Should we give away some super so we qualify for the age pension?
The article asks whether people should give away some of their superannuation to help them qualify for the age pension. Its starting point is that pension eligibility can bring meaningful savings, even when the eventual payment is small. Gifting super may reduce the assets counted toward eligibility, but it also removes money from a person’s retirement savings. That trade-off is especially important near retirement, when someone may need cash before pension payments begin. The article cautions against donating super too quickly or without considering the period before eligibility. Keeping the money in super until pension eligibility is presented as the more prudent option while other resources can cover the interim. The decision therefore comes down to comparing the value of receiving the pension sooner with the long-term value of retaining the super.
Even being eligible for a very small pension can come with significant savings. But don’t be too eager to give away your super.