A 'Heads up' to those on or nearing going onto an Allocated Pension.
Regarding my other forum topic C. C. Cash Advance & Then Balance Transfer. https://www.ozbargain.com.au/node/140302
I am going to get the cash advance and bring forward my contribution into Super and then roll it into an allocated pension before the end of this year. At the end of the year life expectancy tables are expected to change - I am anticipating going up in years (The shorter the life expectancy the better as far as allocated pensions are concerned), and there are new rules slated by the previous Aust. Government, which the current Government will PROBABLY adopt(not yet adopted) for new allocated pensions being counted in assets tests for Age pensions. It all happens too soon for all of the young pups out there though. I am definitely no expert on this though!!
Allocated pensions changes
Peck on 14/04/2014 - 10:53
Comments
The way that I thought that it worked was, for example, if you start an allocated pension with $100k and your life expectance is 25 years then $4k p.a. is not counted as income for pensions etc. 20 years then $5k p.a. is not counted as income for pensions etc. ie. The shorter your life expectancy when you start an allocated pension, the better. About every 5 years the life tables are updated and start 1 January. An update is definitely due starting 1 January 2015. Hopefully an expert will read and confirm/correct this if I am wrong.
When you say, "The shorter the life expectancy the better as far as allocated pensions are concerned", are you perhaps confusing the term with annuities, the costs of which ARE linked to actuarial determination of life expectancy?
Allocated pensions have no linkage to life expectancy as far as I can determine: https://www.moneysmart.gov.au/superannuation-and-retirement/…