1.First Question
In order to downsize and increase our savings, we are going to sell the house we have owned for less than two years. Both of us have retired. Can I invest the extra money in super? I currently make the 5% minimum payment required by my pension account. The initial super account was terminated and converted to a pension account. This year, both of us turn 70. Does reopening a new super account require me to go back to work?
"Increase" your savings. I enjoy it.
You are not eligible to apply the downsizer super contribution guidelines because you have only owned your house for two years.
However, since you are under 75, you and your partner may still be able to contribute money to super, depending on your super balance.
Opening a new super fund does not require you to go back to work.
On your funds website, you may easily fill out an online application. Or call them, and they will undoubtedly help.
Your "total super balance" as of the previous June 30th determines how much each of you can contribute. The amount of your pension is also included in your "total super balance."
You can make a non-concessional (after-tax) contribution of $360,000 to super each if your balance was less than $1.66 million. Please refer to the table that follows:
2.Second query
Hello Craig My wife turns 54 later this year, and I turn 67 later this month. With our existing assets, I am wondering if I may qualify for a partial pension. Both of our super funds, an investment property in my name, a share portfolio (we hold several shares of roughly equal value), and some cash make up our combined assets of approximately $1.2 million. Both of us are retired and childless.
You can still get a part-age pension if you own your primary residence, which Centrelink does not count, as long as your total assets are less than $1,031,000 or $1,283,000 if you do not own a home (and assuming you are assessed under the assets test rather than the income test).
Additionally, if your wife leaves money in her super, it will not be included until she reaches pension age (67).
Given the huge age gap between you, one typical tactic to think about is making a contribution to her super. In this manner, Centrelink will not count the funds for another 13 years.
Whether the money comes from shares, cash, or cashing out portion of your super is irrelevant.
Because your wife will not be able to use her super until she is at least 60 and, to maximize the plan, until she is 67, make sure you leave enough money to live on.
Contribution caps are another factor to take into account.
You could make an after-tax, non-concessional contribution of up to $360,000 in 2024–2025 by using the bring-forward rule.
For a further three years after that, you are not permitted to make any more non-concessional contributions to your wife's super.
3.Third Question
I recently turned 67 and make about $32,000 a year working part-time, while my spouse, 45, makes $52,000 a year working full-time. We have a $390K mortgage and a $350K total super, of which $290K is mine. Would I qualify for a partial pension, I wonder?
A test of assets and income will be used by Centrelink. Then, whatever offers the lesser benefit is employed.
The income test is applicable in your case as described.
The first $300 of your working income every two weeks is not included in the so-called work bonus, even though your partner's entire income is.
The goal of this is to motivate senior employees to continue working.
Based on my estimates, you ought to qualify for a $150 per two-week part-age pension.
When they reach pension age, many people do not get in touch with Centrelink because they think they might not qualify.
But in many cases, they are, therefore you should apply as soon as possible to avoid losing out on payouts.
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