Why is it that all the advice I've seen is about transferring super into my younger spouse's account? I have spent my whole life working to accumulate a minimal amount of super and I am the one trying to budget for our future, whereas my (younger) husband is all about spending whatever he can get his hands on. I may not be alone in this situation, but I am definitely not giving him my future income, when I know I'll be supporting him after he's spent all of his ... LOL
Haha! Sounds like you need to teach him a thing or two about managing money! You definitely don't have to transfer money to a younger spouse and shouldn't if you're not comfortable in doing so. It's just an option that can result in higher Age Pension payments in some circumstances.
Hi Chris. You made a suggestion to move your super into your spouses account to qualify for pension. Does Centrelink not look at your spouses super, their income and any other assets when being assessed?
Hi Chris, yes, if the younger spouse is going to continue to work, it could impact Age Pension payments under the income test. However, there are many younger spouses under Age Pension age who will not be working, or may decide to no longer work as a result of this strategy.
Hi Chris and thanks for your videos - very concise and informative. Question pls - is a super income stream tested on both the Asset and Income tests for Aged pension purposes? I initially thought it is only included in the deeming calculation for Asset test, but looks like the pension received from pension phase is included in the income test as well (meaning the full amount of the pension is regarded as an income)? Appreciate your usual great advice on this. Thank you.
Hi Jojo, a superannuation income stream is assessed for both Income and Assets Test purposes. The balance of the pension counts towards the Assets Test and the amount deemed from the income stream (not the actual income) is assets under the Income Test. The only exception to this is if its a grandfathered pension superguy.com.au/grandfathered-account-based-pension/.
Thanks Chris, Valuable info as always. If after declaring yourself retired for the purposes of accessing your Super does your super balance automatically move to pension phase. If not you could you potentially access lump sums instead of an income stream and avoid your super being assessed in the income/asset tests? Cheers
No problem, glad you find it valuable! No, satisfying a retirement definition simply changes the status of your super from 'preserved' to 'unrestricted non-preserved' (provided you notify your super fund). It will not automatically move to pension phase - it can stay in accumulation indefinitely until you choose to start a pension. Therefore the accumulation balance will not be assessed while you are under Age Pension age . Keep in mind though, if you make regular withdrawals, Centrelink may view these as income for income test assessment based on the definition of 'income'; but ad-hoc, irregular withdrawals are generally okay.
I am looking for ways to optimize my Age Pension entitlements while ensuring legal compliance, I have heard from CZcams channel which is to contribute super to my younger spouse in order to legally hide money from Centrelink Age Pension. I already at Age Pension age while my partner is several years away. I just want to found out for Centrelink purposes, will this action to be seen as Gifting? And it’s not benefit to optimize my Age Pension entitlements within a period of 5 years. Thanks for your kind advice.
Ultimately Centrelink will determine how certain transactions are assessed. However, I have not experienced them treating such a transaction as Gifting. You should seek advice from Centrelink around this.
Great risk of moving most the super into spouse's account is as you said: it becomes my spouse's money and I have lost control of it forever unless I file for divorce. Worst case is the spouse withdraws all money without me knowing and spends it. Even if the marriage is intact, the spouse holds the purse string for the rest of my life! Can super guy suggest any way to regain control of the money myself?
Hi Sam, yes, this is a risk. If this is of concern to you, then you might decide not to utilise this strategy. There is no way to regain control of the money yourself unless your spouse were to withdraw it from super and give it back, but then it may be difficult for you to recontribute it into super, depending on your age and the contribution caps.
Is it best for me to leave it in Accumulation Phase till I need it, like small lump sums, instead of a Income steam, I’m not forced to take the 6.5%, I know I will be paying 15% tax but I got a full pension from Centrelink, till I ready to change my investment, as I like your idea, of moving it to Moderate investment, so I can set and forget and get on with my retirement
There's no right or wrong answer and your personal circumstances will dictate what the best thing for you to do is. Like you say, leaving in accumulation phase ensures you don't need to make any unnecessary withdrawals, but tax on earnings will be deducted from your balance. You may consider personal advice to optimise your overall position - it's up to you. We offer this through our practice, Toro Wealth www.torowealth.com.au/
Hi Chris, I'm contemplating retirement next year, from FT work reaching 67 in April. Then I'll be eligible to a part pension. Can I apply for that pension at my 67th birthday in April, so Centrelink will start paying me or do I have to wait until the end of F/Y 2024/2025 bcs I earn income from employment during the year?
Good question. You can actually submit your application for the Age Pension up to 13 weeks prior to turning 67. You do not need to wait until a new FY. The income test is assessed based on your income at that exact time, not what you have earned over the course of the year.
Why is it that all the advice I've seen is about transferring super into my younger spouse's account? I have spent my whole life working to accumulate a minimal amount of super and I am the one trying to budget for our future, whereas my (younger) husband is all about spending whatever he can get his hands on. I may not be alone in this situation, but I am definitely not giving him my future income, when I know I'll be supporting him after he's spent all of his ... LOL
Haha! Sounds like you need to teach him a thing or two about managing money! You definitely don't have to transfer money to a younger spouse and shouldn't if you're not comfortable in doing so. It's just an option that can result in higher Age Pension payments in some circumstances.
Hi Chris. You made a suggestion to move your super into your spouses account to qualify for pension. Does Centrelink not look at your spouses super, their income and any other assets when being assessed?
I don't have a spouse but could I gift some to my children?
Won't Centrelink ask why we transferred back into accumulation? I accidentally took out tpd lump sum
the problem is i guess if your spouse is younger they are likely continuing to work and their income might make you ineligible
Hi Chris, yes, if the younger spouse is going to continue to work, it could impact Age Pension payments under the income test. However, there are many younger spouses under Age Pension age who will not be working, or may decide to no longer work as a result of this strategy.
Hi Chris. Iam now 54 and checked my msbs super. In 20 years all i have to my name is $45,000!!. Very dissaponted. Any suggestions?. 🤷♀️
Hi Chris and thanks for your videos - very concise and informative. Question pls - is a super income stream tested on both the Asset and Income tests for Aged pension purposes? I initially thought it is only included in the deeming calculation for Asset test, but looks like the pension received from pension phase is included in the income test as well (meaning the full amount of the pension is regarded as an income)? Appreciate your usual great advice on this. Thank you.
Hi Jojo, a superannuation income stream is assessed for both Income and Assets Test purposes. The balance of the pension counts towards the Assets Test and the amount deemed from the income stream (not the actual income) is assets under the Income Test. The only exception to this is if its a grandfathered pension superguy.com.au/grandfathered-account-based-pension/.
@@SuperGuyAu Perfect, as clear and concise as your presentations. Thanks Chris!
Thanks Chris,
Valuable info as always. If after declaring yourself retired for the purposes of accessing your Super does your super balance automatically move to pension phase. If not you could you potentially access lump sums instead of an income stream and avoid your super being assessed in the income/asset tests?
Cheers
No problem, glad you find it valuable! No, satisfying a retirement definition simply changes the status of your super from 'preserved' to 'unrestricted non-preserved' (provided you notify your super fund). It will not automatically move to pension phase - it can stay in accumulation indefinitely until you choose to start a pension. Therefore the accumulation balance will not be assessed while you are under Age Pension age . Keep in mind though, if you make regular withdrawals, Centrelink may view these as income for income test assessment based on the definition of 'income'; but ad-hoc, irregular withdrawals are generally okay.
I am looking for ways to optimize my Age Pension entitlements while ensuring legal compliance, I have heard from CZcams channel which is to contribute super to my younger spouse in order to legally hide money from Centrelink Age Pension. I already at Age Pension age while my partner is several years away.
I just want to found out for Centrelink purposes, will this action to be seen as Gifting? And it’s not benefit to optimize my Age Pension entitlements within a period of 5 years.
Thanks for your kind advice.
Ultimately Centrelink will determine how certain transactions are assessed. However, I have not experienced them treating such a transaction as Gifting. You should seek advice from Centrelink around this.
Great risk of moving most the super into spouse's account is as you said: it becomes my spouse's money and I have lost control of it forever unless I file for divorce. Worst case is the spouse withdraws all money without me knowing and spends it. Even if the marriage is intact, the spouse holds the purse string for the rest of my life! Can super guy suggest any way to regain control of the money myself?
Hi Sam, yes, this is a risk. If this is of concern to you, then you might decide not to utilise this strategy. There is no way to regain control of the money yourself unless your spouse were to withdraw it from super and give it back, but then it may be difficult for you to recontribute it into super, depending on your age and the contribution caps.
Sam,
Sounds like you may have bigger problems
than how to hide money from Centrelink.
Just saying.
Shallow graves are not a successful method
Is it best for me to leave it in Accumulation Phase till I need it, like small lump sums, instead of a Income steam, I’m not forced to take the 6.5%, I know I will be paying 15% tax but I got a full pension from Centrelink, till I ready to change my investment, as I like your idea, of moving it to Moderate investment, so I can set and forget and get on with my retirement
There's no right or wrong answer and your personal circumstances will dictate what the best thing for you to do is. Like you say, leaving in accumulation phase ensures you don't need to make any unnecessary withdrawals, but tax on earnings will be deducted from your balance. You may consider personal advice to optimise your overall position - it's up to you. We offer this through our practice, Toro Wealth www.torowealth.com.au/
Hi Chris,
I'm contemplating retirement next year, from FT work reaching 67 in April. Then I'll be eligible to a part pension. Can I apply for that pension at my 67th birthday in April, so Centrelink will start paying me or do I have to wait until the end of F/Y 2024/2025 bcs I earn income from employment during the year?
Good question. You can actually submit your application for the Age Pension up to 13 weeks prior to turning 67. You do not need to wait until a new FY. The income test is assessed based on your income at that exact time, not what you have earned over the course of the year.
@@SuperGuyAu thank you Chris.🙏
Nice one 🙏
no good for me. No spouse
Hi Ray, sorry this one couldn't help. Hopefully some of my other videos are beneficial to you. I'll be adding more regularly. Chris
same - no spouse!
@@jennijeremy370 have you met ray?
It’s like when Mr Bob Marley sang, “ No woman, no cry!” 😂 being single is bliss ..🎉
😂😂😂👍@@hardy9429
not good for me either.spouse is a moron.he spends and im the one with big savings.im not giving him a cent.he can go wonder.i dont care.hehe