Up to the age of 65, you can also apply the $ 300,000 Bring Forward Rule, which means you can use the NCC caps for three years, i.e. if you leave before the age of 30.
In 2019, the federal government promised you could use the $ 300,000 bring forward until you were 67 years old, but that’s not yet legally regulated.
In the federal budget for 2021, the government has also promised to allow contributions from pensioners and employees up to the age of 75 without a work test.
With an election a long way off, I expect both promises to be fulfilled.
On Seniors Reuniting: The matter is preventing me from moving forward and entering into a new relationship. My potential new partner is threatened with the loss of her only personal income, the old-age pension – she makes her completely dependent on me – because my assets and income exceed the limits permitted for partners when we enter into a relationship. We are 73 and 71 years old and do not expect to go back to work. I have three grown children and two grandchildren. My future partner has an adult daughter and two grandchildren. I have no debt, my house, a new car, an old boat, an investment rental, a taxable, indexed Commonwealth super pension of $ 34,000 per year, a super fund of $ 500,000, and a private mutual fund of $ 150,000 -Dollar. My prospect has $ 80,000 in cash and no other assets. The effect of the law appears to force an older retiree to pay their pension when they partner with a self-funded retiree. I hope you can give her a way to deal with the situation so that she can keep her pension. JG
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I get your point, but you should see mine. I pay taxes and I am happy that the government is helping retirees who haven’t saved up for their retirement. It’s good.
However, should a retiree fall in love with a millionaire, should my taxes continue to be directed there? Many couples rely solely on their partner’s income.
The individual pension is $ 24,770 per year or $ 477 per week, which is likely less than the rent you get on your home. If the relationship doesn’t work, she can always claim her pension back.
Just make sure you both sit down and discuss estate planning.
- The advice in this article is general in nature and is not intended to influence readers’ decisions about investment or financial products. You should always seek your own professional advice, taking into account your personal circumstances, before making any financial decisions.
If you have a question for George Cochrane, send it to Personal Investment, PO Box 3001, Tamarama, NSW, 2026. Helplines: Australian Financial Complaints Authority, 1800 931 678; Centrelink pensions 13 23 00.
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