James Coyle

James has over 35 years experience in financial services with particular expertise in two of the key components of retirement finance - Superannuation and the Age Pension. He is passionate about providing the guidance and support that can help older Australians enjoy their best possible retirement. He lives in regional Victoria surrounded by dogs and chooks.
Your assets test questions answered

Your assets test questions answered

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Two weeks ago we explained how the assets test works and how different assets can be treated very differently by Centrelink. At the end of this article, we asked if you find these rules confusing and you certainly answered – in the 70 comments which followed.

Because there are so many different rules, it’s impossible to cover each and every instance. But given the many different types of assets that people may own, today we wanted to share some of the specifics on investment properties, foreign pensions, household contents, exemptions and more. Here are the answers that our team (led by Guru Steven Sadler) gave to questions on these concerns.

When should you retire?

When should you retire?

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Your retirement age is a very personal thing.  Sometimes retirement is thrust upon us.  We might lose our job or be forced to leave work due to ill health or caring responsibilities.  Most people, however, are in the fortunate position of being able to choose when to retire.  

The many people I have talked to on this subject usually put the decision down to one or two key factors.

‘I want to keep working while I still enjoy my job, while I am still able to do it well and feel productive’ 

‘I want to retire as soon as I can afford to do so’

The first reason is extremely important.  You are a long time retired so feeling productive and that you are making a difference matters to a great many people.  But you don’t necessarily need to keep working to achieve that.  Hobbies, time with family and volunteering are just some of the many ways people can feel they are making a contribution. And others just relish the free time to do more of what makes them happy.  Just as there is no need to retire if you are happy and love your job, there’s also no need to keep working in a job you dislike if you can afford to do something else.

Could an inheritance affect your entitlements?

Could an inheritance affect your entitlements?

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Linda and Helen are sisters in their early 70s. They both live in their own separate homes and receive the full Age Pension entitlement. Neither has a mortgage. Their uncle died recently and they were both surprised to receive $200,000 each.

Linda used her inheritance to renovate, installing a stair lift and generally ‘age-proofing’ her home. The balance after renovations was $40,000 so she contributed this to her super. Helen didn’t see the need for such renovations in her home, preferring instead to put the full amount into a 12-month term deposit account so that she can use the extra interest earnings to top up the somewhat modest Age Pension entitlement of $29,754. She was shocked to be informed by Centrelink that she is no longer entitled to the full fortnightly benefit and will now receive a part-Age Pension instead.

Helen was very stressed when she contacted Retirement Essentials, still struggling to understand how the same inheritance amount could cause her loss of full Age Pension entitlements while her sister, as she said, ‘ got off scott free’. ‘How can this same amount be treated so differently’, she asked?