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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.
I understand that the aged pension is based on taxable income and deeming on assets. The Sarah example you quoted is misleading as the income she receives on her bank accounts is declarable on her income tax return and is regarded as taxable income if she exceeds the $18200 threshold. She would have to declare her taxable income and her assets (bank deposits) which would be subject to deeming. A double dip.
For instance if she has $500000 in assets or shares earning 5% interest then the dividends/bank interest of $25000pa would be declarable as income as well as the deemed value of the investment, substantially reducing the pension,
Hi Peter, thank you for keeping us honest and querying the accuracy of the article. Centrelink do not assess you income for Age Pension based specifically on taxable income as you have suggested though. Centrelink will look at many various income sources such as gross employment income, foreign pensions, defined benefits and deemed income from financial assets (amongst others) to determine your income for Age Pension purposes.
Self funded retirees are victimised. In order for a couple with a house to get equivalent to the aged pension they would need to have about $1.6 million in capital. At safe interest rates. I am 75 and if I had my time over again I would have bought say a house worth over $2 million and get the aged pension !!
I am 76 and married. I retired at 74 after working for almost 60years. For 20 years I worked 2 jobs and paid tax on both.
I cannot even get a part pension.
I have $50,000 in super which will not last long. My wife is currently still working and earns $120,000pa (not a lot in today’s environment). We have a small mortgage on our home.
The fact my wife is still working is the reason I am ineligible for any form of pension. I believe this is totally unfair particularly when you consider a couple earning up to $503,000 are eligible for childcare support???? How is this fair? I’ve had my whinge.