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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.
If I withdraw my super and deposit in term deposit will the interest earned be considered income and affect my pension?
Hi Howard. Deeming rates will be applied to your financial assets which includes both your money in super and a term deposit. Regardless of whether it is is super or a term deposit the deemed income will be assessable and could affect your Age Pension entitlements.
I understand Centrelink snap shots super balances on 20 September, so won’t eligible age pension recipients get a rise as our assets will be judged to have decreased?
Fears of financial upheaval are valid.
Like most organisations giving advice on financial risks you imply that in the long term all all will be OK and $10,000 invested in 1991 will return $131,413 by 2021. That the value will recover and we can relax. Unless of course the company fails to recover and goes into liquidation.
Note :Shareholders are at the bottom of the bucket in recovering any funds. Good financial advice does not protect investors from Corruption, Covid, Sub-Prime Mortgages and the like.
Let the buyer beware.
Getting money back in to Super, once withdrawn, may prove problematic due to age or other Govt restraints.
But one other option not mentioned is to consider moving your super into a different option. For example SunSuper (now ART) have shown losses in recent months across all options except Diversified Alternatives.
While “past performance is not a reliable indicator of future performance” as they say, it demonstrates that it’s worth reviewing the changing returns for different options.
It costs nothing to move between options (I imagine this is true with most, if not all, funds) and avoids the need to make a major commitment which may later be irreversible.
How do you move funds from within an SMSF to another recognized good performing fund ??