Legal Loopholes for Super & Age Pension

Phil and I explored effective "legal loopholes" from clarifying deeming rates to explaining why drawings from an account-based pension are generally not assessed as income by Centrelink, and including practical options such as structured gifting to avoid the five-year deprivation rule.

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Melbourne Cup is coming up I thought it timely to focus on strategies that position you ahead in your retirement planning. 

This October has seen us addressing a range of pension-related queries. Phil and I explored effective “legal loopholes” from clarifying deeming rates to explaining why drawings from an account-based pension are generally not assessed as income by Centrelink, and including practical options such as structured gifting to avoid the five-year deprivation rule.

Quick October Market Snapshot: Our Take on the Month’s Twists

ASX Holds Steady(ish): We’ve watched the S&P/ASX 200 dip about 1.2% mid-month amid those global jitters, but it clawed back nicely by month’s end, closing around 8,880 points, buoyed by a solid resources rally and gold’s shine. In our view, it’s a reminder that diversification isn’t just talk; it’s what keeps portfolios from getting spooked by short-term wobbles.

Tariff Discussions Continue: Those lingering trade policy headaches are stirring up some extra volatility, as expected. Markets have stayed resilient so far, but we’re keeping a close eye on potential escalations. Our take? It’s why we build in buffers: your diversified setup is primed to ride out these bumps without breaking stride.

RBA Maintains Position: The cash rate’s holding firm at 3.60%, with markets pricing in a possible December ease if inflation keeps cooling. We’re hearing from mortgage clients that this steady hand is a mixed bag: relief on the horizon, perhaps, but for now, it’s a nudge to double-check if your super’s sitting too heavy in cash and missing out on better returns.

Crypto Update: Bitcoin’s been on a rollercoaster, dipping below $108k late in the month after hovering near $114k earlier, down about 4% overall. It’s fascinating to track, but as always, we stick to our guns: caution rules here, and super’s the steady steed for long-term growth.

On a brighter note: ASFA’s latest update pegs a couple’s comfortable retirement at $72k a year (up 2.1% YoY). We get it, feels like everything’s pricier than that these days! If it’s got you pondering your numbers, our review chats are always a low-key way to unpack it.

One Last Thought 

Superannuation and pensions are not about speculation: they involve applying established rules strategically to achieve the retirement that aligns with your goals. Incremental adjustments today can lead to substantial benefits over time. 

Thank you for being part of the Wealthlab community: more insights to follow next month.

(P.S. What’s scarier: A zombie apocalypse or missing out on age pension gold? Check our “Boo-st” Page! đź§źâ€Ťâ™‚ď¸Źđź’°)

General Advice Warning

The information on this website is general in nature and does not take into account your personal objectives, financial situation or needs. Before making any financial decision, consider whether the information is appropriate for your circumstances and seek professional advice if necessary.

Wealthlabplus Pty Ltd (ABN 29 678 976 424) is a Corporate Authorised Representative of MiPlan Advisory Pty Ltd (ABN 70 600 370 438, AFSL 485478).

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