You will only be entitled to old age pension at age 67, and until then your accumulation funds – but not pension funds – are ignored by Centrelink’s means tests. This could allow you to access the JobSeeker benefit, formerly Newstart, although there may be certain conditions related to work, possibly volunteer work.

At today’s rate, a partial annuity would earn you around $ 25,000 per year, which would allow you to reduce your super annuity to a minimum of 5% of assets at age 65 to 74, thereby extending the duration of your pension.

You make about 9% of your super per year while earning 7%, so the fund is slowly depleting.

You could earn more in a “balanced” fund, which has fewer fixed interest assets than a “conservative balanced” fund.

My husband is 84 years old, suffers from dementia and is in a retirement home. I am 85 years old and I receive an old age pension. What concerns me is that if I die before my husband, all of our possessions – our house and my husband’s pension containing $ 200,000 plus our $ 20,000 in cash – will be returned to the nursing home? nurses? This means that my children will not inherit anything. Can I make a new will leaving amounts equal to five children? The house is in common names, as is the bank account. Children have powers of attorney, etc. for my husband and me. My husband is in fairly good health, which means he will probably survive me. PH

I see what you mean.

As long as you stay in the house as a ‘protected person’, its value is ignored when calculating both the old age pension and the lump sum of the retirement home’s refundable accommodation deposit (RAD), as well. than its current income and asset-based fees.

If you die before your husband, since the house is jointly owned, your husband will automatically become the sole owner, regardless of your wishes.

The old age pension means test will ignore the house for the next two years and then count it entirely, with your husband treated as a non-owner.

With some $ 220,000 in other assets, if the house is worth more than about $ 580,000 (these thresholds change about every six months), he would lose the old age pension.

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Once he becomes a full owner of the home, the nursing home’s charges would also be recalculated, although only a “capped” or maximum value – currently $ 173,075 – is factored into the charges. course according to resources. Until then, he may not have had to pay a hosting fee, either in the form of a lump sum deposit, or ARD, or in the form of regular interest payments on the unpaid ARD, called Payment. Housing worker (DAP).

I wouldn’t worry about the kids losing everything.

In your absence, the children will have to decide whether to sell the house or rent it. If the house is not sold, they will eventually inherit it. If it is sold and a sum of money is paid out as ARD, it is fully refundable and guaranteed by the government.

If you have a question for George Cochrane, send it to Personal Investment, PO Box 3001, Tamarama, NSW, 2026. Help lines: Australian Financial Complaints Authority, 1800 931 678; Centrelink pensions 13 23 00. All letters replied.



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