Question 1

We are about to sell our property we have only owned for less than two years to downsize and financially upsize our savings. We are both retired. Can I put the excess funds into super. I currently have a pension account paying the minimum required payment of 5 per cent. The original super account was changed to a pension account and the super account closed. We are both 70 this year. Do I have to return to work to reopen a new super account?

‘Upsize’ your savings. I like it.

As you have only owned your home for two years you cannot use the downsizer super contribution rules.

However, you and your partner could both still potentially contribute funds to super, depending on your super balance, as you are under the age of 75.

You don’t need to return to work to open a new super fund.

You can simply complete an online application from your funds website. Or, give them a call and I’m sure they will assist.

How much you can each contribute is based on your ‘total super balance’ as at the prior 30 June. The ‘total super balance’ includes how much you have in pension as well.

If your balance was below $1.66M then you can contribute $360,000 to super each as a non-concessional (after tax) contribution. Please see the table below:

Question 2

Hi Craig, I turn 67 later this month & my wife turns 54 later this year. I’m wondering if I could be eligible for a part pension with our current assets. Our combined assets total about $1.2 million, which includes both our super funds, an investment property (in my name), share portfolio (both own different shares of about the same value) and some cash.  We are both retired (don’t have any kids).

If you own your principal home (which is not counted by Centrelink) you can still receive a part age pension so long as your combined assets are below $1,031,000 or $1,283,000 if you are non-home owners (and assuming you are assessed under the assets test rather than the income test).

Also note that your wife’s super doesn’t get counted until she turns age pension age (67), assuming she leaves the money in super.

As you have a reasonably large age difference, one common strategy to consider is contributing some funds into her super. This way the money is not counted by Centrelink for another 13 years.

It doesn’t matter whether the funds come from cash, shares, or if you cash out some of your super.

Just ensure you leave enough funds to live off as your wife won’t be able to access her super until at least age 60, and to get the best out of the strategy, until age 67.

There are contributions caps to consider as well.

Using the bring-forward rule you could contribute up to $360,000 in 2024-25 as an after-tax, non-concessional contribution.

You can then not make another non-concessional contribution to your wife’s super for another three years.

Question 3

I’ve just turned 67 working part-time with an annual income of approximately $32K and my partner is 45 working full-time on an annual income of $52K. We have a mortgage of $390K and combined super of $350K, mine being $290K. My question is would I be eligible for a part pension?

Centrelink will apply an income and asset test. Whichever provides the lower benefit is then used.

Given your situation as outlined, the income test applies.

While your partner’s full income is counted, the first $300 of your employment income per fortnight does not get taken into account under what is called the work bonus.

This is intended to encourage older workers to stay in the workforce.

By my calculations you should be eligible for a part age pension of about $150 per fortnight.

Many people don’t contact Centrelink upon reaching age pension age as they believe they may not be eligible.

However, in many circumstances they are, therefore you should apply ASAP as you may be missing out on payments.

Craig Sankey is a licensed financial adviser and head of Technical Services and Advice Enablement at Industry Fund Services.

Disclaimer: The responses provided are general in nature, and while they are prompted by the questions asked, they have been prepared without taking into consideration all your objectives, financial situation or needs.

Before relying on any of the information, please ensure that you consider the appropriateness of the information for your objectives, financial situation or needs. To the extent that it is permitted by law, no responsibility for errors or omissions is accepted by IFS and its representatives.