Elderly couple's pension predicament sparks heated debate
An elderly couple have sparked a heated debate online after enquiring how they can hold on to their pension payments despite their increasing wealth.
The couple are in their 90s and receive a part-age pension payment, while also owning a share portfolio worth around $895,000.
In a question to Sydney Morning Herald money columnist, Noel Whittaker, the couple’s child asked: “With the market going up as it has, they are worried that they will lose their pension and the benefits. Is there anything that they can do so they don’t lose the pension?”
You must be 67 years or older to be eligible for the pension in Australia, with the maximum fortnightly payment for a single person is $1,144.40 and $1,725.20 for a couple.
However, the pension amount is reduced by 50 cents for every dollar over $212 a person receives in income per fortnight.
A couple who are homeowners on a full pension can have $470,000 in combined assets before their pensions are impacted, while a couple who are homeowners on a part pension can have $1,045,500 in assets before their payments are cancelled.
Whittaker recommended for the couple to get their furniture valued at “garage sale prices”, rather than replacement prices to keep their assets below the threshold.
He also suggested renovating their home, prepaying for their funerals, or making a gift of $10,000.
“If they gave a bigger sum of money to the children now, their pension would not be reduced as it would be held as a deprived asset for five years but would not increase in value,” the columnist suggested.
The article was quickly posted online, and the couple were met with fierce backlash as one person wrote on X, "Why are 90yo millionaires worried about losing a welfare payment?” while another person joked, “If I go to work and earn money how can I do it and still keep my Centrelink payments please inform me!”
Many branded the couple “greedy”, claiming they had more than enough to live on for the rest of their retirement, with one person writing, “Firstly, stop being so greedy. Secondly, live off your money. Ffs.”
“I read that this morning, and was shocked at how greedy some people are. $900,000 is more than enough for anyone to live off during their retirement years,” another said.
Others suspected it was the child who was concerned, rather than the parents, commenting, “It sounds like it’s the kids worrying they might have to spend their inheritance.”
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