It’s a common concern for many of our Retirement Essentials community members: how will receiving an inheritance impact their Age Pension benefits? With people living longer, it’s increasingly common to receive an inheritance later in life, often during retirement while already receiving pension payments.
If you find yourself the recipient of a lump sum inheritance, or any significant financial windfall, it’s crucial to understand the potential consequences for your pension entitlements. Being aware of these rules can help you avoid unexpected reductions to your payments or even the need to repay overpaid funds.
One of the most important steps is to inform Centrelink promptly, specifically within 14 days of receiving any lump sum. Failing to notify them within this timeframe can lead to overpayments, which can create financial strain if those funds have already been used.
Does Graham have to tell Centrelink even if the money is being deposited into his partner’s superannuation account?
We recently received a question from Graham, who is in a similar situation: “Do I need to advise Centrelink of an inheritance I am receiving (I receive a part-pension) if I plan to contribute the entire amount to my partner’s superannuation account? My partner is 61 years old and still working, with their superannuation in the accumulation phase.”
Retirement Essentials adviser Amanda Hardy Lai addresses Graham’s specific query in the video below.
