Could you increase your potential income in retirement?

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By Suzie Barnaby
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Date posted:
16 September 2019, 2:15 PM

If you want to maximise your income opportunity so that you can enjoy your hard-earned retirement, then understanding how to leverage and structure your financial assets is a must.

This includes your potential access to a part pension. Age pension and part pension entitlements are calculated based on a person’s income and assets.

If you or your partner are currently receiving a part pension, then depending on your circumstances, there may be a way to increase the amount of part pension that you receive by restructuring your financial assets.

Older couple sitting by a pond

Case study

Clients of ours, Clive and Julia* had recently sold an investment property and paid off the remaining loan on their property leaving them with $400,000 in cash.

Clive was 68 years old and fully retired. His wife Julia was 64 years old, and she had also decided to stop working so they could start to share some of lifestyle experiences they’d been looking forward to.

The couple had plans to spend a few months travelling around Australia in their caravan and were looking forward to playing golf together more regularly. They also planned to visit their children and grandchildren in Newcastle and Sydney more often. Clive had been receiving a small Age Pension of around $30 a fortnight.

After looking at their goals and objectives in retirement we were able to recommend a restructure of their finances. These restructures led to Clive’s pension increasing to $390 per fortnight, the equivalent of $10,140 per annum.

There were costs and other considerations due to the restructure, but the clients were over $6,000 better off this financial year due to this strategy.

*Please note: names have been changed in this article for privacy purposes.

Find out more

Suzie is a Senior Financial Planner at Morgans Port Macquarie. Suzie’s passion is supporting and educating clients so they can make well-informed decisions in relation to their own financial situation.

If you would like to learn more about assessing your finances, you can contact the Morgans Port Macquarie office on [email protected] or via (02) 6583 1735.

General Advice warning: This article is made without consideration of any specific client’s investment objectives, financial situation or needs. It is recommended that any persons who wish to act upon this report consult with their investment adviser before doing so. Morgans does not accept any liability for the results of any actions taken or not taken on the basis of information in this report, or for any negligent misstatements, errors or omissions.

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