Younger Partner Retirement

Over the last few weeks we have received lots of comments and questions from customers wondering how their partner’s age and working arrangements can affect their entitlements. So this week we are going to answer some of those questions.

I am 67 and retired but my partner is 60.  Can I apply for the age pension?

The answer is yes.  Your combined assets and income will however be assessed as a couple.  If you are eligible you will receive half of the couple’s age pension entitlement.  When your partner reaches pension age he or she can apply and you will receive your full entitlement as a couple.

My younger partner is still working. Can I apply for the age pension?

The answer to this is the same as the above.  Yes you can still apply.  If your partner is still working then his or her income will be included in the income test for a couple so it could affect the amount you are eligible to receive.

Will my younger partner’s super count towards the asset test?

If your partner is not yet of pension age, and their super is still in an accumulation account, i.e. they haven’t started an income stream, then it is not counted in the assets test. This has led to many people asking the following question…

If I transfer some of my assets to my younger partner’s super could I get more favourable treatment in the assets test?

The answer is yes.  People can use the superannuation “bring forward” provisions whereby their partner could contribute up to $330,000 to their super, if they meet the relevant non concessional contribution rules.. If their partner is not yet of pension age their super will be exempt from the assets test.  This could mean someone that was previously ineligible for the age pension might now receive a part pension and the Pensioner’s concession card, while a part pensioner will most likely receive more age pension.  It is important, however, that you understand the requirements and we suggest you speak to a financial adviser to ensure this approach is right for your financial circumstances.

We would love to hear your comments which you can make below

This article is provided by Retirement Essentials Representative Number: 001260855.  We are an authorised representative of SuperEd Pty Ltd ABN 88 118 480 907 AFSL #468859.  This information is not intended as financial product advice, legal advice or taxation advice. It does not take into account your personal situation, goals or needs and you should assess your own financial situation, consider if the information is suitable for you and ensure you read  any relevant Product Disclosure Statement (PDS) if you choose to make any changes to your financial situation. It is always advisable to consult a financial adviser before making financial decisions.