Would extra super payments be assessed by Centrelink and affect the Age Pension?
Lyn has been unable to accept a pay increase as it would affect both hers and her husband’s pension, but would extra super payments be assessed by Centrelink?
I work full time and get a part Age Pension under the Work Bonus scheme. My husband is on a part Disability Support Pension as well. My boss offered me a pay increase this year but I had to turn it down because after tax is taken out of the increase and our pensions are reduced, our fortnightly income would be less than we get now.
My boss has suggested that the firm pay me a higher rate of super to at least give me some benefits – would this action affect my pension and, if so, by how much?
A. Whether or not your pension is affected depends on the level of assets that you have. As you are passed Age Pension age, your super balance is included in the asset test and, therefore, any increase in this balance would mean your assets will increase.
By how much your pension is affected, again, depends on your overall asset value. Pensions are reduced by $1.50 for every $1000 over the asset thresholds.
You can find details of the current thresholds here.
Before agreeing to any increase in super payments or salary, I suggest that you consult an independent financial adviser to fully assess your overall financial position and how you can best utilise allowances available to you.
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