In this guide
- 1. Not being aware of your entitlements to pensions and benefits
- 2. Not updating your Will, or having inadequate estate planning
- 3. Not preparing your SMSF to pay an account-based pension
- 4. Not reviewing your investment strategy
- 5. Not managing your superannuation balance or understanding the transfer balance cap
Some people have been waiting their whole lives for retirement, but for others it may not be something they’re looking forward to. Not everybody wants to finish working, and there is always the question of how difficult it may be to fill a day when the initial novelty of doing what you want, when you want, wears off.
There is also the concern that your money may run out.
As the stress and worry build up, it’s easy to make mistakes. Here we take a look at five of the most common ones and how to avoid them.
1. Not being aware of your entitlements to pensions and benefits
Self-managed superannuation trustees are very used to doing everything themselves and some may not be aware that, even with a reasonable-sized super balance, they could still qualify for a small Age Pension payment and access to discounted services.
Even if receiving a very small Age Pension amount per fortnight, a Pensioner Concession Card will get you cheaper vehicle registration, rebates on electricity and gas, and cheaper rate payments.
Learn more about how your superannuation impacts access to the Age Pension.
People who are ineligible for the Age Pension could still meet eligibility criteria for the Commonwealth Seniors Health Care Card, which means they can access cheaper prescribed medicine and other medical benefits.
Good to know
The income limits for the Commonwealth Seniors Health Card are higher than the limits for the Age Pension and there is no assets test.
The income test limits are:
- $90,000 a year if you’re single
- $144,000 a year for couples
- $180,000 a year for couples separated by illness, respite care or prison.
An additional $639.60 can be added to these amounts for each child in your care.
Like most things with Centrelink, applying for these benefits may not be an easy task so it’s important not to put it in the too-hard basket when it becomes difficult, as the end result will make a difference to your comfort in retirement.
Learn more about the Age Pension and the Commonwealth Seniors Health Card.
