Social security
The rules surrounding pensions and social security assets and income tests can be complex.
For social security purposes here are some issues for consideration:
- The amount you invest is generally taken into account for asset test purposes;
- Any pension payments less a deductible amount (representing a return of capital), are taken into account for income test purposes;
- Any commutation payments are not taken into account for income test purposes (although the deductible amount may vary after the commutation).
You may want to contact Centrelink and seek financial advice to ensure you make the most of your retirement savings and any social security entitlements you may have.
More information
Centrelink has a range of publications and services for retirees and people planning for retirement.
The National Information Centre on Retirement Investments has a publication on retirement income streams and a range of other information for individuals who are investing for their retirement.
Australian Securities Investment Commission (ASIC) provides a retirement plan calculator on its FIDO website (www.fido.gov.au), which allows you to work out how much you could save in superannuation until you retire. The calculator also works out how much can be drawn down out of super in retirement and finally, it also works out how much of the Governments Age Pension you may be eligible to receive.