Am I too late to revert to my accumulation phase?

I have had some conflicting advice that has seen my Disability Support Pension drop to under $100 p/f and was wondering if I might have been given the wrong advice from both my old financial adviser and/or the FIS officer at Centrelink. We have a SMSF and when I turned pension age last October, I was advised to keep my disability pension and switch to an income stream drawing from my SMSF. I have some $770k in my SMSF and also $77k in joint assets. My wife will not reach her preservation age for many years. I was advised that I needed to start an income stream from the full amount (approx. $770k) of my share in SMSF hence the drastic drop in my disability pension. I am now wondering if I could have had the option of only converting part of my SMSF to income stream and kept the rest in accumulation phase to maximise my pension entitlement. At 67, am I too late to revert back into accumulation as we were pretty much able to manage on my past

disability pension with a small top up from my SMSF?

Upon attaining Age Pension age, all superannuation assets become assessable for Centrelink asset test purposes whether in accumulation phase of pension phase. This is irrespective of whether you remain on the DSP or commence an Age Pension. So, rolling funds back into accumulation phase is not going to solve your income dilemma from Centrelink. You could consider withdrawing some funds and investing in your wife’s name (as she is under Age Pension age). This would mean that a (currently) assessable asset becomes nonassessed. But you would need to consider preservation, in the knowledge that she can not access funds until meeting a condition of release. You should also take into account the super contribution thresholds when looking at how much to add to super. I would recommend you seek the advice of a professional financial planner before proceeding with this strategy.

I am a full-time student and married. I am 19 years of age. The only income we have is what my husband earns – roughly $2300$2700 net per fortnight. We are paying off a house, our only debt. My husband also has about $30,000 in a savings account earning a little interest each year. As a full-time university

student who doesn’t work at all, am I entitled to any student allowance through Centrelink.

Youth Allowance is available in situations where you are studying and need financial assistance to meet living costs and is for those under age 24. It is subject to an income test. As a couple, if your combined income is more than $1368 per fortnight you would be ineligible.

This should be confirmed with CentreLink.

Brenton is a director and an authorised representative of Goldsborough Financial Services Limited. His advice should be considered as an opinion. Readers should consider engaging their own personal financial adviser. Questions and answers may have been edited for length.