Two accounts for retirement aren’t better than one
I AM a 30-year-old full-time worker. I have realised I never rolled my old super fund to my new one when I changed jobs. I noticed in the old fund’s annual report that it did not perform well last year. I am thinking of transferring it to another fund where I can choose better investment mixes and be more hands-on. Are there issues with having two funds?
You are much better to have your superannuation in one fund and save annual account keeping fees, but you need to drill down and find out why your fund went backwards. Maybe you did not have a growth orientated asset mix.
I think you are at the perfect age to form a relationship with a financial adviser, which should set you on a good course for the future and recommend a super fund with features you require.
WHEN applying for part age pension I overestimated my casual wages – when I file my next tax return and have the actual wages for a year, should I then contact Centrelink so they can calculate if I was to be paid a higher fortnightly pension? Would they then credit me with a lump sum to make up what I have missed?
A Centrelink spokesperson says that waiting until the next tax return is too late to let the department know of any mistakes in reported income.
It’s important that people in receipt of an income support payment report any changes to their or their partner’s circumstances. If they have been advised by Centrelink that they should report their income situation every fortnight, they must report their own income and their partner’s income earned in the entire reporting period, even if they haven’t yet been paid by their employer. This will ensure their payment continues to be paid at the right amount.
If they have not been told to report fortnightly, they must advise within 14 days of a change in their circumstances; this can include whether they’ve earned income.
Centrelink suggests you notify it of your exact earned income as part of your notification obligations so that it can continue to pay the correct rate of pension.
I AM 66 and retired – my husband is 67 and will be retiring next year. I have a fairly small superannuation account. Can I transfer it to his superannuation account?
You can’t simply transfer your superannuation to your partner’s. But you could achieve your objective by withdrawing your balance, and allowing your partner to use the cash freed up to make a non-concessional contribution. As he is still working, he is eligible to contribute.
Noel Whittaker is the author of Making Money Made Simple and other finance books. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. Email: noel@noelwhittaker.com.au
You can’t simply transfer your superannuation to your partner’s superannuation