We paid tax our whole lives – why no age pension?
My wife and I are in our 70s but not receiving any age pension. Evidently, we cannot get an age pension due to money we have in the bank and our super.
We feel that as we paid taxes all our lives we should be getting something. Are we expected to use all our savings before applying again for the age pension? Without knowing exactly what your invested funds are worth, I cannot offer a reason as to why you cannot get the age pension.
Currently, as a couple, if your assessable assets exceed $901,500 as a homeowner couple you would be ineligible. This threshold is currently $599,750 for homeowner singles. Should you have less than this figure in assessable assets, excluding your home, then you should reapply.
The most effective way to do this is through your MyGov account, having the
Centrelink portal linked. Finally, you are not expected to use all your assets before applying for the age pension. Once your assessable assets are below the upper asset test threshold, and you are in receipt of the age pension, simply keep Centrelink updated using your MyGov portal regularly. Your income support will be amended each time you do so.
I am 54, married with one adult child who will live with us long term due to special needs. We own our home (worth about $700,000).
My PSS super has a balance of $800,000. We also have a managed fund with $340,000, $100,000 cash in the bank, and my wife’s super of $120,000.
We anticipate an inheritance this year of about $200,000. My
annual income is $76,000. I get a military pension of $27,500, and have a DVA Gold Card with disability payment of $12,000 a year. I am the sole family income earner. I salary sacrifice $25,000 a year into super. We are considering options to buy another house (maybe up to $1,200,000) to live in and I hope to stop work at 61. Can you offer a suggestion as to how to proceed from here?
It would appear that you are in a secure financial position.
You have sound income from a variety of sources and are demonstrating the ability to save with your salary sacrifice arrangement.
Without knowing what your living expenses are, it’s hard to make significant suggestions. I would suggest you continue to salary sacrifice and look to boost your savings with the managed fund. This offers you diversification, as well as access to part of the portfolio (remembering the super preservation rules).
A financial planner would be able to offer you longerterm super projections – and potential retirement income streams. They can also assist you to review potential DVA income support.