With limited superannuation, Ross has been living on JobSeeker payments, which are lower than the pension, for the last four years and struggling to survive.<\/p>\n
Ross’s story sparked a wave of comments from other Australians with similar experiences.<\/p>\n
Call for manual labourers to access pension earlier<\/a><\/p>\n There are calls for the age pension to kick in sooner for manual labourers who are physically struggling to work until retirement age.<\/p>\n “I still have eight years of work left and I think I will die with my boots on,”<\/p><\/blockquote>\n Laurie said.<\/p>\n “I will not make it to retirement and get to enjoy life as I should \u2014 if I don’t have my health then what is the use.”\u00a0<\/p>\n “We are working ourselves to the grave,” Matt said.<\/p>\n Nurses and disability support workers also told the ABC of the toll on their bodies from years of working in physically demanding jobs.<\/p>\n “My body is stuffed I have chronic back issues, shoulder and neck issues,”<\/p><\/blockquote>\n Karen said.<\/p>\n “The stress and anxiety from chronic and relentless pain is compounded by overwhelming financial pressures, so it’s terrifying,” Barb said.<\/p>\n Financial coach Karen Eley said it was a serious issue for Australia’s aging population.<\/p>\n “It’s disappointing the government hasn’t considered the unintended consequences of increasing the age pension for hard-working Australians,” Ms Eley said.<\/p>\n Karen Eley is a money coach who runs Women Talking Finance. (Supplied: Karen Eley)<\/p>\n So, what are the options for those who want, or need, to retire early?<\/p>\n It will depend on whether you’re relying on the age pension or superannuation for income.<\/p>\n This article contains general information only. You should consider obtaining independent professional advice in relation to your particular circumstances.<\/p>\n When can I access my super?<\/p>\n You can access your super when you reach 65 years old, even if you’re still working and haven’t retired.<\/p>\n But you can also access your super earlier if you’ve reached your preservation age and satisfy the work\/retirement criteria.<\/p>\n Preservation age is between 55 and 60 years old, but it depends on the year you were born.<\/p>\n For Australians born after July 1, 1964, the preservation age is 60.<\/p>\n Once you have reached your preservation age, you can either fully retire or start a transition to a retirement income stream while continuing to work.<\/p>\n That means you may be able to reduce your working hours without reducing your income when you reach your preservation age.<\/p>\n Your part-time working income may be supplemented with your super savings as a transition<\/a> to a retirement income stream.<\/p>\n When can I access the pension?<\/p>\n You can get the age pension from the age of 67 if you are living in Australia and have been an Australian resident for the last 10 years.<\/p>\n But you have to meet an income and asset test.<\/p>\n To get a full pension there are limits on the value of the assets you can have.<\/p>\n The government includes most real estate assets you own in your assets test.<\/p>\n But this generally doesn’t include your principal home and up to the first 2 hectares of land it’s on.<\/p>\n Assets also include income streams and superannuation pensions<\/a>.<\/p>\n The asset limits for a full pension:<\/p>\n And, the asset limits for a part pension are as follows:<\/p>\n The normal rates of the age pension before tax is:<\/p>\n What if I’m not that old but can’t work anymore?<\/p>\n You can access your super early but under limited circumstances<\/a>.<\/p>\n These include:<\/p>\n Your fund must be satisfied that you have a permanent physical or mental medical condition that is likely to stop you from ever working again in a job you were qualified to do.<\/p>\n Do you know more? Contact Fiona Blackwood at blackwood.fiona@abc.net.au<\/a>.<\/p>\n You may also be able to access any income protection insurance you hold within your funds.<\/p>\n A lump sum is generally limited to $10,000.\u00a0<\/p>\n There may be tax consequences to early withdrawals depending on your age.<\/p>\n Are there any other alternatives to help me retire? A reverse mortgage allows you to borrow money using the equity in your home as security. (ABC News: Brendan Esposito)<\/p>\n Financial coach Karen Eley says while it is not ideal, people who own their own homes can use a reverse mortgage to access funds.<\/p>\n “This lending facility allows you to borrow money against your home, without requiring repayment until you pass away or sell the property,” she said.<\/p>\n She said it’s important to get independent advice to make sure you understand what you’re signing up for “as essentially you are creating a debt against your home that will need to be repaid in the future.”<\/p>\n “It can however provide financial assistance in the form of accessing the equity in your home if you have a mortgage-free property.”<\/p><\/blockquote>\n<\/p>\n
Your situation<\/strong>Homeowner<\/strong>Non-homeowner<\/strong><\/tr>\n \n Single<\/td>\n $321,500<\/td>\n $579,500<\/td>\n<\/tr>\n \n A couple, combined<\/td>\n $481,500<\/td>\n $739,500<\/td>\n<\/tr>\n \n A couple, separated due to illness, combined<\/td>\n $481,500<\/td>\n $739,500<\/td>\n<\/tr>\n \n A couple, one partner eligible, combined<\/td>\n $481,500<\/td>\n $739,500<\/td>\n<\/tr>\n Your situation<\/strong>Homeowner<\/strong>Non-homeowner<\/strong><\/tr>\n \n Single<\/td>\n $704,500<\/td>\n $962,500<\/td>\n<\/tr>\n \n A couple, combined<\/td>\n $1,059,000<\/td>\n $1,317,000<\/td>\n<\/tr>\n \n A couple, separated due to illness, combined<\/td>\n $1,247,500<\/td>\n $1,505,500<\/td>\n<\/tr>\n \n A couple, one partner eligible, combined<\/td>\n $1,059,000<\/td>\n $1,317,000<\/td>\n<\/tr>\n Per fortnight<\/strong>Single<\/strong>Couple each<\/strong>Couple combined<\/strong>Couple apart due to ill health<\/strong><\/tr>\n \n Maximum basic rate<\/td>\n $1,051.30<\/td>\n $792.50<\/td>\n $1,585.00<\/td>\n $1,051.30<\/td>\n<\/tr>\n \n Maximum\u00a0Pension Supplement<\/a><\/td>\n $83.60<\/td>\n $63.00<\/td>\n $126.00<\/td>\n $83.60<\/td>\n<\/tr>\n \n Energy Supplement<\/a><\/td>\n $14.10<\/td>\n $10.60<\/td>\n $21.20<\/td>\n $14.10<\/td>\n<\/tr>\n \n Total<\/td>\n $1,149.00<\/td>\n $866.10<\/td>\n $1,732.20<\/td>\n $1,149.00<\/td>\n<\/tr>\n \n
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