Understanding superannuation and the Age Pension means tests

In Australia, once you retire, you’re expected to access your superannuation to at least partly fund your living expenses in retirement. That means your superannuation is assessed as part of your financial resources to determine how much, if any, Age Pension you could collect.

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Pharaoh’s dreams and the art of financial forecasting

Many will recall the biblical story of Pharaoh’s dreams, which were interpreted to forecast seven years of famine, preceded by seven years of plenty. That story is, arguably, the first explanation of economic cycles.

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Retirement trends have lessons for our own retirement

‘Twenty years ago, retirement was still a fixed point in time—you fully retired and went on a cruise to begin a life of leisure for your vision of retirement. It’s very different now.’

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First steps to understanding finances for retirement

Financial advice is important in planning for retirement. But not everyone wants to go to a financial planner without understanding the system. Fortunately, there’s a way of doing that. Thanks to the Australian government.

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Understanding Australia’s Age Pension: Deemed income from financial assets

The Age Pension income test uses your ‘deemed’ financial income rather than your actual income from your financial assets. Deeming assumes your assets will earn a set rate of income, no matter what they really earn and is part of the income test used to work out income support for Aged Pensioners.

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Understanding Australia’s Age Pension income tests

Australia’s Age Pension is intended to protect seniors from living in poverty if they have no resources of their own to use. However, the amount of Age Pension payable is reduced from the full rate if the senior has assets or other income above certain levels.

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The magic of compound interest and other financial concepts

There’s more to life than money, but understanding some basic concepts helps lay the foundations for a lifetime of learning that helps you better manage your financial affairs.

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New Index helps to understand finances in retirement

The YourLifeChoices Retirement Affordability Index aims to help you understand how much money you currently need to live at various levels and lifestyles in retirement. In this issue, there’s a review of the impact of longevity on retirement.

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Before you retire overseas, make sure you do your research

A growing number of people are retiring outside of Australia, with some Asian countries being popular choices. For some, it’s because the cost of living is much lower there. Others are moving back to where they lived during an earlier phase of life.

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Help in understanding the Australian assets test for the age pension

Centrelink uses a process that assesses both your assets and your income and whichever test reduces your age pension rate the most is what is means tested. In other words, the test that hits you the hardest is the means test applied.

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