What is and isn’t assessed when claiming an Age Pension can be confusing. Should you stop worrying and just spend what you have? Finance expert Noel Whittaker has his say.
Selling the family farm
Q. Paul
I was wondering if I sell my property (which is a farm) to my son and become the vendor financier, would the property be considered an asset or would I just be assessed on the interest received as income? Hence, I would receive a lower Age Pension, but would have pensioner benefits.
A. Once you do that you will be assessed as a non-homeowner but the loan would be treated as a deprived asset and be subject to deeming. Make sure you take advice – once farms are involved it can become complex.
Save it or spend it?
Q. Genevieve
I have had a fragmented work history, so have saved little for my retirement – just $55,000 in super and about $5000 in cash. I believe I will get an Age Pension, so is there any point in me hoarding these savings? Should I treat my self to a bucket list trip instead? Let’s face it, none of us know what’s ahead!
A. Based on the information supplied it will certainly qualify for full Age Pension – I would not be against you having some treats, as long as you keep some cash for emergencies.
Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature and readers should seek their own professional advice before making any financial decisions.
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Noel answers your questions: Part 1
Noel answers your questions: Part 2
