Credit Card Pensioner
Hi Scott,
I am retired and have a superannuation balance of around $126,000 from which I draw down a monthly pension of $1,925. I also have a current credit debt of around $4,500 which is being paid off at approximately $150 per month. Should I withdraw a lump sum from my super to pay off the credit card?
Colin
Hi Colin,
It’s time to wake up and smell the coffee, cobber.
You’ve got a spending problem.
All up you’re after-tax income of $45,800 (combining your monthly amount with the age pension of $22,700), should be more than enough to fund a comfortable lifestyle, according to ASFA (Association of Super Funds Australia), who track these things.
Yet you’re spending more than that.
You can keep this up for about six years -- that’s how long I think your super will last, based on your current drawdown rate. Then it’s baked beans for breakfast, lunch and tea.
It’s time to start acting your age. Withdraw the lump sum, pay off the credit card, cut the damn thing up, and start living within your means.
Scott