Pensioners to lose out in budget

The superannuation crisis is starting to hit hard with as many as over 40,000 Australian retirees being forced back into work, writes Frances Adcock.

The economic downturn has hit Australia’s aging hard – with this community, which holds 40 per cent of the vote, expected to have questions to ask come budget time.

Formerly retired dentist Colin Rendell has had to go back to work, after severe drops in the value of his self-managed superannuation.

“We were expecting it but most of my superannuation money is self managed superannuation fund which is Australian Equity which has fallen considerably,” he says.

Norm Sinclair is a Financial Planner at Whytes wealth creation and says if retirees assets are sustainable then really there is no need to go back to work.

He also says Superannuation Tax is a better way to go than other forms of investment.

Shadow Minister for Financial Services, Superannuation and Corporate Law Chris Pearce believes the proposed budget changes will bring uncertainty to the community.

“Australians have seen their superannuation nest-eggs decline in recent times, that has concerned them greatly, and now we have the government speculating about potential changes to law, in and around superannuation which i think will see a great concern around the community,” he says.

“The superannuation tax rules are still very attractive compared to any other investment – you will get a better result out of a superannuation pension whether than most other investments.”

He expects transitional pensions, which were introduced by the Howard government, will be first to go come budget time.

Closer to budget time, Colin believes government overspending and handouts are not the way to go.

“I don’t agree with handouts the way they have been doing them.

“I think they should not be overspending, but by the same token there should be some stimulus to make sure our banks are secure, so there are no crashes like there has been elsewhere,” he says.