Will super affect our pension?

YOURLifeChoices member Deb is wondering if her superannuation will affect her getting an Age Pension when she reaches 65 and also, if her husband’s Age Pension will be affected.

Q. Deb
I am not eligible for the Age Pension until 2015. In the meantime, my husband who is turning 70 soon, gets a part Age Pension which is just short of the full amount. My question is, when I turn 65 in 2015, what affect will a superannuation fund that I have in my name only have on (1) my eligibility to get the Age Pension and (2) how will this affect my husband as my assets, excluding superannuation, are assessed along with his as we are a married couple.

A. When you reach 65 and are eligible for the Age Pension and do not start an income stream from your super, it will be classed as an asset. Your superannuation fund balance will also be subject to deeming under the income test. If you have started to receive superannuation benefits, then how these are assessed depends on the income stream chosen.

As you are part of a couple, your superannuation, as an asset and/or income will be taken into consideration for both yours and your husband’s Age Pension.

Written by Debbie McTaggart