bastard

The 9% is ontop of your salary or could be included as part of package, my employer tops that up by 3% if I put 4% in also . so I get 12% from employer plus my 4% makes 16% into Super .

pommie bastard

If not retired yes they will expect you to sell home to support yourself.Over the age of 55 you would be expected to live on any Super you have if unemployed.
The Super will be paid out after retirement above age 55 or now in most cases 60 years old , you may take out most of it but will be taxed at going rate could be 48%(15% to 30% tax on all payments into Super)the way to to do it allocated pension .
Everything you own apart from your home is accounted for including cars everything in your home plus savings etc if this goes above limit there is no State Pension and the social will tell how long you can live on your means before they give you one.

pommie bastard

Agree with everything else but this they have changed the law you are not allowed to take it out enless you are over 55 years old and retired , I was enquiring about withdrawing mine when we leave.

stay or go ?

ahh...i think it might be because i am on a 457 Temp visa - when that expires, i can claim up to 52% of any super saved. but you are probably right, for those people with PR, they cant have it till they start pushing up daisies by the sounds of it !

Jaj

    >On Tue, 01 Oct 2002 04:51:07 +0000, willywh3r3 wrote:
    >Hi,
    >How do old people (with no income) live?

If you've no income and no assets you get some form of welfare
payment. But not much - just enough to stop you from starving.


    >Does Australia have pension
    >system.

It has an age pension, but that's means tested.


    >And how can young people contribute to their pension when
    >they are old.

Normally you contribute to a pension when you are young.
You make contributions to a scheme either through your employer or
privately.


    >Any help would be appreciated


http://www.centrelink.gov.au


Jeremy

Alan Collett

Re point 2: employers are effectively compelled to pay super contributions at (from 01/07/2002) 9% of gross "salary" under the Superannuation Guarantee. On what basis do you make this comment?

Best regards.

stay or go ?

on the basis that i actually mean Voluntary Contributions (over and above the govt mandated 9%). sorry if i wasnt clear enough.