How much will my superannuation affect the Age pension?

TL;DR

The video explains how the income and assets tests determine the reduction in aged pension payments based on superannuation and other financial assets.

Transcript

g'day and welcome to this week's video my name is robert gowdy from consorting private wealth and we've got a subscriber question so thank you very much for sending this in and the question is when i retire how much superannuation can i receive as a pension on a monthly basis before it will affect my centrelink payments value so an aged pension the... Read More

Key Insights

• 😡 The income and assets tests determine the reduction in aged pension payments.
• ☠️ Superannuation assets are deemed to earn certain rates, regardless of the actual investment performance.
• ☠️ The income test considers deem rates above specific thresholds for residential homeowners.
• 📼 The assets test reduces pension payments for asset values above certain thresholds.
• 😨 Non-financial assets, such as cars and contents, are exempt from deeming.
• 😡 Transferring superannuation assets to a younger spouse's superannuation in accumulation mode can maximize aged pension benefits.
• 🤕 The Null Whittaker age pension calculator can help calculate deemed income.

Questions & Answers

Q: How does taking out a pension from superannuation affect aged pension payments?

Taking out a pension from superannuation does not directly affect aged pension payments. The income and assets tests determine the reduction in pension payments.

Q: What is the income test for aged pension payments?

The income test considers deem rates on financial assets, including superannuation. Income above a certain threshold will reduce the pension payments.

Q: How does the assets test impact the aged pension payments?

The assets test considers the value of assets, such as superannuation, above specific thresholds. Higher asset values result in a reduction in pension payments.

Q: Is there a way to maximize aged pension benefits for a married couple with a younger partner?

Yes, by transferring superannuation assets as a non-concessional contribution into the younger spouse's superannuation in accumulation mode, those assets become exempt and can help maximize aged pension benefits.

Summary & Key Takeaways

• When retiring, the amount of superannuation received as a pension does not directly affect the reduction in aged pension payments from Centrelink.

• The income test considers deem rates on superannuation assets, and any income above certain thresholds will reduce the pension.

• The assets test considers the value of assets above specific thresholds, with higher asset values resulting in a reduction in pension payments.