Glen is planning ahead for his retirement and although a few years off, would like to know what is included in the asset test, and in particular, his wife’s superannuation.
I will be turning 65.5 years on Aug 2018 and was born Feb 1953. My wife was born Feb 1957 so she is eligible for pension at 67 years. What is counted in my assets test when I reach 65.5 years? I think my superannuation and all bank accounts under my wife’s name and mine are counted. Will my wife’s superannuation be counted even if she has not started a pension yet? And if she has started a pension, will the amount in pension mode be included in the assets number to determine what level of government pension I receive?
A. As you are some way off reaching pension age, you should note that the rules and regulations around superannuation may have changed and therefore any information given is only of a general nature and is based on the current regulations.
You can view the list of what is included in the asset test on the HumanServices website. However, in regards to your question on super, the rules are as follows:
- If you’re under Age Pension age and have not started an allocated pension or income stream, then your super is not counted.
- If you’re under Age Pension age and have started an allocated pension or income stream then this will count towards the asset test for your or your partner.
- If you’re over Age Pension age but have not started an allocated pension or income stream, your super is counted as an asset.
You should also note that depending on the type of pension you have chosen, the income generated maybe subject to deeming and included in the income test.