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Showing posts with the label how super much do I need

Is $0.5m in super really a “small amount”?

When providing advice to a Centrelink age pensioner, a recent article in the mainstream press (7/9/16) suggested “for a relatively small amount, such as $500,000”.  Of course “relative” can mean a number of things and is dependent upon - relative to what. So let’s look at that relativity. First we look at what $500k in super means to a single age pensioner – as was the case for the press article. Let’s assume that this was the total amount of assets held by the age pensioner. The age pension would be reduced from $870 to approx. $440pf for that “relatively” small amount. In 2017 that age pension is expected to be reduced by a further $7,700 pa. A weekly loss to the age pensioners 'budget' of nearly $150 per week from the current 2016 pension. Back to judging whether that $500k is a relatively small amount. In December 2015 the Association of Superannuation Funds of Australia Ltd(ASFA) published the report “Superannuation Account Balances by Ag...