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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.
Hi ,
I am 67 yrs old and receive a full pension , my wife is 61 and unemployed .
She has an active super account .
If she withdrew money ( eg $50,00) from her supper account and deposited into our bank account ,would that affect my pension?
We would still be under the pension assets threshold .
regards
Alan
Hi Alan, thanks for reaching out for assistance. Whilst your wife is under the Age Pension age, any super she has in accumulation is not included as an asset when calculating your pension. Should she start to draw down on her pension prior to reaching Age Pension age then that exemption is removed and the full balance will be counted as an asset moving forward. Therefore although the $50,000 withdrawn may not impact your pension, her total superannuation balance added on to your existing assets may cause a reduction or even cancellation of your pension depending on how much is in her super.
Hi
Can I put $300,000 in to my younger wife’s super in 3 separate transactions of $100,000 in the same year or does it have to be $300,000 in 1 single transaction
Hi Pete. The contribution can be made as one or as several transactions. The important thing to keep in mind is that your partner has to meet the rules and requirements as the money is going into their super. If your partner meets the requirements under the bring forward non concessional contribution rules then you can put up to $330,000 into to your partners super.
I turned 66 years old in September 2021, my partner has just turned 56 and earns $47,000 per year am I entitled to any pension when I reach 66 years and 6 months. Thank you
Hi,
I appreciate your all replies, are explained in detail.
Thank you.
Today I read your reply to a question about withdrawing some money from a younger partner super account can change the status of partner super being counted toward couple assest test.
Pls provide some more information on this issue.
Hi Mohammad, thank you for the feedback, it’s great to know our readers are finding our content so beneficial! We may indeed do a separate article on the impacts of drawing down on super prior reaching Age Pension age however for the moment if you have specific concerns we can assist with these via a phone consultation. We will send you an email separate to this comment with further details.
I was filling out the eligibility calculator and noticed there was no place to enter super income stream payments. I assume that these would impact the eligible pension entitlements.
Hey Guy, good pickup however the way Centrelink assess income streams is as assets not income. Therefore you should add the total balance of your income stream to the superannuation section of our eligibility calculator for the most accurate outcome.
Hi Mohammad, thanks for your question. If your partner is not yet of pension age, and their super is still in an accumulation account, then their super is not included in the assets test. If however they withdraw the money and put it in a bank account for instance it will be included in the assets test.
Hi, I am 68 and retired but my husband is 59 and has a small business, would I be entitled to a part pension?
Thank you
Hi Gail. You meet the age requirements for the age pension. Your entitlements will be based on how you are assessed under the assets and income test. You will be assessed as a couple based on your combined assets and income and because your partner is not yet eligible you will receive half of the couples entitlement. You can check what you might be entitled to receive on our eligibility calculator which you can find here
Hi I am 66 and have 2 houses
Mortgage is on the investment property
Will this effect my pension application
Hi Noel. The equity in an investment property will be included in the age pension assets test. Having a mortgage against the investment property reduces the equity and therefore the assessable assets which is good from an age pension entitlements perspective. There may of course be lots of other considerations. If on the other hand the mortgage was against the home then the entire value of the investment property would be included in the assets test.
hi
L was 66 in June this year – when am i able to receive a pension?
Hi Terry. If you turned 66 in June then you already meet the age pension eligibility age and you can apply now. You can check how much you are eligible to receive here.
Hi my name is John Iam 68 and would like to retire my wife works full time and has wage of about $100,000 per year
We owne our home and I have small super can I get the pension.
Hi John. Based on your wife’s salary you will most likely exceed the income test maximum threshold as a couple which is $84,167 p/a. It is worth checking though on our eligibility calculator which you can find here.
Hi.
I’ve read your latest article. One question though. If my younger partner is receiving an income from her super can she convert her super back into accumulation so that I can then apply for the aged pension ?
The question posted by Ray Brockie on September 28 2021 looks to be one of the few questions on this forum that did not receive a reply. It’s a very important question and if anyone is still monitoring this forum I would be pleased if you could provide a response.
The question was ” If my younger partner is receiving an income from her super can she convert her super back into accumulation so that I can then apply for the aged pension ?”
Hi David, thank you for re-raising an important query! The answer is yes a younger partner can move their account-based pension back into accumulation so that it becomes exempt in the Age Pension test.
Hi, my husband and I have recently applied and been approved for a part age pension. At the time of filling the forms we were not receiving an income stream from our super, however, we have now decided that we need to have an income stream to help maintain our lifestyle. Will this affect the amount that we receive from Centrelink.
Hi Carol, thanks for reaching out for assistance. Transferring some of the money from your accumulation account into an income stream will not impact the amount of pension you receive. You are simply converting one type of asset into another, your overall position is still the same. Income streams and accumulation accounts are assessed the same way by Centrelink. You will need to provide Centrelink with documents to show the withdrawal from your accumulation account and new balance after the withdrawal as well as the schedule for the newly created income stream.
I would like to know if I m untitled to a pension. I am 68 and I don’t have a super and my husband is 63 and still working. I can’t work be cause I have arthritis. Veronica
Hi Veronica, thank you for reaching out for further assistance. As there are a few factors that influence eligibility we will send you an email separate to this comment with details on how we can potentially help via a phone consultation.
I am on 9 acres however it has protected species on it so cannot use the land for anything.
Will this stop me from getting a pension?
Hi Robyn, thanks for reaching out for assistance. The house you live in and surrounding 5 acres will not be counted towards your assets however Centrelink will assess the 4 additional acres as an asset. You are able to stipulate the value of that 4 acres though so based on what you have said you may be able to list the additional land’s value as quite minimal due to the protected species present. If you would like to know more or have other questions we will send you an email separate to this comment with details on how we can assist via a phone consultation.
Hi,
I wondered to assess my partner and mine eligibility for pension what scale of fees are. Our ages are 73 & 66.
Many thanks.
Hi Anthony, we have a number of services depending on the level of assistance you require. We will send you an email separate to this comment with further details so you can decide how you wish to proceed.
I would also like to obtain a copy of the cost structure for advice, thanks
Hi Peta, thanks for reaching out for further assistance. I will send you an email separate to this comment which discusses our services and the associated fees for you to consider.
I am now 70, and haven’t worked for two years. I suffered a major and lifelong physical injury and PTSD when attacked by a client, but because of my age I was only eligible to be on worker’s compensation for one year. We have been living on my wife’s income since. She was made redundant just after I was injured due to Covid, and we lived off our savings until she was able to secure some casual work. She now earns about $66,000 per year. My pension application was just declined because ‘We cannot pay you the aged pension because the combined income of you and your partner is above the allowable limit.’ As well, the letter from Centrelink declining my claim for the pension included the following: ‘Combined fortnightly regular earnings: $2,000.’ I have no idea where that came from because my wife is the only one who works, and her earnings are by no means regular. I note from the form that I don’t appear to have an avenue to dispute the assessment. Do I have any other options?
Regards.
Shane Flynn
Hi Shane, thank you for reaching out for assistance. You can call Centrelink on 132 300 to appeal the outcome and request a re-assessment. You have 13 weeks from the date you were declined to do this so you may wish to request from Centrelink a breakdown of the income they have recorded for you and your wife so that you can understand how they reached their figure and then provide whatever documents are necessary to show your true earnings. On top of employment income there is also deemed income which is the income Centrelink deem you will earn from your financial assets (bank accounts, superannuation, shares etc.) so bare in mind that will be added onto your wife’s employment income.
My 63yo husband withdrew $250k from his super 3 years ago when he was unemployed & worried about a market crash. He’s since seen how much he could have earned if he’d left it there & has decided to return $100k back into his super fund. Will he have to pay tax on it again? He is unemployed, but does regular volunteer work. I’m 67 & on the pension,
Hi Judy. There is no 15% contributions tax payable on what are known as non-concessional contributions. Personal contributions to a super fund such as what you described fall into this category.
I understand how your super accumulation and income stream accounts combine to count as assets. My understanding is that the income stream from there is assessed as income.
What I can’t get my head around is deeming. Deemed income I understand, but if you have in income stream from your super is the assessed income the value of the stream plus the deemed amount. Or does the income stream subtract from the deemed amount?
In other words, are you assessed as consuming your deemed income, or deriving income in addition?
Hi Mark, the amount you are drawing down from your stream is not considered “income” in any way. Centrelink count only the deemed amount which is based on the total balance of your income stream. If, for example, you were drawing down $20,000 per year and the deemed income was $5,000 Centrelink would combine the $5,000 with any other deemed and employment income to calculate your total.
Thanks, Steven
Appreciate the clarification
Reading these replies above and trying to transpose to my own situation for pension eligibility, presuming I pass both elegibility tests, am I right to assume that I would receive half the couples pension, [further reduced if I / we don’t pass one of the tests by 100%]. I am in my early 70’s & have a dependent non working wife aged late 30’s with no real assets or super??
Presumably if I were to place a substantial cash sum up to $330,000 into a SMSF or similar for her, she would not easily gain access to that as a lump sum under normal / most circumstances anyway surely – but I’m unsure as an income stream. Is there a minimum age that she could start receiving that?
Hi Adrian, thanks for your question. Yes there is a minimum age to start receiving an income stream. Basically you can’t start an income stream until you have reached your preservation age. For people born after 1 July 1964 the preservation age is 60.
Thanks for clarifying that James. Was my assumption right that I can receive half the couples pension if I pass both the assets and income tests?
Hi Adrian. Yes that is correct. You will be assessed as a couple and you will receive half of your entitlement as a couple. You can use our age pension eligibility calculator to check how much you are likely to receive. you can find it here
Hi,
I am 1 year away from applying for pension & my wife has another 3
years to go.
1- Once I get on the pension ( subject to our total income & assets)
Is it correct that I have to by law start to draw down on my super 5 – 10 % per year ?
2- I have read I may be able to earn an additional $ 10,000 per year without
it effecting my pension – via paid work or side business.
Is this correct ?
Hi Chris. You aren’t required to withdraw money from a superannuation account but there are minimum withdrawal rates that apply if you have started a super income stream such as an account based pension. These rules apply regardless of whether you are, or are not, receiving the age pension. The ATO has a table of all the minimum withdrawal rates for different age groups which you can find here.
I think what you are referring to in your second question is the work bonus. The work bonus allows people to earn an additional $7,800 p/a without affecting their age pension entitlements. You can read more about the work bonus here.
Hi my wife is 65 and I’m 65 in December we are living off our superannuation income stream. We have to be 66.5 before we are able to get a pension.
My question is when are we able to start the application process with Centrelink and are you able to do this for us.
Thank you
Hi John, you can begin the process up to 13 weeks prior to turning 66.5 this allows Centrelink to approve your claim in time to start paying you as soon as you are eligible. We can definitely help you with the application but given there is still a while to wait it would be best to contact us closer to when you can apply.
Thanks Steven
I will definitely do that. I have a friend who you have helped and he highly recommended retirement essentials to us.
My husband is 69 and receiving a pension from ESS super who do not provide a balance. I am 65 and still 18 months from pension age. My super balance is $250k and has been converted to an income account. Applying for the pension, do we list his fortnightly income as income and my superannuation account only as assets?
Hi Jane, it sounds like your husband is receiving a defined benefit in which case you are correct, there is no balance and you list the amount he receives as income. Your superannuation will still be counted as an asset despite being converted to an income stream so you are correct to list the $250,000 as an asset.
My husband is 66 and has a French pension. I am 64 and have converted my super into an income stream in 2019. My husband has only been resident for just over 2 years so will not received an Australian pension. My question is will my income based pension balance be treated as an asset and assessed as a couple?
Hi I turned 65 in September and my husband turned 59 in may.He is still working and I am not working. We are renting and have no assets, only his super about about 390,000.
Will I be able to collect my pension once I turn 66.5 ?
Hi Joanna. Yes you will be eligible to apply when you turn 66 1/2. In fact you can apply up to 3 months before that date which helps you get your entitlements at the earliest possible date. Based on what you have said your assets will be below the minimum threshold however your husband is still working and his income could affect your pension entitlements. You can check what your entitlements are likely to be and when you can first apply by using our age pension eligibility calculator which you can find here.
Hi
I am 64 years old and hoping to apply for age pension in three years. Myself and my wife has SMSF and we have borrowed through SMSF for an investment property. The equity in the property is $300000 and we still have $100000 in cash within the SMSF.
What will be our super asset?
Hi I would like some advice on whether it’s worth claiming a tax deduction. If I was to put $100,000 into Super as a after tax contribution.
I don’t pay the 15% deposit tax.
If I want to claim it as a tax deduction I will be charged the 15% deposit tax which = $15,000.
If I did that and then claimed it as a tax deduction am I better off?
What amount will I be able to claim as a tax deduction.
I’m getting conflicting advice from the accountant and the super fund.
Hi Caroline. There are a lot of issues to consider to determine whether you will be better off in this situation. A financial adviser will have a better understanding of those issues and would be able to provide some advice for you on this.
Hi, Unrelated to some extent, but seeing how you are taking the trouble to answer all queries, thought you might help here – can be useful to many as well. I am a part pensioner, but haven’t reported the Super balance changes arising from its returns this year to Centrelink. Is it my responsibility or do they pick it up automatically from the ATO. Thanks.
Hi Sarath. Centrelink will automatically update this twice a year, in March and September. the exception is if you are in a Self Managed Super Fund (SMSF). If you are in a SMSF Centrelink will contact you to update it yourself.
Thanks very much James. Relief to know this. Not a SMSF in my case.
I would also like to obtain some one off advice to clarify my situation around a Defined Benefit / Age Pension / tax strategy to increase my income,
Can you advise a cost for one off advice?
Thanks Graham
Hi Graham, thank you for reaching out, we’d love to discuss your situation in more detail and see how we can help! We will send you an email separate to this comment with details on how we might be able to assist.
Hi James,
What are the requirement before you can transfer the super asset fund to your younger partner? Can this be done before or on retirement age?
Thanks.
Kenny
Hi, I am 68 and on an have been on the aged pension since October 2021, my wife is 60 and unemployed. We live off the pension and drawdown from my super. Is there anyway my wife can claim unemployment benefits and will it have an effect on my pension.
Also I have been asked to project manager a 4-5 week installation and potentially earn 30K during this time working as a sole trader, what effect will this have on my pension during the time I am working and in the future.
Hi Wade, if you or anyone else reading would like to talk about your situation in detail, we offer 30min consultations at a cost of $75. We can clarify how Centrelink will assess you specifically and help guide you on any related matters that might impact your Age Pension. If you wish to proceed please CLICK HERE to book the best suitable time available.
My husband is getting age pension with Income stream product. Now I am eligible for Centrelink age pension and I have superannuation account. Should I apply first for income stream product and wait and then apply for age pension or vice versa.
Hi Manisha, 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.
CLICK HERE to book now.
I am 66 and my wife is 58 years old. We need a guidance for financial planning.
Hi Kiran. If you would like to talk to one of our Advisers you can book a consultation here.
I will be eligible for a pension in a few months. A few months after that, my wife will likely work for a few months, then stop, then start again and this could go on for a long time. She is quite highly paid when she is working. I believe that I would need to advise Centrelink of her salary each time she starts working again and that it would probably “stop” my pension immediately. But how hard is it to advise them later that she has stopped working, and once again start to receive my pension ? Is there a time lag between advising them and starting to once again receive the pension ? I believe that I am correct in that when assessing income, Centrelink looks at CURRENT income. It does not matter whether you earned $500,000 last week. Am I right in this please ? Many thanks to you for this,
Hi Robert, thanks for reaching out! In theory what you are describing is reasonably straight forward in terms of giving Centrelink evidence of your wife’s income so that your pension can be recalculated accordingly.
Centrelink will allow you to earn in excess of the fortnightly threshold (currently $3,314) for 6 fortnights before they will then cancel the pension. Alternatively even if it is less then 6 fortnights, if your wife earns in excess of the yearly threshold (currently $86,154) then your pension will also be cancelled.
The reason I mention this is if your pension is cancelled then you cannot simply turn it back on once your wife stops working/earning. You will need to go through the process of reapplying for the pension with claim forms and supporting documents. So if your wife is regularly going to earn in excess of the thresholds as you implied then it will not be so simple to get back on the pension.
Hello Steven. Thanks very much for your very prompt (and detailed) reply. We now know what our options might look like. Great blog you folks have going here !!
My husband will reach pension age in 10 months. I am 3 years younger and will not be working. Neither of us have super. What type of payment will we be eligible for?
Hi Patricia, thanks for reaching out. From what you have said it sounds like you may be eligible for the Age Pension. To confirm if you are eligible or not I recommend you try our free Eligibility Calculator as this will tell you what you are eligible for and if it is the Age Pension it will tell you how much.
Hi Steven, I’m 61 and hubby 69, he intends to work another 12 months then retire, our Dilemma is I have a adult daughter with a disability to which I care for, as I’m under pention age when my husband goes on aged pension his income has to support both of us , is there anything I can claim for myself
Hi Karen, thank you for articulating your situation! Regarding what assistance you may be able to receive via Centrelink, we specialise in the Commonwealth Seniors Health Card and Age Pension only so I couldn’t comment on what other benefits they may be able to offer you. Having said that, given you do need to be smart with your money to ensure it not only covers you expenses but lasts as long as possible, I think you may benefit from one of our Retirement Advice Consultations.
Our Retirement 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 can be either online or via phone call, goes for up to 45 minutes and costs $150.
CLICK HERE to book now.
Hi there Steven,
I am younger than my husband by 10 years and work full time. Based on my income of 100,000 he will not get any pension at all when he retires next year. However, I have the potential to salary sacrifice $40,000 a year as part of the catch up arrangements for concessional contributions as I haven’t used my full salary sacrificing amount in the past. Would that mean he might then be eligible for at least a part pension, or does Centrelink still count my original 100,000 income when it comes to calculating our total income?
Hi Liz, thanks for reaching out for help! Sorry to be the bearer of bad news but Centrelink always use gross figures in their assessments, not net. Your income is close the the couple’s threshold ($86,154) so if you were to reduce your days/hours so that your gross income legitimately reduced then your husband may be able to get a small pension but more importantly get the Pensioner Concession Card. You do need to also factor in deemed income from you and your husband’s financial assets on top of your employment income though. You can clickHERE to enter your details into our free online Eligibility Calculator which can do the heavy lifting and let you know how low your income would need to be for your husband to get some pension.
Hi, mt brother is retirement age and his wife is 65 but unable to work due to chronic illness. Is there a way thy get the couples pension?
Hi John. Your brother could pply for the Age Pension and if successful would get half the couple’s pension. His wife might be eligible for a Disability Pension or Jobseeker but not the Age Pension yet.
Hi my husband is of pension age & currently works 10hours per week & I am not a pensioner yet & work part time earning $38,000 pa. My husband declares our combined earnings each fortnight & currently gets a part pension.
My question is, if he stops working completely & I earn $38,000 per year how much pension would he receive. Thank you
Hi Rosie, thanks for reaching out! There are many Age Pension calculators out there that you can use and input multiple situations to understand the impact on your pension. You can find Retirement Essentials free calculator HERE.
My husband who is 68 is receiving a pension and also drawing an income stream from his Super. I am retired by not eligible for a pension as I am 65
I need to top up our bank account as all our money is in our Super funds
If I draw down say $30 which will still keep my husband under the asset threshold in his Super and combined assists; will the money coming out of my Super fund affect his pension payments.
Hi Jacqui, that is a good question to ask! The answer is that yes drawing from your superannuation can impact your husband’s pension. The balance of your superannuation is exempt from assessment so long as you are both under Age Pension age and your super remains untouched in accumulation. If you begin drawing down on your super then Centrelink may remove the exemption currently in place on your super and begin counting the full balance as an asset. So the issue is not so much with how much you decide to withdraw but more so that depending on the balance of your super, losing the exemption could have significant impact.
Hi,
I have an older partner (6 years) who will be entitled to the full age pension in March 2025.
As the rules stand, will I need to retire at the end of the 2024 financial year for her to receive the full pension or can I work right up to her retirement age in March?
My second question pertains to super. Can I withdraw money before the end of the 2024 year without the whole of my super account balance influencing her assets test?
Hi Nu, the queries you have raised have a few ifs, buts and maybes involved so it would be best to discuss your situation in detail. To do this we offer 30min consultations at a cost of $75. We can clarify how Centrelink will assess you specifically and help guide you on any related matters that might impact your Age Pension. If you wish to proceed please CLICK HERE to book the best suitable time available.