Can you restart a super fund after you have retired?

John has taken all the money out of his super but fears he may have made a mistake.

Can you restart a super fund after you have retired?

John has taken all the money out of his super but fears he may have made a mistake. Is it possible to fix it?

•••

Q. John
When I retired, I withdrew all my super because it wasn’t a lot of money and I was buying a new home and wasn’t sure how much money I would need. Now I see the value of my home and the costs involved in selling and note that buying a new home will put me well behind breaking even. Can I now put the money I have sitting in a bank getting virtually nothing in interest back into superannuation funds or is this not allowed?

On a different topic, I have also been considering a move to China. My wife is Chinese and has no family here. We applied for her daughter to come to Australia, but it was rejected by our Government because her father is alive in China and she is therefore deemed as having family there, although there has been no contact between them for almost 30 years. My wife worries that when I die, she will be alone and isolated as we do not socialise, and she has nobody to aid her here. If I were to move to China with her, what will happen with regard to my Age Pension? Can it simply be paid into my bank account or do I have to return to Australia to keep it activated? I am now 70 years old and need a solution to this problem. My wife is 59 years old, and we would like to consider a move to China and buying an apartment there with our daughter.

A. To answer your first question, once you have retired and taken all of your money from your superannuation account you cannot restart a superannuation fund. That won’t stop you from being able to invest the money more wisely than just have it sitting in a bank account, but you should contact a financial adviser to find out what options you have.

In answer to the second question, it is possible to get the Age Pension for the whole time you’re overseas. Once you have been outside Australia for longer than 26 weeks, your pension will be reduced to a proportional rate based on your ‘Australian working life residence’. This is the number of years you have resided in Australia since age 16 to Age Pension age.

If you have lived in Australia for 35 years (420 months), then you are paid the full rate of Age Pension to which you are entitled. If, however, you have only resided in Australia for 20 years, then you will be paid 241/420 of the Age Pension (20 x 12, plus an extra month). If you leave Australia permanently, the rate of Pension Supplement you receive will be reduced on departure and the Energy Supplement will cease.

As long as you remain eligible, your Age Pension will be paid every four weeks.

Are you eligible for an Age Pension? Do you know your rights? The PensionChecker™ tool has all the information you need.

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    Disclaimer: All content on YourLifeChoices website is of a general nature and has been prepared without taking into account your objectives, financial situation or needs. It has been prepared with due care but no guarantees are provided for ongoing accuracy or relevance. Before making a decision based on this information, you should consider its appropriateness in regard to your own circumstances. You should seek professional advice from a Centrelink Financial Information Services officer, financial planner, lawyer or tax agent in relation to any aspects that affect your financial and legal circumstances.





    COMMENTS

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    Paddington
    27th May 2019
    10:09am
    I was in shock at the choice of place, China, until I read the connection. Now that is a communist country with no tolerance for some religions. Laws are not like in Australia.
    Freedoms are not like we have here. I think he needs to do more research before making the jump. He could outlive his wife not the other way round.
    Anonymous
    27th May 2019
    10:19am
    agree Paddington...China would be the last place I would be going ..especially in the present climate.
    Cowboy Jim
    27th May 2019
    10:59am
    The elephant in the room would be the loss of Medicare rebates and subsidised medical supplies. Life in China is not exactly that good value either; had a few Chinese work mates who filled me in and I went over there twice. Certainly in advanced age I would not consider living over there. Even on the full age pension is not much in China unless you would go to a rural area where English is completely unknown.
    Question would be: Does John speak Mandarin, has he been to China for a few months minimum. Have stayed in Taiwan for a while and there English is no problem, even have an English-language newspaper. Hong Kong would be another place to consider but there the language is Cantonese. The hindrance could also be - will the Chinese Govt allow him in? That is not as easy as it sounds.
    Jennifer
    27th May 2019
    11:45am
    I couldn't agree more with all of you - Paddington, Ardnher and Cowboy Jim. I hope John who is considering a move to China, will think carefully through the pros and cons of such a change of country and realise that there are more "cons" to such a move and little (if any) pros.
    Jennifer
    27th May 2019
    11:45am
    I couldn't agree more with all of you - Paddington, Ardnher and Cowboy Jim. I hope John who is considering a move to China, will think carefully through the pros and cons of such a change of country and realise that there are more "cons" to such a move and little (if any) pros.
    McDaddy
    27th May 2019
    12:25pm
    He can start another Superfund provided he meets the current work test, which even that is being removed for 65-74 yo from 01/07/19
    inextratime
    27th May 2019
    1:32pm
    I met someone this weekend who is now living in Hong Kong and loves it. However its a temporary situation so that may have to be taken into account. Many Chinese who departed HK after reunification with China and came to Australia have returned.
    inextratime
    27th May 2019
    1:32pm
    I met someone this weekend who is now living in Hong Kong and loves it. However its a temporary situation so that may have to be taken into account. Many Chinese who departed HK after reunification with China and came to Australia have returned.
    Lorrainehk
    27th May 2019
    4:24pm
    I have lived in Hong Kong for many years and have worked in China. It is very cheap to live there, very good living conditions and even in the countryside many people speak some English. Many cities now have lovely supermarkets with imported goods. Most people have ways to get around the restrictions on access to information. The country is much more advanced than Australia in terms of transport and banking. We have Christian friends with 500 in their congregation The country is not all doom and gloom as many have said. As he is over 60 and cannot legally work he would be very unlikely to get anything more than a month tourist visa. He would not be able to buy property in his name
    Cowboy Jim
    27th May 2019
    6:57pm
    Thanks for your input, Lorrainehk. It helps people who think they can go there without hassles.
    johnp
    24th Jun 2019
    6:21am
    A problem in the article was the 2nd answer about :
    "you should contact a financial adviser to find out what options you have"
    Be very careful as to what financial adviser is contacted as they are mostly in it for their own gain from your pocket.


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