Work on to avoid inheritance becoming taxing issue
YOUR ADVICE I recently turned 65 and will soon receive an inheritance of $ 300,000. I would like to invest the money and use it to help my children purchase property in future. I have other funds invested in the balanced option in superannuation, but would need to pass the work test to invest the inheritance there as well. Is there anywhere else I can invest these funds outside super that would have a comparable risk and after tax return?
If you have substantial assets in superannuation now, it would make good sense to find work for a short time to enable you to make non- concessional contributions over the next two years. Remember, after June 30 your concessional contributions will be limited to $ 100,000 a year.
Superannuation is not an asset class like property or shares, but merely a vehicle that lets you hold assets in a low- tax area. The kind of assets that should be held by the fund to provide the risk and return you are seeking should be discussed with your adviser. I AM 62 and work on a casual basis. Do I need to be fully retired to convert my super to pension phase, and would receiving this pension have an impact on my eligibility for Centrelink payments?
If I did convert to a pension from super, would my total super balance be regarded as an asset for the asset test by Centrelink, or does this only happen when I reach pensionable age?
Anybody can convert their superannuation to pension phase after reaching their preservation age. Money in super in accumulation mode is not assessed by Centrelink until the member reaches pensionable age; however if the super fund is in pension mode it is assessed immediately. MY wife is 54, retired, and her preservation age is 57. She has $ 380,000 in super, and receives no income from any other source. Can she start a pension from her super? I understand she can start a pension, and tax is paid on the marginal tax rate even though she is under the preservation age. Is this correct?
She cannot start a pension until she reaches her preservation age. When she starts a pension, the taxable component of the pension amount will be taxed at her marginal rate, plus Medicare levy, less a 15 per cent offset.
NOEL WHITTAKER Anybody can convert their superannuation to pension phase after reaching their preservation age
I AM a pensioner aged 73, and my partner is 58. She will