If you are getting a part Age Pension and have a niggling feeling that you aren't getting the right amount, it could be worth looking further into it to see if you are entitled to more than you are currently receiving.
This couple has saved thousands in fees and received approximately $20,000 more in Services Australia entitlements each year by digging deeper and changing their superannuation structure.
Numbers/background
- Couple: husband 70, wife 60
- Husband receives part Age Pension, wife does unpaid voluntary work
- Value of home: $800,000
- Superannuation (Self-Managed Super Fund (SMSF)): $550,000
- Cash in the bank: $80,000
- Receiving an income of $48,000 p/a ($4,000 p/month) from their superannuation and the husband’s part Age Pension.
Frustrations
- They were unsure if they were receiving the right amount of Age Pension.
- They didn’t understand the SMSF structure and weren’t sure if it was right for them (their Accountant set it up a few years ago).
- They were worried they were going to run out of money and that the wife would need to go back to work.
- They had previously worked with a financial adviser but didn’t feel they were providing much value for their fees.
How we helped
- After becoming their Services Australia nominees, we quickly identified that the couple had been overstating their assets with Services Australia, which meant the husband was not receiving the maximum amount of Age Pension he was entitled to. We updated their assets and income with Services Australia.
- We closed their SMSF and moved them into more simplified and cost-effective superannuation products that were in their best interest.
- We applied to Services Australia for Job Seeker Payment for the wife as she was over age 60 and met the requirements by volunteering.
What success looks like for them
- The husband now receives the full Age Pension, an increase of approximately $10,000 per annum.
- They are saving $10,000 per year in SMSF administration and management fees and no longer have the stress of meeting the SMSF trustee
- requirements.
- The wife receives a Job Seeker Payment of approximately $15,000 per annum and can continue giving back to her community and her favourite charitable organisations through volunteering.
- They can enjoy their retirement doing the things they love, not constantly worrying that their money will run out.
This couple’s story demonstrates the importance of having an experienced team on your side who understand the intricacies of Services Australia payments to help you get your fair share of entitlements.
The difference can mean thousands of dollars in your pocket each year. And let’s face it, you worked hard and paid your fair share of taxes over the years. You deserve every dollar and concessions available to you based on your situation. We’d love to have a chat to see if we can help.
This business is not affiliated with or endorsed by Centrelink or the Australian Government Department of Human Services. The purpose of this website is to provide general information only and the contents of this website do not purport to provide personal financial advice. Denaro Wealth strongly recommends that investors consult a financial adviser prior to making any investment decision. The contents of this website do not take into account the investment objectives, financial situation or particular needs of any person and should not be used as the basis for making any financial or other decisions. The information is selective and may not be complete or accurate for your particular purposes and should not be construed as a recommendation to invest in any particular product, investment or security. The information provided on this website is given in good faith and is believed to be accurate at the time of compilation.