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James Coyle
James has over 35 years experience in financial services with particular expertise in two of the key components of retirement finance - Superannuation and the Age Pension. He is passionate about providing the guidance and support that can help older Australians enjoy their best possible retirement. He lives in regional Victoria surrounded by dogs and chooks.
Tks staff good info and reminders of directions
Great info! Interested in comments re Super beneficiary item. Seems Govt gets >30% of remainder if a single doesn’t have a direct dependent to will it to, and leaves it to adult family members. Is that correct? So what’s a Reversionary beneficiary please?
Hi Brigitte, thank you for reaching out for help planning your retirement. For you and anyone else who would like to have a discussion with someone they can trust about retirement we do offer financial advice consultations.
Our financial advice consultations are designed to help you better understand your needs and goals in retirement and some of the actions you can consider to help you achieve those goals. The consultation is online, goes for up to 45 minutes and costs $150.
The discussion will:
* Provide you with the opportunity to ask questions to understand if you are on the right track.
* Help you feel reassured that you can plan the future you envisage.
* Have confidence in knowing that you have a clear understanding of the rules and impacts for you.
* Explore options available to you for your next steps.
As advised above we charge $150 (inc GST) for the 45 minute discussion, CLICK HERE to book now.
It’s worth mentioning that earnings on a normal (accumulation) Super account are taxed at 15% while earnings on an Account-based Pension account are tax-free.
In addition, you are not locked in to the Pension account – while there is a Govt minimum withdrawal amount there is no maximum. (But best to confirm with your Super fund).
Centrelink treat both accounts the same for the assets test and deemed income (although note they have a slightly confusing way of recording the Pension account on your records – it’s not recorded under the Super account section).
BTW, if someone is still working and has a normal (taxable) accumulation account, compulsory super will be paid into that, while the separate Pension account gives a tax-free return. There is also nothing stopping you from taking the minimum drawdown from the Pension account and paying it straight back in to the accumulation account (subject to normal age and maximum-amount limits) if you want to.
So there are definitely lots of benefits in an Account-based Pension account!
(The above is based on my recent research and experience but always check carefully what applies in your own circumstances).
I have not been found eligible for Centrelink pension payments. I have a transition to retirement account and still working full time. I draw a minimum amount from tne transition to retirement every year. Will it benefit me to close transition to retirement account Is the amount drawn added to your income for Centrelink testing of income.
Hi Sabita, the funds you draw down from your transition to retirement account are not assessed as income. Centrelink look at the total balance in the account and assess it as an asset.
I am 69 years and centrelink deem i am not elligable for age pension due to the amount of super i have accumulated. (1.6mil)
I know others with similar amounts and have been granted the age pension. I have worked and paid taxes for 55yrs. NOT FAIR.
Hi Paul, the highest possible threshold (which is for couples who are non-homeowners) is $1,108,000. Perhaps these people you know of have a partner who is under Age Pension age and the bulk of their super is accumulating in the younger partner’s name, making it exempt from assessment until they turn Age Pension age.
I checked the ASIC Account Based Pension calculator to see how long my super would last.
I entered a 4% per annum draw down and was shocked by the result that my super would run out by age 79 even though my super would grow by 5% per annum
Even if there is a yearly fee, surely my super balance would stay level, or even grow rather than running out
Am I missing something here
Hi Billy, well done on proactively trying to take charge of your future! The ASIC calculators are very conservative in their estimations. ASIC minus 0.85% for fees, 2.5% for inflation, and 1.5% for cost of living increases, meaning a 4.85% reduction before factoring in your actual drawdown amount. Therefore based on ASIC’s model you’d have to be getting a return of 8.85% or more each year to cover your 4% drawdown and the costs they are factoring in.