do you get government help with your retirement

[forestdale]

where you live?

Here in australia we are supposed to put away some of our wages into superannuation, the goverment adds 15% (I think) to whatever you put away, theoretically you can't touch this until you retire. Dh and I came to this scheme late as it only came into play about 15 years ago.

We married late, lived in Europe and returned to Australia to start all over again when I was 32 and dh was 41. We bought our home and have that paid off. We sent our dks to private boarding schools as where we both worked in an outback town that had a terrible high school, primary school was ok. That cost a fortune - around $150,000. But we both saw that as an investment in our kids and didn't mind spending that money.

But now, with DH @ 64 this year and with no superannuation behind us, we are unsure about what we'll do. My guess is we'll sell the store for around $130,000 and our house is valued @ around $350,000. I think we'll be ok earning bits and pieces where we can, but this scares DH. He's always been a worrywort. If the worst comes to the worst, we could sell our home and move somewhere smaller.

DH feels embarrassed about going onto a pension. He's never claimed anything from the goverment before and he doesn't want to do it now. My argument is that we've paid 39% income tax most of our working lives, we have private health insurance - so we've never cost the government anything in health care, we sent our kids to private high school so we only used governemtn school for their primary education. We've paid for everything else ourselves so I have no problem with claiming a pension now. I hope DH can get used to being dependent at some point, he can't work forever.

How do things work when you retire where you live? Is there government help with pensions and such?

[PrairieRose]

At present Bethany we have what's called social security. All of our lives when we earn a wage or make a living as a self employed person you pay about 7.65% of what you earn into social security and medicare. (I could look up the exact #'s if you want for the split but the overall number is right) The government then pays out a certain amount to a retiree when they reach retirement age and your medical expenses minus prescription drugs and a few other smaller things are covered by medicare. Most people carry a "gap" insurance for the difference. BUT here's the thing.....our government has been mismanaging this fund (social security) and robbing the money out of for years and now that the largest generation in history is getting ready to retire...the system will be bankrupt in about 10 years or so. Sssooooooo even though we've always paid into it, it's not going to be there for us baby boomers. We're trying hard to provide for our own retirement and hoping against hope that we can figure out a way to save social security b/c there are so many that can't make it without it. It's really sad here, considering how much has gone into it. Really sad.
I would feel like you do about the pension plan Bethany. I understand your dh's take on it as well but still........ .

[Julia Kimber]

As I'm in Perth, Oz, Bethany we have the same as you of course!
Julia

[forestdale]

Lisa, it's sad to hear your governments have taken that money. I hope they work out some way of helping all the citizens there when they truly need help the most.

Julia, from what I read I believe your pension just transfers from the UK to here, is that right?

[Julia Kimber]

Originally posted by forestdale
Lisa, it's sad to hear your governments have taken that money. I hope they work out some way of helping all the citizens there when they truly need help the most.

Julia, from what I read I believe your pension just transfers from the UK to here, is that right?

I believe you have to apply for it Bethany but that's not paid out until you're 65.

By the way, wherabouts in Oz are you?
Julia

[forestdale]

Julia, I live at Landsborough in the Sunshine Coast hinterland. I'm in the lowlands of the mountains and 20 minutes from the beach.

[Shell]

Our government in Canada also pays a pension as well but there is talk that there will be none left by the time I am ready to collect.

We also have RRSP's (Reg. retirement savings plan) I have been putting in money every month since I was 18. The government doesn't contribute but we don't get taxed on that money so it grows much quicker.

The government will help contribute to an education fund which we have also set up for our daughter Madison.

[homesteadmamma]

As Shell said, there is a pension the government pays you called Old Age Pension. You get that at 65, BUT it is clawed back if you have other pensions or income of any sort. You also have to pay taxes on this pension, as well as the Canada Pension. They are both classified as income.

At age 65 you also get Canada Pension, which you have to pay into if you are employed. You can take that out at age 60 but the amount you get is a bit smaller.

Shell is right. There is talk that the Canada Pension won't be around or at least won't be the amount one gets now when they retire.

With the RRSP's, you don't pay tax until you take the money out. All RRSP's must be cashed in by the time you are 69. You are also only allowed to put in a specific amount each year. Each year when you get your tax returns, they tell you the amount you are allowed to put in. It is a great way to save, but you need to really watch when you take them out. You get hit BIG TIME in taxes. (Ask me how I know.)

[Julia Kimber]

Originally posted by forestdale
Julia, I live at Landsborough in the Sunshine Coast hinterland. I'm in the lowlands of the mountains and 20 minutes from the beach.

Sounds lovely Bethany! Are you originally from this country?


Julia

[forestdale]

I certainly am Julia. Some of my ancestors came here on the second fleet - 1790. We are mostly Irish but I have one Swedish Granny.

[Julia Kimber]

Thanks Bethany, a real true blue Aussie then!

Julia