Amanda Hardy Lai, Author at Retirement Essentials

When Age Pension meets advice: Understanding granny flat arrangements

by Amanda Hardy Lai | Centrelink Age Pension

There’s a lot to think about when someone considers moving in with family or giving money to help build a granny flat or home extension. For older Australians, these decisions often involve a deep mix of personal, financial, and practical factors – but the outcomes can affect Age Pension entitlements in ways that aren’t always obvious.

Centrelink calls these arrangements ‘granny flat interests’ – not because of the building itself, but because of the legal and financial interest created when you exchange money, assets, or ownership rights for a place to live for life.

This article unpacks some of the most important considerations – from gifting rules to homeowner status, and highlights the value of getting the right advice before going ahead.

Consolidating your super: All you need to know

by Amanda Hardy Lai | Superannuation

Whether you’re approaching retirement or already there, consolidating your super can be one of the simplest and most powerful steps to strengthen your financial position. But surprisingly, many Australians either delay it or aren’t sure where to begin.

Why it matters is simple: having multiple super accounts can quietly erode your retirement savings. Each account may be charging its own set of fees and insurance premiums. Over time, that duplication can cost you thousands – money that should be working for your future.

But the benefit of consolidation isn’t just about savings fees. It also brings clarity. When all your super is in one place, it’s easier to track your balance, review your investment mix, plan contributions and make informed decisions about retirement income options. Whether you’re just starting to plan your retirement or you’re getting ready to draw an income, having everything in one fund makes life easier.

Another often-overlooked step is checking for lost super. It’s more common than you might think – especially if you’ve changed jobs, moved house, or changed your name at any point. According to the ATO, there are still billions of dollars in unclaimed super across Australia. A quick search using your myGov account can help reunite you with money you didn’t even know was missing (here’s how to get started).

When retirement income is much more than the Age Pension and super

by Amanda Hardy Lai | Retirement Income

Your retirement income could come from one or more of many different sources. Perhaps it’s made up from a super drawdown, or part Age Pension entitlement, work income, share dividends, franking credits, interest on investments, rent from an investment property … the list goes on.

Or, you may be like Darren, who receives the bulk of his income from a Defined Benefit Pension (DBP). He recently asked us to explain the way a wider range of retirement income inputs might combine to create a reasonable retirement lifestyle. Here’s how we explained the way these different sources of retirement income work together.

Retiring with a Defined Benefit Pension

Defined benefit income streams aren’t as common as they once were. Decades ago, they were standard for many public servants and professionals, offering a regular income for life based on salary and years of service. However, these schemes posed significant financial risk for employers, who were essentially on the hook for making lifetime income payments. Over time, this has led to their gradual phase-out in favour of the accumulation-style superannuation where the investment and longevity risk sits with the individual.

If you’re retiring with a defined benefit income stream today, you’re part of a smaller group. These pensions are assessed differently for both tax and Centrelink purposes, so it’s worth taking the time to understand how they interact with your other retirement income sources – especially if you’re also eligible for the Age Pension or managing an Account-Based Pension.