Retired, Superanuation and Centrelink

[rod1949]

To all retirees. I've been retired for 12 months now and due to a payout I haven't needed to touch my super, I receive a Centrelink aged pension $500 per fortnight. I'm now considering accessing my super. So I'm wondering how/what you people in this same situation did, eg. did you stumble through the process with the assistance of Centrelink or did you use a Financial Advisers (as Financial Advisers cost money I don't want to pay unless really necessary) and if you used a Financial Adviser did they provided any information that could not have been obtained through Centrelink.

[Toymaker Len]

You should be able to access your super without help from anybody. Just contact your fund and ask for a form for withdrawal.

[ian]

To all retirees. I've been retired for 12 months now and due to a payout I haven't needed to touch my super, I receive a Centrelink aged pension $500 per fortnight. I'm now considering accessing my super. So I'm wondering how/what you people in this same situation did, eg. did you stumble through the process with the assistance of Centrelink or did you use a Financial Advisers (as Financial Advisers cost money I don't want to pay unless really necessary) and if you used a Financial Adviser did they provided any information that could not have been obtained through Centrelink.Hi Rod

I'm not quite sure how to phrase this nicely, but do you know what the question you are trying to ask actually is?

variants that spring to my mind are:
go off the pension and live off your super for a period
retain the pensioner's health card while spending your super
maximise your social security pension while drawing down your super
leave as much of your super as possible for another person to inherit after you die
use your super to fund a change in lifestyle or location -- new house, overseas trips, new toys for the shed, a caravan to trip around Oz in.

I'm not sure that Centrelink is the best source of information to help you decide between many of these options. Like all organisations they have a remit and agenda that does not necessarily equate with your desires and needs.

Yes a Financial Adviser will cost money, but if it allows you to do something different or better it would be money well spent.

[cava]

Hi Rod

I'm not sure that Centrelink is the best source of information to help you decide between many of these options. Like all organisations they have a remit and agenda that does not necessarily equate with your desires and needs.


+1 Never trust a government that is broke and your superannuation.

[Moti]

+1 Never trust a government that is broke and your superannuation.

Which government would that be? Fact please not opinion.

[Sawdust Maker]

Tonight's news - I'm wondering what the impact will be on Tuesday

[doug3030]

Which government would that be? Fact please not opinion.

I guess that would depend on your definition of "broke"

[cava]

Which government would that be? Fact please not opinion.
I could fill a tome of facts about how bad the state of Australia's economy is, but you may or may not believe it.

However, consider this; probably one of the best indicators is the various banking law amendments which were passed in two (2) parts - one under Gillard, and one under Abbott at CHOGM(?) in Brisbane which allow for bail-ins of our banking sector by regular depositors. When thinking about bail-ins, think about Cyprus. Regular depositors are now classified as un-secured debitors, which in effect means if the banking system goes belly-up, you will be last in line to get your money.

The banking deposit scheme in place is too little, to be of any use in a compensation environment. Remember the Victorian Pyramid Building Society collapse? It took 26 years for all the depositors to be paid out - so much for the guarantee.

Consider, why did the banks want this provision, if everything was hunky dory?

I could sight others examples, but this really isn't the intended thread for this discussion, so I will leave it at that. However, Evanism has a good thread on it if you want a more detailed response.

Just for the record, this it is not aimed at a single political party, as the major parties are effectively two (2) heads of the same beast. My $0.02 worth.

[ian]

+1 Never trust a government that is broke and your superannuation.my comments re CentreLink apply irrespective of the government's financial position.

Rod has already advised that CentreLink is paying him almost $300 less per fortnight than the maximum aged pension ($794.80 for a single person).
He hasn't said what factors have led CentreLink to pay him less than the maximum.

It's up to Rod what he wants to do with his superannuation.
My point is that CentreLink's job is to pay the maximum pension a person is entitled to, and that's it.
It's not CentreLink's job to advise Rod on how to arrange his affairs to achieve the outcome Rod most desires.

[Sturdee]

Rod has already advised that CentreLink is paying him almost $300 less per fortnight than the maximum aged pension ($794.80 for a single person).
He hasn't said what factors have led CentreLink to pay him less than the maximum.



My experience is that Centrelink will go out of it's way to pay the correct amount so I wonder if Rod is not on an aged pension but (because of the amount) on New Start allowance. Not withstanding that he may consider himself retired it may be that legally he isn't.

Peter.

[ian]

My experience is that Centrelink will go out of it's way to pay the correct amount so I wonder if Rod is not on an aged pension but (because of the amount) on New Start allowance. Not withstanding that he may consider himself retired it may be that legally he isn't.

Peter.Yes, only Rod (and CentreLink) know what his "legal" position is.

I have no doubt that CentreLink is paying Rod the correct amount, but it could be that Rod's other income -- i.e. his "payout" -- is reducing his pension entitlement to $500 per fortnight.
Appropriate financial advice would allow Rod to access his super without compromising his pension entitlements.

[Chesand]

My experience is that Centrelink will go out of it's way to pay the correct amount so I wonder if Rod is not on an aged pension but (because of the amount) on New Start allowance. Not withstanding that he may consider himself retired it may be that legally he isn't.

Peter.

Several years ago, I went to Centrelink with my mother to sort out her entitlements after Dad died. We met with a Financial Information Services (FIS) Officer who was most helpful. He did not advise a particular strategy but outlined the ways of achieving the maximum allowable benefit. If these officers are still within Centrelink it could be a good starting point.

[rrich]

I guess that would depend on your definition of "broke"

Or as our local idiot once put it, "It all depends on what your definition of 'is' is."

[OldGrain]

I retired December 2015.I have reasonable Super.Likewise bank account.I looked into best means to suit my needs through my bank/fin adviser.Pretty good but i looked further.Ended up switching/transfering all funds to a community bank linked to an Investment Fund as well as a Super Fund. These all comply with C-link or as they say -Deeming Accounts.Before the month is out will apply for the Pension which means i`ll get the singles pension plus an agreed amount from my super paid monthly.(My choice).I still have a bank account to withdraw extra if needed.As some here know,i own my own place so am only up for usual utility bills.My one off fee for Financial Adviser - $2500.Small price to pay for guaranteed return & peace of mind. gordo

[doug3030]

My one off fee for Financial Adviser - $2500.Small price to pay for guaranteed return & peace of mind. gordo

Ahh yes, financial advisers.

I spoke to one a few years ago. He told me that if I paid for his advice I would be able to retire in 10 years on more money than I was making at the time.

I asked him how long he had been a financial adviser and he told me 24 years.

"So tell me Chris, why haven't you retired yet if you can tell me how to do it in 10 years", I replied. :oo:

Cheers

Doug

[justonething]

The following info may be of interest. It is not financial advice, just facts and information around the age pension (http://www.superguide.com.au/accessing-superannuation/age-pension-asset-test-thresholds). There are also lots of information with regard to retirement (http://www.superguide.com.au/retirement-planning).

(http://www.superguide.com.au/accessing-superannuation/age-pension-asset-test-thresholds)

[Twisted Tenon]

To all retirees. I've been retired for 12 months now and due to a payout I haven't needed to touch my super, I receive a Centrelink aged pension $500 per fortnight. I'm now considering accessing my super. So I'm wondering how/what you people in this same situation did, eg. did you stumble through the process with the assistance of Centrelink or did you use a Financial Advisers (as Financial Advisers cost money I don't want to pay unless really necessary) and if you used a Financial Adviser did they provided any information that could not have been obtained through Centrelink.


Rod, I'm going to see my accountant tomorrow to begin the process. I'm pretty sure I have my bases covered but will gladly pay an expert to run his eye over my figures. My superfund is doing a good job but does not do the detail stuff.
As you seem to have survived the first year you will have a very good idea what your weekly budget should be. I'm going through the links Justonething supplied but I am next to useless in deciphering this type of stuff. It will be money well spent for the peace of mind for the next 30+ years of retirement. I'm hoping to finish up in December this year.

TT

[Drillit]

To all retirees. I've been retired for 12 months now and due to a payout I haven't needed to touch my super, I receive a Centrelink aged pension $500 per fortnight. I'm now considering accessing my super. So I'm wondering how/what you people in this same situation did, eg. did you stumble through the process with the assistance of Centrelink or did you use a Financial Advisers (as Financial Advisers cost money I don't want to pay unless really necessary) and if you used a Financial Adviser did they provided any information that could not have been obtained through Centrelink.

My short opinion is to act with advice. You need Centrelink's position and then take it and seek advice from a Financial Planner.
You can then assess all information/advice and make decisions based on their recommendations. None of us know or want to know your personal position. But if you think you can and will do what you wan to do, you may disadvantage yourself. Drillit.

[rod1949]

Thanks for all your replies. My main concern was how accessing my super as an Allocated Pension would affect my Centrelink Pension. To day I had a meeting with a Centrelink Financial Information Services (FIS) Officer all my concerns being put to rest which is a relief. The FIS officer was absolutely fabulous to deal with.

So now my question is (if any one wants to respond) to those who have/are on their super pensions what has/is you investment strategy been ie. just gone along with the balanced one offered by you super fund or have you done your own mix based on info provided by you super fund or financial advised?
Thanks.

[ian]

So now my question is (if any one wants to respond) to those who have/are on their super pensions what has/is you investment strategy been ie. just gone along with the balanced one offered by you super fund or have you done your own mix based on info provided by you super fund or financial advised?Rod, with respect this is an impossible question for us to answer.

only you know your risk appetite for investment,
your life expectancy -- based on your age, health, life style (smoker / non-smoker, etc), family history (parents / grandparents lived into their 90s or died in late 60s, etc)
desired annual income (made up of OAP and Allocated pension),
desire to travel, buy new toys for the shed,
provide financial assistance now to any kids or grandkids
leave a "pot of gold" for your heirs
plus lots of other factors.

At the risk of insulting you, do you know what an allocated pension is and how (in your situation) an allocated pension would be funded?
in broad terms do you want an allocated pension that pays a guaranteed minimum amount each fortnight, or one where the amount paid varies based on the investment return achieved by the fund manager?

these are all questions where a financial adviser should be able to help you.

[johnc]

Several years ago, I went to Centrelink with my mother to sort out her entitlements after Dad died. We met with a Financial Information Services (FIS) Officer who was most helpful. He did not advise a particular strategy but outlined the ways of achieving the maximum allowable benefit. If these officers are still within Centrelink it could be a good starting point.

This is a good service and one worth taking up. getting financial advice from a forum such as this will certainly bring out the crack pots and this thread is a good example of that, some posts have good tips some reflect the bias of the individual.

The original poster could start off by actually talking to his superannuation fund, most now provide some information for those over 65. Try to find an adviser who provides an initial free consultation, it may help to decide which direction to head in.