Some of the best Age Pension questions we receive at Retirement Essentials come not from people already at eligibility age, but from those in their early-to-mid 60s, planning for what’s ahead.
Whether it’s deciding how to spend super before age 67, shifting funds between spouses, or understanding which records to keep, these members are thinking strategically and making sure they avoid surprises when it’s their turn to apply.
Here are some of the questions we’ve received from people aged 63 to 66 – and the practical advice that can help anyone planning ahead for their Age Pension application.
Anna needs to know:
Q: I’m 65 and need to buy a car before I reach Age Pension age. Will Centrelink want records of that expenditure?
Buying a car for yourself is fine – it’s not classed as gifting. You’ll simply declare the car as an asset when you apply for the Age Pension. However, Centrelink may still want to know about recent large purchases, so it’s sensible to keep receipts.
It’s a good idea to: Keep receipts for significant purchases and to know your expected asset position when you reach 67.
Laurie asks:
Q: I’m 65 and plan to retire at 67. If I spend some of my super on travel or home renovations before then, do I need to keep proof?
Spending on personal enjoyment – including upgrading your home or taking a holiday – is generally fine and not classed as gifting. But if you’re intentionally reducing your assets before applying, it helps to have a clear record of where the money went.
It’s a good idea to:
Keep receipts or simple records of large expenses and to be ready to explain major withdrawals if Centrelink asks
David enquires:
Q: I’m 65 and my wife is 67. She hasn’t been able to get the Age Pension because of my income. Now that I’ll be 67 soon, can we backdate her claim?
Centrelink will only backdate payment to whichever is the latter of either the day you became eligible, or the day you lodged your claim. So if you become eligible after lodging the claim, payment starts from that later date. If your income still exceeds the test limits at 67, your wife’s claim would still be rejected.
It’s a good idea to:
Check your combined income and assets for the relevant period and confirm your eligibility before lodging an application.
Peter is asking:
Q: I’m 66 and my wife is 64. Can I move some of my super into her account so I qualify for the Age Pension at 67?
Yes – this can be a useful strategy because your younger spouse’s super (while still in accumulation mode) remains exempt from the asset test until they reach Age Pension age. But contribution caps and timing rules apply.
Note also that a maximum earnings tax of 15% applies to funds held in accumulation mode compared to 0% tax on earnings for funds held in an Account-Based Pension, so it is important to weigh up the potential additional Age Pension income with any potential earnings that may be paid on funds retained in accumulation mode.
It’s a good idea to:
Check the concessional and non-concessional contribution limits, plan the transfer well before your Age Pension application date and to make sure to factor in your spouse’s future retirement needs as well. Planning your bridge to 67
Retirement Essentials supports people like Anna, Laurie, David and Peter every day – whether you’ve just stopped work, are wondering how long your super will last, or want to check your Age Pension readiness.
You can use the free Age Pension Eligibility Calculator to see when and how you might qualify for the Age Pension.
Or you may prefer to book a Retirement Advice Consultation to review your options, ensure you are on track and feel more confident about the decisions you are taking.
Are there any pre-retirement challenges you are facing?
Or, have you already got your plan worked out?
My wife and I are both 64. Can I open a joint account in the amount 200k, with my daughter to get a better age pension?