How to pay no tax in retirement
In a recent column, a writer stated he and his wife earned around $76,000 a year yet received an age pension of $15,000 each. He also has $450,000 in investments.
What concerns me is how he is eligible for a $15,000 age pension if he and his wife are on that income. My husband and I earn $50,000 per year and Centrelink does not pay us anything like $15,000. I thought the cut-off point was between $50,000 and $ 60,000 at which level you receive no pension. Can you please clarify this?
The cut off point for a pensioner couple under the income test is $67,537.60 a year but you need to understand that income from an account based pension or an annuity often includes a deductible component which is not taken into account when eligibility is being considered.
This is why it is important to take advice before removing money from superannuation as doing so may cause you to lose the deductible component and so become ineligible for the age pension.
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