Join now
Log in

September 2024 Retiree newsletter

Super recontribution strategy: How it works (including calculator)
Find out how a recontribution strategy can decrease tax for your beneficiaries and help you and your spouse share super balances more evenly. Read more.
Super recontribution strategy: How it works (including calculator)
Find out how a recontribution strategy can decrease tax for your beneficiaries and help you and your spouse share super balances more evenly. Read more.
Case study: Using a super recontribution strategy to reduce death benefits tax
Learn how to reduce or even eliminate the tax your adult children or other non-dependents pay when they receive your super death benefits. Read more.
Case study: Using a super recontribution strategy to reduce death benefits tax
Learn how to reduce or even eliminate the tax your adult children or other non-dependents pay when they receive your super death benefits. Read more.
Commonwealth Seniors Health Card: Eligibility and how to apply
Current eligibility rules, income thresholds and application tips for the Commonwealth Seniors Health Card, plus a video explainer. Read more.
Commonwealth Seniors Health Card: Eligibility and how to apply
Current eligibility rules, income thresholds and application tips for the Commonwealth Seniors Health Card, plus a video explainer. Read more.
Age Pension rates (March 2026 to September 2026)
Age Pension rates are rising again, but how much you actually get depends on your assets and income. Check the latest rates and figures. Read more.
Age Pension rates (March 2026 to September 2026)
Age Pension rates are rising again, but how much you actually get depends on your assets and income. Check the latest rates and figures. Read more.
Age Pension calculator (July 2026 update)
Our Age Pension calculator gives you an estimate of your potential Age Pension entitlements based on your situation, assets and income. Read more.
Age Pension calculator (July 2026 update)
Our Age Pension calculator gives you an estimate of your potential Age Pension entitlements based on your situation, assets and income. Read more.
Age Pension assets test rules (from July 2026)
This article details the rules and limits of the Age Pension assets test (how much your savings and other assets are worth), which is one half of the means test … Read more.
Age Pension assets test rules (from July 2026)
This article details the rules and limits of the Age Pension assets test (how much your savings and other assets are worth), which is one half of the means test … Read more.
Age Pension income test rules (from July 2026)
A common question for those nearing or in retirement is “How much can a pensioner earn before it affects the pension?”. Read more
Age Pension income test rules (from July 2026)
A common question for those nearing or in retirement is “How much can a pensioner earn before it affects the pension?”. Read more

Super decisions at retirement: Income stream, lump sum, accumulation or a mix?

Friday 11 October 2024 at 12:30 pm AEDT

Retirement brings some big decisions, and it’s difficult to know what’s right for you. We cover all the options and their consequences including tax and Centrelink implications, and products that can guarantee income for life.

Q: I am 82 years old and my wife is aged 71. My daughter and her husband wish to mostly pay for a second storey to our house for Inter-generational Living . We would still own the property. My wife intends to contribute $200,000 from her accumulation fund in our SMSF by a lump sum payment. Because our residence is exempt from the Assets test, would the $200,000 lump sum be be not regarded as a gift under the Assets test but as an improvement to our fully owned property.

A: Unfortunately we cannot give advice on your particular situation. However, generally the principal residence including any modifications and additions are exempt from the assets test if the home is fully owned by the pensioner couple and not a third party.

Amounts in a super accumulation account held by a person over 67 are assessable in the income and assets tests, so removing funds from such an account and spending it on home improvements would generally result in a reduction to the amount being assessed and Age Pension may increase as a result. Alternatively, if the withdrawal is used to make a gift, the gifted amount above $10,000 would remain assessable for 5 years before no longer being counted in means tests.

For advice on the specific assets and income test treatment of any arrangement you intend to enter into, it is best to speak with Centrelink directly.

If the cost of living is starting to bite or you’re feeling at a loose end, perhaps you’re thinking about doing some paid work but don’t want to compromise your Age Pension. The good news is you can have the best of both worlds with the work bonus.

Important: All information on SuperGuide is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether any information on SuperGuide is appropriate to you before acting on it. If SuperGuide refers to a financial product you should obtain the relevant product disclosure statement (PDS) or seek personal financial advice before making any investment decisions.

Superguide Pty Ltd ATF Superguide Unit Trust as a Corporate Authorised Representative (CAR) is a Corporate Authorised Representative of Independent Financial Advisers Australia, AFSL 464629.