How Your Superannuation Affects the Age Pension
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- เผยแพร่เมื่อ 21 ต.ค. 2024
- In this video, I share crucial insights on how your superannuation impacts your entitlement for the Age Pension in Australia.
Understanding this interaction is a key component of effective retirement planning. We will explore how both the Assets Test and Income Test assess your superannuation and influence your Age Pension eligibility and payments.
Key Points Covered:
🔷 Overview of Age Pension Eligibility: Learn about the qualifying age and how the Government Age Pension works alongside your superannuation.
🔷 Account Based Pension Benefits: Discover why many Australians convert their super into an Account Based Pension and the tax advantages it offers.
🔷 Superannuation's Impact on Age Pension: Understand how superannuation is assessed under the Assets Test and Income Test, including the deeming rules and thresholds.
🔷 Detailed Breakdown of Tests:
🔷 Income Test: Explanation of deeming rates and how your income is calculated for pension eligibility.
🔷 Assets Test: Overview of asset thresholds for full and partial pension eligibility.
🔷 Personal Exertion Income: How additional income from work affects your pension.
By the end of this video, you'll have a clearer understanding of how to optimise your superannuation and Age Pension benefits for a comfortable and secure retirement.
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#Retirement #AustralianRetirement #RetirementPlanning #RetireInAustralia #Superannuation #Super #AustralianExpats #AussieExpats
About Jarrad Brown:
Jarrad Brown is an Australian-trained and experienced Fee-Based Financial Planner with the Australian Expatriate Group of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to Australian expatriates in Singapore. Subscribe to this TH-cam channel for his latest tips and updates for Australian expats when it comes to making informed financial choices for their time abroad. Jarrad Brown is an Authorised Representative of Global Financial Consultants Pte Ltd - No: 200305462G | MAS License No: FA100035-3
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General Information Only: The information on this site is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.
*Please note that Jarrad Brown is not a tax agent or accountant and none of the content outlined here should be taken as personal advice. You should consult your tax agent and financial adviser to review your current personal finances and financial goals to consider whether this strategy is appropriate for you.
Hi Jarrad, providing some examples or case studies would go a long way to understanding this better.
Thanks for the note Steve.
@@AustralianExpatFinance examples for singles ?
@@pamelahirst9493 Stay tuned - I'll release a video with some case studies for you.
@@AustralianExpatFinance
Also for single renters please
@@JennySims-b4w Certainly - stay tuned.
Great video, not too long and very precise, thank you
Thank you for the feedback - I really appreciate it.
Thank you for sharing these valuable information.
Thank you for your kind words - I appreciate it.
Hi Jarrad , we have been drawing down on our super for the last 10 years . When we first retired , that would have lasted for about 20 years on (then) figures combined with a part gov. pension . It then went down like the Titanic for most of us in having not much left by now . The question is : why are we still not getting a full pension ? Our total asset base ( incl. super ) is less than $ 200.000 . Pls advise . Thanks
Thank you for sharing here. The asset test threshold for a couple who own their own home for a full pension is currently $470,000. I would suggest reaching out to your Centrelink office and discussing your options with them. Hopefully they can provide you with some updated guidance here.
Hi
Your video is highly informative
My husband is 74 and is working and we get a part pension. However should he leave his super on pension phase or accumulative phase. Iam told in accumulation phase the super is taxed 15% and pension phase 0%
Thank you for the kind words and your question.
You are correct with regard to the tax savings in pension mode relative to accumulation phase, so in most cases, this would be the sensible option. However, I would suggest reaching out to your Tax / Financial Adviser to explore if there are avenues to increase your pension entitlement or optimise your retirement income further.
Hi, wondered how a Commonwealth Super Scheme retirement income is assessed. I also only own a third of my home as my son bought out my late wife's share when she died so I would have no issues from split family. Thank you. They chopped my aged pension when she died. Thankyou.
Thank you for sharing here. Often retirement income streams are assessed as income for means testing, but given the complexities of your situation, I would certainly suggest it's worthwhile you reaching out to your Financial Adviser to review your situation in detail.
Hi Jarrad,
Employers don't need to make CPF contributions for their foreign employees. My question is, do Oz foreigner employee have to make superannuation contributions?
Great question. In many cases, yes they do but it’s important to review the contract, employment type and visa.
if one have Gold buried somewhere. Would that be considered assest??? or out of sight out of mind?????
Sadly, I don’t believe the at ‘out of sight, out of mind’ applies to means testing 😉
@@AustralianExpatFinance how would they know if people dont report?
@@yenriver5255 It would be no different to earning income overseas and not reporting it (also not recommended). The onus is on the individual to report and non-disclosure of assets that are required to be reported could result in fines or penalties.
@@AustralianExpatFinance FYI I lost 1 oz of gold coin in the garden and havent found it. I thought of buying a metal detector but its not worth it. I remain poor.
@@yenriver5255 I'm sorry to hear that - hopefully it turns up and makes your day.
I fear that the govt will change the rules on home ownership and or how much in assets you can have and still receive a full aged pension. I am 56. Any thoughts?
Thank you for your question, Shane, and I appreciate you taking the time to check out the video.
While change is the one certainty in life, when it comes to the Asset and Income Tests for the Age Pension in Australia, the thresholds are typically indexed each year. You can actually view the historical limits via the DSS website (guides.dss.gov.au/social-security-guide/4/10/3).
As you get closer to your retirement age, I would certainly suggest monitoring these limits, and reviewing your plan, either yourself or with your professional Adviser, to ensure that you're on track to maximise any entitlements you can.
@@AustralianExpatFinance thanks
How do you calculate your assets when your receiving a lifetime super from the old government pension scheme? Asking for a friend. Is currently receiving around $1800 per fortnight?
Thank you for your question here. This would typically be assessed as an income stream under the means testing (you can find out more here - www.dss.gov.au/seniors-budget-measures/means-test-rules-for-lifetime-income-streams), but I would definitely suggest reaching out to Centrelink to explore the options here for your friend.
A great video. If one gets a, super pension, can one get the mature age pension? Is the mature, age pension tapered down? Thanks.
Great question. When your super becomes accessible it forms part of your assets and income test, so could impact your pension eligibility.
Great jarrah to educate
Thanks for the feedback.
Great video, Jarrad
Thank you Hayden.
G'day. I'm currently in receipt of 2 Fed Govt pensions (Defence Force and APS) as I receive fortnightly payments I can not withdraw the 'total' amount of this super. How will this affect my entitlement to the Age Pension?
Cheers 🍺
Thanks very much for your question.
At first glance, if this is not the DVA Service Pension, then it's likely that other pension payments would impact the income test. However, in most costs, the DVA Service Pension is paid in place of the Age Pension, rather than receiving both.
It may be worth first speaking with DVA here and seeking some personal advice to ensure that you're receiving everything you're eligible for.
@@AustralianExpatFinance
G'day again. Nope these pensions (even though as per the Tax Dept they're salaries as I get PAYG every year) have nothing to do with DVA.
The first pension (super) is from the Defence Force after 20 years of fulltime service, whilst the second one is from the APS for being medically retired before retirement age (Invalidity Retirement). I'm deemed as being "Totally and permanently incapacitated" to work.
With the Invalidity retirement does this make me eligible for the AP before retirement age as I am unable to work anymore?
Cheers 🍺
@@TheSenutyenool Thank you for clarifying. A Disability Pension (which typically transitions into an Age Pension at the relevant age) could apply, but is also means tested.
To assess your own situation, I would suggest reaching out to Services Australia directly to go through your assessment and your options here. Hopefully, additional support payments can be identified for you given your 20 years of service.
@@AustralianExpatFinance
Okay, thanks very much Jarrad. Will battle the wait queue and lose an arm and a leg paying for the overseas call to them.
Cheers 🍺
@@TheSenutyenool Wishing you every success here, and hopefully a positive result.
I cleaned out my super during COVID,when my employer passed away,then my fiance's parents passed then i lost my home...so by retirement ill probably perish,Lucky country
SO true, you work payed 60% in tax and now go away. Lucky 😡🇦🇺🛫
If you don't have superannuation but you decide to move to a smaller place and invest your money. BE VERY CAREFUL because under the government LIKES TO TAX YOU UP TO 40% of your PENSION(ASSETSTEST) . This will leave you little in terms of what you will receive if you are single to will find that what you think is a FULL PENSION of $29,710.20 p/ann it will be reduced to $17,427.8 p/ann, a lose of $12,282.40p/ann. This shows how vicious and discrimination the Australian government treats their own retirers people.
Thanks for your note.
It certainly highlights the importance of appropriate planning and advice with regard to the impact of financial moves on your assets and income test in Australia, as this can significantly impact your pension entitlements.
So sad, l worked as a school bus driver from 2020 to 2023, K19 and l found out that a school bus co, didn't pay my superannuation and my Tax 😭😭😭 l call them that should call, l didn't get any help, So how can you help me with my situation please ???😢😭😭😭😡😡😡
Thank you for your message. It sounds like you should be speaking with your past employer, and if they can't be of any assistance, then directly with the Australian Tax Office to explore your options here. Employers in most instances have an obligation to pay super.
How about going to your Fed Member. We had an incident where they took
all of my husbands superannuation. and we
only get $100 pension a fortnight. That’s not much. 3 days later it was all in the bank. Everything was put right. It’s worth a try.
If employers don’t pay it they can be $10,000dollars.
@@margarethennessey2583 Employers can face much harsher penalties than this, factoring in unpaid superannuation, accrued interest and administrative penalties.
@@margarethennessey2583 - thanks for sharing, and I'm glad to hear you were able to get this resolved from the sounds of it.
Small companies are not obligated to pay super thst s why you have to pay you own super as salaries sacrifice.
You may be referring to sole traders or partnership set-ups here. The majority of employees working for companies in Australia will be in a position where their employer is obligated to make super contributions.
It's important to consider this when exploring any salary sacrifice arrangements.