[Brad Lockyer]

A pensioner couple writing in to finance guru Noel Whittaker in the Sydney Morning Herald have caused a bit of a stir this week, and accusations the older generation is greedy.

The couple, aged 73 and 67, were Age Pension recipients who won $1 million in a lottery. Good news, right? Well, not for them, as they were complaining to Noel that their windfall meant they had been cutoff from the pension. They were bemoaning this fact, and asking if there was anything they could have done differently to avoid losing their pension.

Mr Whittaker rightly points out that winning $1 million makes them extremely fortunate, and puts them in a better financial position than receiving the Age Pension.

The article was accompanied by more than 100 comments, most of which were berating the couple for being greedy. But other were pointing claiming the couple had earned the pension by “paying taxes all their life”.

What do you think? Does paying taxes your whole life mean your entitled to a pension regardless of how much you have? Is that a sustainable model?

[Lillybet]

The English model is fair. All older people attaining pension age, get exactly the same pension – no ifs or buts.
I understand there are other countries who also use this model.
It’s a simple system which required less manpower to administer and recognises that all people are equal. After all, why should someone who has worked and paid taxes their whole life, be denied.
The English model is fair for all and much, much, easier and less expensive to administer.
It comes without the need for ongoing, complex and confusing paperwork, which sometimes is far too difficult for the elderly to navigate. Not all people can afford to engage a financial planner or even an accountant to help.

[Mocha]

I do think this couple sound greedy, as they can get help to generate an income higher than the pension. The only thing is they will lose their health care card, and as we all know medication isn’t cheap. There has to be a more effective pension system then there is now, it is very divisive with who is eligible for whatever subsidies there are, as not all SFR’s are rolling in money – even if the young people think Boomers are all extremely wealthy. I’d be very happy if I had won that million dollars.

[Author]

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