A widower who won $60,000 AUS ($40,890 USD) in the lotto had his pension cut off as the winnings were considered income, highlighting the dark side of winning a fortune.
Frank Kemmler, a 70-year-old man from Adelaide, Australia, informed his family that they were all going on an exciting holiday after news came that he had just scored the lottery luck, earning thousands of Australian dollars.
“It was certainly a nice feeling when I checked me numbers,” he told A Current Affair on Friday (December 29). The widower added: “I rang the family. I said, ‘pack up, we’re going on a holiday!’”
Frank Kemmler, a 70-year-old widower from Australia, had his pension cut off after winning $60,000 AUS in the lotto because the prize was considered income
Image credits: A Current Affair
Image credits: A Current Affair
But the joy of finally having some significant financial relief collapsed like a house of cards after a visit to the local Centrelink, the Australian authority in charge of delivering social security payments.
There, Frank was told access to his pension would be cut as his lotto winnings, paid out every month, were considered a form of income, the New York Post reported.
Frank tried to convey to the authorities that he was willing to take his prize as a lump sum, but he wasn’t given the option
Image credits: Erik Mclean
The disappointed man recalled: “[It] was a bit of a disillusionment. You think you win on the one hand, but they take it away with the other hand.
“It was so unexpected, it took me a couple of days to realize I had just been cut off for no reason at all. So much for being lucky.”
Frank tried to convey to the authorities that he was willing to take his prize as a lump sum, but he wasn’t given the option.
Image credits: dylan nolte
As a result, the defeated man was left to reportedly pay full price for doctor appointments and medication which were previously covered under his pension. His monthly payments have also reportedly now dried up.
As per the publication, upon reapplying to receive the pension on December 1, Frank was informed that “they were so busy” and that he could wait for up to six months to receive the benefits.
He deplored: “Anybody would think I grew younger; I grew a year older, not a year younger.”
Frank went on to warn other Australians about the pension and to be careful if they’re lucky enough to win the lotto as they too could have their benefits cut.
The defeated man was left to reportedly pay full price for doctor appointments and medication which were previously covered under his pension
Image credits: Waldemar
He urged: “The pension is not really my main worry, because I’m just trying to stop other people from falling into the same trap.
“These people that are buying these [lottery] tickets, there’s no warning anywhere … to say that you’re going to lose your pension.
“If I’d known then what I know now, I would’ve given the win to my daughter and kept the pension for myself.”
A spokesperson from Services Australia told News.com.au they “extended an offer to work directly with Mr. Kemmler to ensure he’s getting the support he is eligible for”.