Smart Retirement - Take 3

Well this option is hardly what you would call smart but I am just informed at a Forum that it is a favourite of "certain" Financial Planners, who have done a Cloud Atlas type deal with the kids to do a "dash for the cash".

The option is for the Pensioner to DrawDown ZERO and just let Super accumulate (ie not take out an ABP that insists on a Min DrawDown).

So after 20 years there is well over $1 million in Super to be divided up between Financial Planner and kids, but the trouble is that the Age Pension is reduced to just 26.43% of the Full amount over 20 years, AND it is all up front ie reducing to half at age 70 and cutting out totally at 75 (ie no income and no health care).

The Pensioner would have an average of about $6,000 pa on which to "live" so would need to do without things like heating and food, so really this "eugenics" or culling is right up the alley of Tony Abbott's Final Solution as Health Minister to this Age Pension problem in 2005 (see below).  So he would probably die off at about 72 with about $400,000 loot to divide up.

It's NOT a plan we would suggest to a Pensioner but those are the maths involved.

TONY ABBOTT: "If you are to see on the front page of the newspaper headlines such as: "50,000 dead", or "50,000 to die", obviously people are going to start thinking the worst. On the other hand, if you work out that that translates to something like a one in 500 risk of succumbing to a flu pandemic, I think you are able to put it into a different kind of perspective."