Q. When I retire in about three years’ time, I will own my home, worth approximately $430,000. The only money I will have will be my superannuation balance of approximately $350,000. My partner, who will be 70 when I retire, has no money at all. Given my assets, will we still get the full Age Pension?
A. It’s dangerous to predict three years ahead because the laws may change. But as it stands your home will be exempt, and your money in superannuation will be subject to the deeming rules.
Q. I am about to turn 60 and am no longer work after caring for my partner during his illness for the past four years. He has now passed away. I own my home outright, which is worth about $450,000 and I’m about to sell it. I bought a unit to move into from my current house, which cost $260,000. I bought the unit outright. I have only $45,000 in super. Once I sell my house, what should I do with the $450,000? My measly superannuation, plus the money from the sale of the house, is all I have in the world. Please help me decide what to do, as I have already lost about $60,000 from making really bad decisions.
A. You may have as much or more than 30 years or life ahead of you, so it’s important to have a balanced portfolio with some growth assets. I suggest you talk to a good financial advisor about a balanced portfolio that fits your goals and your risk profile. Alternatively, progressively contribute the proceeds to superannuation without exceeding the limits, and choose a conservative asset mix.
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