Hi Sue, thank you for your feedback and we will definitely take this on board for future topics. If you would like to discuss your individual situation in more detail please email hello@retirementessentials.com.au and we can arrange a 30min phone consultation.
I have been living in Australia since January 2016 and received my full residents visa in October of that year. Between a uk state pension and a small works pension I receive approximately $1,500 a month in income depending on exchange rates.
I have never worked in Australia and live with my daughter and her husband. I am divorced.
Will i qualify for a pension from Australia.
Hi Rona, Centrelink’s residency criteria to be eligible for an Australian Age Pension is that you need to be a citizen/permanent resident for at least 10 years and 5 of those 10 years need to be consecutive. Based on what you have advised you would not be eligible for an Age Pension until October 2026. You can potentially apply for a Commonwealth Seniors Health Card (CSHC) though as the criteria is different, we will send you an email separate to this comment with details on how we can potentially help you to apply for the CSHC.
It may also be possible for you to receive a lower income health care card (LIHCC) as well, depending upon deemed assets and other income. This may entitle you to discounts on rates, utilities bills and some state services. (In Tas, it’s about $2 a day off utilities, for example.)
Hi . I m getting half pension at the moment, due to have grannyflat income. And my wife age 63 still working park time .
I have $80000.in term deposit. My super about $28000. So what’s your suggestion.
Hi Sunny, we will send you an email separate to this comment with details as to how we may be able to assist you via a one on one phone consultation so we can discuss your situation in greater detail but also in private.
Will benefit if you have a discussion on various types of investment and their effect on age penion amount. For ex, investment in real estate vs in cash vs in super account.
Maybe what a lot of people need to know is that if you are on the pension and say your partner is 5 years younger than you can be entitled to the full age pension. If you keep say less than $250k in your account and place more funds into the younger persons account then their super is treated differently until they reach pension age. As log as their account is not an income stream but left as a Super account and you are below the asset and income thresholds.
My wife aged 61 and I aged 72 receive a full aged pension, I receive a veterans affairs disability pension and my wife also receives the carers allowance
The annual total of these pensions is approximately $80,000
My wife will shortly receive a part inheritance of $170,000
This will mean our assets will be higher which will affect the aged pension
I understand that my wife does not have to declare her super in the asset test until she reaches the pension age of 66
Would it be possible to transfer my super into her super to avoid the reduction in the pension
Cheers
Chris
Hi Chris. Your understanding is correct in that a partner’s super isn’t included in the age pension asset test until the partner reaches age pension age. Depending on where the partner sits in regard to their contribution thresholds it may be possible to contribute a lump sum to the partner’s account. This could be from an inheritance or from a withdrawal from the other partner’s super. Your situation is a bit more complicated as you also receive a veterans affairs pension and your wife receives a carer’s allowance. You should speak to a financial adviser to see what might be best for you in your circumstances.
Ok here goes with our financial situation being a little complex. Firstly we own our home worth around $1.4 million with no debts.
My Super balance is $170,000, low because at 67 l paid out our mortgage when l retired and my wife at 61 has Super of $70,000.
l receive $500 out of my Super each fortnight, $1,900 a month from a Directorship and $400 from a part pension. My wife receives $700 a fortnight from a part time job.
This all adds up to around $65,000 a year to live on which leaves us a little short needing around $75,000 a year to maintain our life style.
So how can we increase our annual income from this position if at all?
That is a reasonably complex situation, Steve. You will want to check the sustainability of your spending amount over your lifetimes. As your assets and income decline, your Age Pension will likely increase. And you have a great asset in your mortgage-free house, which gives you options (such as Pension Loan Scheme or private reverse mortgage). A little financial advice might be needed.
Thank you for the great information you provided to the retirement age group and let them understand how their financial future will be for many years a head .
I too will appreciate if you provide topic for people having low partial pension because their partner still having good income from a full time job .
Thanks.
Hello Jeremy, Thank you for ‘teaching us’ how to manage our retirement income. No doubt it is very useful.
Can you please tell us something about ‘helping out’ our children without being strongly disadvantaged. For example, can one loan some money to a struggling adult child, even if it is a loan?
Thank you.
Marie, You can loan money to an adult child , but Centrelink will still consider that loan an asset of yours. You can also give limited gifts as described in Centrelink’s policies here.
I am 66 and single. I have approximately $160,000 in savings and $420,000 in super. It seems like a lot, but I am concerned about the future. When would I be eligible for the pension , if ever.
Thank you.
Hi Sarah, thank you for reaching out for further assistance. We will send you an email separate to this comment with details on how we can potentially help via a phone consultation.
John Colborne
on August 24, 2021 at 9:24 pm
I’m on a part pension as I receive a CSC defined benefit pension as well which is fully indexed. My wife and I both have money in separate superannuation accounts totaling about $110,000. We are not drawing down on these funds.
Would it be better to put our super into an annuity and how would that affect our Age pension?
John, we can’t give you personal advice on whether an annuity is right for you. There can be some Age Pension benefits for part pensioners in utilising an annuity. Where a person holds an annuity product that meets the legislative requirements then only 60% of the purchase price of the annuity is considered under the assets test until age 84 and then 30%. So, purchasing an annuity can reduce your assets for the assets test and potentially lead to a higher part pension. Challenger, one provider of annuities, explains it well here. You may wish to talk to a financial adviser about annuities.
I am 3years away from the pension but I think we have to much in assets to receive a pension can we talk to someone about it as we would like to leave some assets to our children and maybe get part pension
Hi Victor, thank you for your comment, we will send you an email separate to this comment with details regarding our phone consultations that you can respond to.
My husband and I will retire in three years at age 67. Combined we have $250,000 in super, and 50,000 in cash. We own a home worth $1,000,000. Is there a “sweet spot” that we should aim for so our lifestyle will be comfortable with both the age pension and income.
Hi Amanda, thank you for reaching out for assistance. We will send you an email separate to this comment with details on how we can potentially assist via a phone consultation.
We (aged 70 and 67) would be interested in some commentary around a couple who own both their home and a holiday home (neither is encumbered). The only income is from Superannuation investments.
Thanks,
Paul
Hi my name is les thomson l am 65 and hope to retire next year , I have $170000 in super and my wife is 60 works part time $400 per week and she has $84000 in super and our bank balance is $70000 , we have a house valued $900000 and we have no debts,any advice if this is possible, regards les
Hello, I am 69 years and self funded retiree – do a little casual work to help augment income and live relatively modestly. Thus I do not receive any government assistance at all. Am interested to know if I could perhaps be eligible for Commonwealth Seniors Health Card. Also interested in the application of this article’s asset points for singles, which youve responded to earler commentators to say you will do, so thanks.
Running $900,000 $900 k in super and $50 k not) under super, assuming a 8% return (10 years average as per most industry finds), and 2% off for inflation p.a. may even see that couple be able to retire at 60 and not have to rely on what may be a very much harder to get old age pension.
Gary, you might like to try our Retirement Income and Spending calculator. To use it you can go through our Age Pension Eligibility calculator and after finishing that you will see the Retirement Spending Guide in the left hand menu. The calculator helps think about sustainability of spending in different market conditions.
Hi
I have been living in Australia since Sep 2014 on a PR visa . I got citizenship in 2020 .
I am divorced and live in my daughters apartment and pay a subsidised rent .
Australia is my permanent residence . I did go on a few long holidays as I am not working . I never worked in Australia . I am 67 years old . I have lived for 5 consecutive years in Oz .
When will I be eligible for aged pension and when should I apply ?
I have no income and live on my savings now .
Hi Oenone, thank you for reaching out for further assistance. We will send you an email separate to this comment with details on how we can potentially help via a phone consultation.
I was on a part pension until the coalition moved the goalposts. My wife and I lost $14,000 per year of age pension so I went back to part time work. Our allocated funds balances are higher now than when we commenced them 8 years ago because we have been drawing the minimum legislated amounts and we have funds with multiple asset classes. We have been drawing the minimum because I don’t trust politicians not to tamper with the rules. Mt scepticism proved correct when the coalition government moved the goalposts
Hi,
I am 60 years old single man who lives alone in my own villa which is worth 800K in Sydney.
Due to hearing difficulties I have with compounded knees pain, I wasn’t able to find any long-term employment for over the last two years.
So my question is if am I started to use TFR pension( intending to withdraw 4% yearly) from my Super which currently balances about 700K plus Jobseeker allowance I am receiving ($ 450per fortnight) , will that be feasible to live on another 20 to 25 years ?
I current cost of living is 50K a year and considering 2% inflation, I may need 75K in 10 years’ time so what kind of strategy should I put in place?
Hi Maung, thank you for reaching out for further assistance. We’re sorry to hear of your health issues and their impact on trying to secure long-term employment. To help understand how long your money may last we have a Retirement Spending Guide tool that you can utilise. I can see you have registered your account/password with us previously so if you CLICK HERE and login, you will see on the left hand side of your dashboard our Retirement Spending Guide that you can use to help with your planning.
Pierre-Anthony Christian
on August 26, 2021 at 4:10 pm
I would take you up on your help except for the fact I’m flat stoney broke due to a crook of a former employer who didn’t pay any super to any of his drivers for 6 yrs and has gone bankrupt. ATO won’t even look at him as he’s protected by the bankruptcy act.
I have around $100k of super and owe around $215k on our 2×2 apartment. The family home is worth around $750K and paid for. The apartment earns around $400/week. I am 64 and my wife is 60. I’m finding it increasingly difficult to work a physical job and can’t wait to be eligible for the pension. Mt wife doesn’t work and is suffering with sight and hearing. What can I expect in 2 and a half year’s time?
Hi Don, thanks for reaching out for further assistance. I can see you have used our eligibility calculator earlier today but were told you are ineligible for any payment. To get an idea as to what you may receive once retired I recommend completing the eligibility calculator again but enter $0 as the amount of income you are earning to get a rough indication (obviously there may be changes between now and in 2.5 years’ time). To aid in this I have sent you an email separate to this comment for you to set up your account with us which means you can login and complete the eligibility calculator as many times as you like between now and when you are ready to apply.
My husband and I, 67 and 73 years of age, have approx. $420,000 in super. Thus we will be eligible for part Age Pension. Can we draw down more than 10% per year, say $50,000 for 7 to 8 years and then downsize our home worth quite a lot and put $600,000 back into Super to last the next 10 to 15 years of our lives. Question being does the amount I draw from our Super make a difference to the Pension figure per year?
Hi Teresa, thank you for reaching out for further clarity. As superannuation is considered an asset (not income) and is based on the total balance of the account, the amount you choose to draw down does not impact your pension in a negative way. In fact drawing more will reduce the total balance further therefore meaning you may be eligible for an increase in the amount of pension you receive as your super’s balance falls further and further over the years. If you would like to discuss the matter in more detail to understand your options and best prepare yourself we can have a confidential phone discussion with you. I will send you an email with further details separate to this comment.
Would appreciate similar comment/example for single pensioner too.
Thank you
Hi Sue, thank you for your feedback and we will definitely take this on board for future topics. If you would like to discuss your individual situation in more detail please email hello@retirementessentials.com.au and we can arrange a 30min phone consultation.
I have been living in Australia since January 2016 and received my full residents visa in October of that year. Between a uk state pension and a small works pension I receive approximately $1,500 a month in income depending on exchange rates.
I have never worked in Australia and live with my daughter and her husband. I am divorced.
Will i qualify for a pension from Australia.
Hi Rona, Centrelink’s residency criteria to be eligible for an Australian Age Pension is that you need to be a citizen/permanent resident for at least 10 years and 5 of those 10 years need to be consecutive. Based on what you have advised you would not be eligible for an Age Pension until October 2026. You can potentially apply for a Commonwealth Seniors Health Card (CSHC) though as the criteria is different, we will send you an email separate to this comment with details on how we can potentially help you to apply for the CSHC.
Thankyou. I am grateful for the information. Rona
It may also be possible for you to receive a lower income health care card (LIHCC) as well, depending upon deemed assets and other income. This may entitle you to discounts on rates, utilities bills and some state services. (In Tas, it’s about $2 a day off utilities, for example.)
Hi . I m getting half pension at the moment, due to have grannyflat income. And my wife age 63 still working park time .
I have $80000.in term deposit. My super about $28000. So what’s your suggestion.
Hi Sunny, we will send you an email separate to this comment with details as to how we may be able to assist you via a one on one phone consultation so we can discuss your situation in greater detail but also in private.
Will benefit if you have a discussion on various types of investment and their effect on age penion amount. For ex, investment in real estate vs in cash vs in super account.
Maybe what a lot of people need to know is that if you are on the pension and say your partner is 5 years younger than you can be entitled to the full age pension. If you keep say less than $250k in your account and place more funds into the younger persons account then their super is treated differently until they reach pension age. As log as their account is not an income stream but left as a Super account and you are below the asset and income thresholds.
I too would appreciate a single person example of the same amounts
Baz
My wife aged 61 and I aged 72 receive a full aged pension, I receive a veterans affairs disability pension and my wife also receives the carers allowance
The annual total of these pensions is approximately $80,000
My wife will shortly receive a part inheritance of $170,000
This will mean our assets will be higher which will affect the aged pension
I understand that my wife does not have to declare her super in the asset test until she reaches the pension age of 66
Would it be possible to transfer my super into her super to avoid the reduction in the pension
Cheers
Chris
Hi Chris. Your understanding is correct in that a partner’s super isn’t included in the age pension asset test until the partner reaches age pension age. Depending on where the partner sits in regard to their contribution thresholds it may be possible to contribute a lump sum to the partner’s account. This could be from an inheritance or from a withdrawal from the other partner’s super. Your situation is a bit more complicated as you also receive a veterans affairs pension and your wife receives a carer’s allowance. You should speak to a financial adviser to see what might be best for you in your circumstances.
Can you receive a full aged pension, and a veterans affairs disability pension
Ok here goes with our financial situation being a little complex. Firstly we own our home worth around $1.4 million with no debts.
My Super balance is $170,000, low because at 67 l paid out our mortgage when l retired and my wife at 61 has Super of $70,000.
l receive $500 out of my Super each fortnight, $1,900 a month from a Directorship and $400 from a part pension. My wife receives $700 a fortnight from a part time job.
This all adds up to around $65,000 a year to live on which leaves us a little short needing around $75,000 a year to maintain our life style.
So how can we increase our annual income from this position if at all?
That is a reasonably complex situation, Steve. You will want to check the sustainability of your spending amount over your lifetimes. As your assets and income decline, your Age Pension will likely increase. And you have a great asset in your mortgage-free house, which gives you options (such as Pension Loan Scheme or private reverse mortgage). A little financial advice might be needed.
Hi, It would be nice to discuss the PLS system with people who instead of having cash or super have investment properties worth $550,000 or $950,000.
Thank you
Thank you for the great information you provided to the retirement age group and let them understand how their financial future will be for many years a head .
I too will appreciate if you provide topic for people having low partial pension because their partner still having good income from a full time job .
Thanks.
Hello Jeremy, Thank you for ‘teaching us’ how to manage our retirement income. No doubt it is very useful.
Can you please tell us something about ‘helping out’ our children without being strongly disadvantaged. For example, can one loan some money to a struggling adult child, even if it is a loan?
Thank you.
Marie, You can loan money to an adult child , but Centrelink will still consider that loan an asset of yours. You can also give limited gifts as described in Centrelink’s policies here.
I am 66 and single. I have approximately $160,000 in savings and $420,000 in super. It seems like a lot, but I am concerned about the future. When would I be eligible for the pension , if ever.
Thank you.
Hi Sarah, thank you for reaching out for further assistance. We will send you an email separate to this comment with details on how we can potentially help via a phone consultation.
I’m on a part pension as I receive a CSC defined benefit pension as well which is fully indexed. My wife and I both have money in separate superannuation accounts totaling about $110,000. We are not drawing down on these funds.
Would it be better to put our super into an annuity and how would that affect our Age pension?
John, we can’t give you personal advice on whether an annuity is right for you. There can be some Age Pension benefits for part pensioners in utilising an annuity. Where a person holds an annuity product that meets the legislative requirements then only 60% of the purchase price of the annuity is considered under the assets test until age 84 and then 30%. So, purchasing an annuity can reduce your assets for the assets test and potentially lead to a higher part pension. Challenger, one provider of annuities, explains it well here. You may wish to talk to a financial adviser about annuities.
I am 3years away from the pension but I think we have to much in assets to receive a pension can we talk to someone about it as we would like to leave some assets to our children and maybe get part pension
Hi Victor, thank you for your comment, we will send you an email separate to this comment with details regarding our phone consultations that you can respond to.
My husband and I will retire in three years at age 67. Combined we have $250,000 in super, and 50,000 in cash. We own a home worth $1,000,000. Is there a “sweet spot” that we should aim for so our lifestyle will be comfortable with both the age pension and income.
Hi Amanda, thank you for reaching out for assistance. We will send you an email separate to this comment with details on how we can potentially assist via a phone consultation.
We (aged 70 and 67) would be interested in some commentary around a couple who own both their home and a holiday home (neither is encumbered). The only income is from Superannuation investments.
Thanks,
Paul
Thanks for the feedback, Paul. We’re very likely to write more about using home equity for retirement income in the future.
Hi my name is les thomson l am 65 and hope to retire next year , I have $170000 in super and my wife is 60 works part time $400 per week and she has $84000 in super and our bank balance is $70000 , we have a house valued $900000 and we have no debts,any advice if this is possible, regards les
I too would appreciate a single person’s version of this article.
Hello, I am 69 years and self funded retiree – do a little casual work to help augment income and live relatively modestly. Thus I do not receive any government assistance at all. Am interested to know if I could perhaps be eligible for Commonwealth Seniors Health Card. Also interested in the application of this article’s asset points for singles, which youve responded to earler commentators to say you will do, so thanks.
Running $900,000 $900 k in super and $50 k not) under super, assuming a 8% return (10 years average as per most industry finds), and 2% off for inflation p.a. may even see that couple be able to retire at 60 and not have to rely on what may be a very much harder to get old age pension.
Gary, you might like to try our Retirement Income and Spending calculator. To use it you can go through our Age Pension Eligibility calculator and after finishing that you will see the Retirement Spending Guide in the left hand menu. The calculator helps think about sustainability of spending in different market conditions.
Hi
I have been living in Australia since Sep 2014 on a PR visa . I got citizenship in 2020 .
I am divorced and live in my daughters apartment and pay a subsidised rent .
Australia is my permanent residence . I did go on a few long holidays as I am not working . I never worked in Australia . I am 67 years old . I have lived for 5 consecutive years in Oz .
When will I be eligible for aged pension and when should I apply ?
I have no income and live on my savings now .
Hi Oenone, thank you for reaching out for further assistance. We will send you an email separate to this comment with details on how we can potentially help via a phone consultation.
Thanks for your email . Appreciated .
I was on a part pension until the coalition moved the goalposts. My wife and I lost $14,000 per year of age pension so I went back to part time work. Our allocated funds balances are higher now than when we commenced them 8 years ago because we have been drawing the minimum legislated amounts and we have funds with multiple asset classes. We have been drawing the minimum because I don’t trust politicians not to tamper with the rules. Mt scepticism proved correct when the coalition government moved the goalposts
Hi,
I am 60 years old single man who lives alone in my own villa which is worth 800K in Sydney.
Due to hearing difficulties I have with compounded knees pain, I wasn’t able to find any long-term employment for over the last two years.
So my question is if am I started to use TFR pension( intending to withdraw 4% yearly) from my Super which currently balances about 700K plus Jobseeker allowance I am receiving ($ 450per fortnight) , will that be feasible to live on another 20 to 25 years ?
I current cost of living is 50K a year and considering 2% inflation, I may need 75K in 10 years’ time so what kind of strategy should I put in place?
Hi Maung, thank you for reaching out for further assistance. We’re sorry to hear of your health issues and their impact on trying to secure long-term employment. To help understand how long your money may last we have a Retirement Spending Guide tool that you can utilise. I can see you have registered your account/password with us previously so if you CLICK HERE and login, you will see on the left hand side of your dashboard our Retirement Spending Guide that you can use to help with your planning.
I would take you up on your help except for the fact I’m flat stoney broke due to a crook of a former employer who didn’t pay any super to any of his drivers for 6 yrs and has gone bankrupt. ATO won’t even look at him as he’s protected by the bankruptcy act.
I have around $100k of super and owe around $215k on our 2×2 apartment. The family home is worth around $750K and paid for. The apartment earns around $400/week. I am 64 and my wife is 60. I’m finding it increasingly difficult to work a physical job and can’t wait to be eligible for the pension. Mt wife doesn’t work and is suffering with sight and hearing. What can I expect in 2 and a half year’s time?
Hi Don, thanks for reaching out for further assistance. I can see you have used our eligibility calculator earlier today but were told you are ineligible for any payment. To get an idea as to what you may receive once retired I recommend completing the eligibility calculator again but enter $0 as the amount of income you are earning to get a rough indication (obviously there may be changes between now and in 2.5 years’ time). To aid in this I have sent you an email separate to this comment for you to set up your account with us which means you can login and complete the eligibility calculator as many times as you like between now and when you are ready to apply.
Hi
My husband and I, 67 and 73 years of age, have approx. $420,000 in super. Thus we will be eligible for part Age Pension. Can we draw down more than 10% per year, say $50,000 for 7 to 8 years and then downsize our home worth quite a lot and put $600,000 back into Super to last the next 10 to 15 years of our lives. Question being does the amount I draw from our Super make a difference to the Pension figure per year?
Hi Teresa, thank you for reaching out for further clarity. As superannuation is considered an asset (not income) and is based on the total balance of the account, the amount you choose to draw down does not impact your pension in a negative way. In fact drawing more will reduce the total balance further therefore meaning you may be eligible for an increase in the amount of pension you receive as your super’s balance falls further and further over the years. If you would like to discuss the matter in more detail to understand your options and best prepare yourself we can have a confidential phone discussion with you. I will send you an email with further details separate to this comment.