Jayla, I started my savings with my first job and just trained myself to live modestly. That's why I believe an all-inclusive (retirement security) savings rule built into our taxation system (as initiated through the NZ Super Fund) is so important for our future prosperity as a nation.
Its allocation to Personal Accounts would in time lead us all to recognise and appreciate the value of us all pulling in the same direction, instead of against each other for a bigger share of the goodies at someone else's expense.

You are right. What an ideal world it would be.
The Government are trying to get people thinking this way with certain savings schemes in place.

Has anyone mentioned or asked if the retirement age will be increased by Labour or National after the election. For widows this could be a devasting kick in the teeth. The pittance afforded widows is a disgrace especially if one is unable to work through disability or small children. Unless trained for well paid work the options are not viable. Yet solo mothers are to be put to work or training, whichever of the party's is elected. There are women in the USA still working in their 70s to pay their mortgages. We think we are hard done by but unless you have Insurance for just about everything you are at the bottom of the heap over there. An Act of God clause is not in USA insurance policies so, you need to covered for all threats.

Joybel - there is no party that is going to raise the retirement age at present, nor even in 10 years. But National under Don Brash is on record as believing it inevitable at some time in the future - and even the Retirement Commissioner has warned against that possibility.
The NZ Super Fund is suppposed to see us over the Baby Boomer Bulge - and that should be of great concern to all young taxpayers today. They (and we all) have to contribute towards BabyBoomer retirement security, with nothing in place for THEIR children!
That's why all concerned people should urge allocation of the NZSF to Personal Accounts as a permanent institution, to safeguard our NZ Super eligibility at age 65, because then all NZ Super will be at least partly pre -funded, as it will be for BabyBoomers from the 2020s onward.
(And we all will benefit from having the system beginning to work NOW, instead of in the 2020s.)

Is it correct that the Living Alone Supplement is not income tested?

Hello Chickiwi,
Yes that is correct. The living alone allowance is an addition for that which you pay exactly the same for, whether you are single or married, such as phone, power, rates etc.
The rate for a married Couple is 66% of the average working mans wage and you would receive a little extra to help pay these costs so it is part of your payment and not means tested nor additionally taxed.

Thanks muchly, Jayla, for your helpful answer.
Cheers

Hi Chickiwi,
I forgot to say that you get half of that 66%, that is 33% plus the living alone allowance.
So the actual fact is that every Superannuitant receives "33% of the average working mans wage".
The governments in power very neatly forget to state this fact when they are speaking and it makes it sound like they are paying us heaps, when in fact they are not.

Goodness, those statistics make scary reading....Back to the calculator.

Duh! Never thought of that before, thank you Jayla for clarifying that!

Cheers CB

Post deleted at 19 Oct 2008 3:18pm by GrownUps Administrator

Looks like just another scam, we're not all stupid.
Cb