When Australian pensioner Frank Kemmler saw his lotto numbers come up, he thought he'd hit the jackpot. A $60,000 win seemed like a dream come true, a chance to finally enjoy some financial freedom.

But his joy was short-lived when he discovered the harsh reality of his newfound wealth: his pension would be taken away. Now, Frank is on a mission to warn other pensioners about the potential pitfalls of playing the lottery.

'I'm just trying to stop other people falling into the same trap,' he told a news source.

'If I'd known then what I know now, I would've given the win to my daughter and kept the pension for myself…So much for being lucky,' he added.

Lottery winner loses his pension due to Centrelink rules. Image: Pexels

The moment Frank realised he'd won the lottery was one of pure elation. He immediately told his family to pack their bags for a well-deserved holiday.

'It was certainly a nice feeling when I checked my numbers,' he said.

However, Frank soon learned that his winnings would be paid out in $5,000 monthly instalments.

This meant that Centrelink would consider his win as an income.

As a result, Frank lost his pension and the benefits that came with it, including subsidised GP appointments and medication.

The unexpected loss of his pension benefits meant that Frank's lottery win was more of a curse than a blessing. 'You think you win on the one end, but they take it away with the other hand,' he said.

Frank's experience highlighted a common misconception about lottery winnings: The belief that such a windfall comes with no strings attached. 'That’s what everybody thinks,' he said.

However, the reality is that lottery winnings could have significant implications, especially for pensioners.

Frank's winnings have now been exhausted, but he's still feeling the impact of his win. Centrelink has informed him that it could take up to six months for his pension reapplication to be approved.

'These people that are buying these [lottery] tickets, there's no warning anywhere…to say that you're going to lose your pension,' he said.

Understanding the Implications of Lottery Winnings for Pensioners

Centrelink assesses a person's income and assets to determine their eligibility for a pension. If a person's income or assets exceed certain thresholds, their pension may be reduced or cancelled.

Losing the pension can mean having to pay full price for essentials like doctor appointments and medication, which can be a significant financial burden.

So, before you buy that next lottery ticket, make sure you understand the potential implications of a win. It could save you a lot of heartache in the long run.

Key Takeaways

• Aussie pensioner Frank Kemmler won $60,000 in the lotto but warns other pensioners of the potential consequences for their pension.
• Frank faced a 'rude awakening' as his lotto winnings, paid in monthly instalments, were deemed income by Centrelink, resulting in the loss of his pension and associated benefits.
• The win has caused Frank to pay full price for healthcare necessities, negating the financial benefits of the prize.
• Frank's story is a cautionary tale for pensioners, highlighting the lack of warning about the impact of lottery wins on government pensions.

What are your thoughts on this, members? Have you ever considered the implications of a lottery win on your pension? Share your thoughts in the comments below.

 

[Mina vriesekolk]

I do not gamble , no lotto , scratchies or whatever they try to sell you , so I cannot win , but I cannot lose either .
Just about everyone talks about what to do when they win the lottery.
The winner could have spend it straight away and go on a cruise for a year or so , your money will be quickly gone that way .
Or if you are a home owner you could do some renovations if needed .

 

[darrellh]

I always thought lotto winnings was tax free (which still is I think) but I never would have thought for one moment it could impact our pensions, that’s a scary thought especially when it’s not such a significant amount, I mean you couldn’t live the rest of your life on $60,000 that amount some people spend in a space of 6 months, and for a pension to win that much, wow it’d be like all our Christmas’s had come at once. I so feel for this gentleman, but I’m also grateful he’s told us his story, now we know if we ever win the lottery we put it in our kids bank accounts

That could have implications you have not even thought about and tear families apart. Tread carefully but first win the money!

 

[bid13]

When Australian pensioner Frank Kemmler saw his lotto numbers come up, he thought he'd hit the jackpot. A $60,000 win seemed like a dream come true, a chance to finally enjoy some financial freedom.

But his joy was short-lived when he discovered the harsh reality of his newfound wealth: his pension would be taken away. Now, Frank is on a mission to warn other pensioners about the potential pitfalls of playing the lottery.

'I'm just trying to stop other people falling into the same trap,' he told a news source.

'If I'd known then what I know now, I would've given the win to my daughter and kept the pension for myself…So much for being lucky,' he added.

View attachment 38469

Lottery winner loses his pension due to Centrelink rules. Image: Pexels

The moment Frank realised he'd won the lottery was one of pure elation. He immediately told his family to pack their bags for a well-deserved holiday.

'It was certainly a nice feeling when I checked my numbers,' he said.

However, Frank soon learned that his winnings would be paid out in $5,000 monthly instalments.

This meant that Centrelink would consider his win as an income.

As a result, Frank lost his pension and the benefits that came with it, including subsidised GP appointments and medication.

The unexpected loss of his pension benefits meant that Frank's lottery win was more of a curse than a blessing. 'You think you win on the one end, but they take it away with the other hand,' he said.

Frank's experience highlighted a common misconception about lottery winnings: The belief that such a windfall comes with no strings attached. 'That’s what everybody thinks,' he said.

However, the reality is that lottery winnings could have significant implications, especially for pensioners.

Frank's winnings have now been exhausted, but he's still feeling the impact of his win. Centrelink has informed him that it could take up to six months for his pension reapplication to be approved.

'These people that are buying these [lottery] tickets, there's no warning anywhere…to say that you're going to lose your pension,' he said.

Understanding the Implications of Lottery Winnings for Pensioners

Centrelink assesses a person's income and assets to determine their eligibility for a pension. If a person's income or assets exceed certain thresholds, their pension may be reduced or cancelled.

Losing the pension can mean having to pay full price for essentials like doctor appointments and medication, which can be a significant financial burden.

So, before you buy that next lottery ticket, make sure you understand the potential implications of a win. It could save you a lot of heartache in the long run.

Key Takeaways

• Aussie pensioner Frank Kemmler won $60,000 in the lotto but warns other pensioners of the potential consequences for their pension.
• Frank faced a 'rude awakening' as his lotto winnings, paid in monthly instalments, were deemed income by Centrelink, resulting in the loss of his pension and associated benefits.
• The win has caused Frank to pay full price for healthcare necessities, negating the financial benefits of the prize.
• Frank's story is a cautionary tale for pensioners, highlighting the lack of warning about the impact of lottery wins on government pensions.

What are your thoughts on this, members? Have you ever considered the implications of a lottery win on your pension? Share your thoughts in the comments below.

 

[bid13]

There was a story on A Current Affair not long ago when a pensioner won the set for life lotto and Centrelink cut his pension as it was paid as $20,000 per month as was looked at as an income. If it was a one off payment it wouldn’t effect his pension as long as he wasn’t over the allowed amount of savings to qualify for the pension.

 

[NickyW]

Yes I did think of this, you learn that Centrelink giveth and Centrelink taketh away. The fact that you are on a pension shows that any extra goes toward things you couldn’t afford earlier, maybe house maintenance, even giving as a gift to children, has penalties. If you are going to win anything better be millions not thousands, Just awful for this man whose first thought was a gift to family.

Reread the article. He only said he would have passed the money to his daughter so as to keep the pension.

 

[Colette 3799]

I don't know how this would be counted as income . Each month the $5000 is winning money not income
If you are a home owner then you can have $400,000 or non home owners can have $600,000 in the bank .

I would ask for a review unless he has money in the bank then this would change everything

I read a while ago that the Set for Life that gives $20,000 a month was classed as income but not regular lotto wins. I wonder if he had put the win into his super instead of the bank would his pension be affected still?

 

[Veggiepatch]

What's going on here! It's not the United States of Arrogance! Lottery wins, quiz show "earnings", pokie jackpots and horse racing dividends are NOT considered income in Australia unless something has changed recently.

What a crock of shit!

 

[Tony@51]

When Australian pensioner Frank Kemmler saw his lotto numbers come up, he thought he'd hit the jackpot. A $60,000 win seemed like a dream come true, a chance to finally enjoy some financial freedom.

But his joy was short-lived when he discovered the harsh reality of his newfound wealth: his pension would be taken away. Now, Frank is on a mission to warn other pensioners about the potential pitfalls of playing the lottery.

'I'm just trying to stop other people falling into the same trap,' he told a news source.

'If I'd known then what I know now, I would've given the win to my daughter and kept the pension for myself…So much for being lucky,' he added.

View attachment 38469

Lottery winner loses his pension due to Centrelink rules. Image: Pexels

The moment Frank realised he'd won the lottery was one of pure elation. He immediately told his family to pack their bags for a well-deserved holiday.

'It was certainly a nice feeling when I checked my numbers,' he said.

However, Frank soon learned that his winnings would be paid out in $5,000 monthly instalments.

This meant that Centrelink would consider his win as an income.

As a result, Frank lost his pension and the benefits that came with it, including subsidised GP appointments and medication.

The unexpected loss of his pension benefits meant that Frank's lottery win was more of a curse than a blessing. 'You think you win on the one end, but they take it away with the other hand,' he said.

Frank's experience highlighted a common misconception about lottery winnings: The belief that such a windfall comes with no strings attached. 'That’s what everybody thinks,' he said.

However, the reality is that lottery winnings could have significant implications, especially for pensioners.

Frank's winnings have now been exhausted, but he's still feeling the impact of his win. Centrelink has informed him that it could take up to six months for his pension reapplication to be approved.

'These people that are buying these [lottery] tickets, there's no warning anywhere…to say that you're going to lose your pension,' he said.

Understanding the Implications of Lottery Winnings for Pensioners

Centrelink assesses a person's income and assets to determine their eligibility for a pension. If a person's income or assets exceed certain thresholds, their pension may be reduced or cancelled.

Losing the pension can mean having to pay full price for essentials like doctor appointments and medication, which can be a significant financial burden.

So, before you buy that next lottery ticket, make sure you understand the potential implications of a win. It could save you a lot of heartache in the long run.

Key Takeaways

• Aussie pensioner Frank Kemmler won $60,000 in the lotto but warns other pensioners of the potential consequences for their pension.
• Frank faced a 'rude awakening' as his lotto winnings, paid in monthly instalments, were deemed income by Centrelink, resulting in the loss of his pension and associated benefits.
• The win has caused Frank to pay full price for healthcare necessities, negating the financial benefits of the prize.
• Frank's story is a cautionary tale for pensioners, highlighting the lack of warning about the impact of lottery wins on government pensions.

What are your thoughts on this, members? Have you ever considered the implications of a lottery win on your pension? Share your thoughts in the comments below.

If it was a ticket purchased at a lotto shop that does not have your name attached then you could give the ticket away to anyone that you trusted to return to you by way of gift in one years time without losing pension if you are not over the threshold

 

[Barbara V]

Another recycled artical

 

[Knell]

What's going on here! It's not the United States of Arrogance! Lottery wins, quiz show "earnings", pokie jackpots and horse racing dividends are NOT considered income in Australia unless something has changed recently.

What a crock of shit!

I think the 'set for life' monthly wins are deemed income as far as Services Aust are concerned. The only one I think.

 

[Veggiepatch]

ATO: "You won $500 at bingo yesterday. That is taxable at 50 cents in the dollar...."

 

[darrellh]

Yu

I think the 'set for life' monthly wins are deemed income as far as Services Aust are concerned. The only one I think.

You are right and the recipient is still far better off than he or she was before they had the win. Perspective is needed here! Some people are never happy and others would give anything to be in the same position and have that extra money to take the pressure off everyday cost of living etc

 

[Ezzy]

The windfall is possibly TAX FREE TO A NON PENSIONER WHO IS WORKING & DOES NOT RECEIVE THE PENSION.

There appears to be more to the story than we are hearing, l believe. Does he have other property which generate income such as rentals? If he is a single pensioner (not stated), he would receive less than approx $1,000 / month & even paying for medications & paying for a visit to the Doctor he must still have at least $3,000 / month in hand. WHAT HAS HE DONE WITH APPROX $36,000 IN 12 MONTHS? I smell a rat!

 

[Veggiepatch]

The windfall is possibly TAX FREE TO A NON PENSIONER WHO IS WORKING & DOES NOT RECEIVE THE PENSION.

There appears to be more to the story than we are hearing, l believe. Does he have other property which generate income such as rentals? If he is a single pensioner (not stated), he would receive less than approx $1,000 / month & even paying for medications & paying for a visit to the Doctor he must still have at least $3,000 / month in hand. WHAT HAS HE DONE WITH APPROX $36,000 IN 12 MONTHS? I smell a rat!

I smell a capybara (sp?). The world's largest rodent.

 

[Knell]

Yu

You are right and the recipient is still far better off than he or she was before they had the win. Perspective is needed here! Some people are never happy and others would give anything to be in the same position and have that extra money to take the pressure off everyday cost of living etc

For sure! First World Problem!

 

[Nichola]

He was only getting it for 12 months if you splurged it you’d be back to zilch one year on and spend months trying to get your pension back ! I won’t be doing set for life or any lotto. At 76 I only ever won $50 in my life !

I won a crazy $9 in Tattslotto back in 1974!

 

[Macarj]

I don’t think we’re hearing the full story here there must be more to it.

No it is just that they count it as income

 

[bid13]

Reread the article. He only said he would have passed the money to his daughter so as to keep the pension.

If that was the case why didn’t he register the ticket in his daughter’s name

 

[Januvia1952]

When Australian pensioner Frank Kemmler saw his lotto numbers come up, he thought he'd hit the jackpot. A $60,000 win seemed like a dream come true, a chance to finally enjoy some financial freedom.

But his joy was short-lived when he discovered the harsh reality of his newfound wealth: his pension would be taken away. Now, Frank is on a mission to warn other pensioners about the potential pitfalls of playing the lottery.

'I'm just trying to stop other people falling into the same trap,' he told a news source.

'If I'd known then what I know now, I would've given the win to my daughter and kept the pension for myself…So much for being lucky,' he added.

View attachment 38469

Lottery winner loses his pension due to Centrelink rules. Image: Pexels

The moment Frank realised he'd won the lottery was one of pure elation. He immediately told his family to pack their bags for a well-deserved holiday.

'It was certainly a nice feeling when I checked my numbers,' he said.

However, Frank soon learned that his winnings would be paid out in $5,000 monthly instalments.

This meant that Centrelink would consider his win as an income.

As a result, Frank lost his pension and the benefits that came with it, including subsidised GP appointments and medication.

The unexpected loss of his pension benefits meant that Frank's lottery win was more of a curse than a blessing. 'You think you win on the one end, but they take it away with the other hand,' he said.

Frank's experience highlighted a common misconception about lottery winnings: The belief that such a windfall comes with no strings attached. 'That’s what everybody thinks,' he said.

However, the reality is that lottery winnings could have significant implications, especially for pensioners.

Frank's winnings have now been exhausted, but he's still feeling the impact of his win. Centrelink has informed him that it could take up to six months for his pension reapplication to be approved.

'These people that are buying these [lottery] tickets, there's no warning anywhere…to say that you're going to lose your pension,' he said.

Understanding the Implications of Lottery Winnings for Pensioners

Centrelink assesses a person's income and assets to determine their eligibility for a pension. If a person's income or assets exceed certain thresholds, their pension may be reduced or cancelled.

Losing the pension can mean having to pay full price for essentials like doctor appointments and medication, which can be a significant financial burden.

So, before you buy that next lottery ticket, make sure you understand the potential implications of a win. It could save you a lot of heartache in the long run.

Key Takeaways

• Aussie pensioner Frank Kemmler won $60,000 in the lotto but warns other pensioners of the potential consequences for their pension.
• Frank faced a 'rude awakening' as his lotto winnings, paid in monthly instalments, were deemed income by Centrelink, resulting in the loss of his pension and associated benefits.
• The win has caused Frank to pay full price for healthcare necessities, negating the financial benefits of the prize.
• Frank's story is a cautionary tale for pensioners, highlighting the lack of warning about the impact of lottery wins on government pensions.

What are your thoughts on this, members? Have you ever considered the implications of a lottery win on your pension? Share your thoughts in the comments below.

I won’t buy Set for Life. I win I loose my pension. But normal Lotto and win . I keep my pension. Makes no sense?

 

[Knell]

I believe his pension has now been reinstated.