‘I have too much money for the pension but not enough to live on, what can I do?’

Q. I retired in April 2012 at age 62.5 years approximately. I own my own unit and have about $235,000 in a superannuation pension account from which I take the basic 5 percent each year. However, I have too much money to get any pension from Centrelink. My problem is I cannot seem to generate enough interest from my savings/holdings to get by, even with quite a low level of spending, without reducing my principal holdings.

A. You have provided sparse information, but you appear to be single. If that is the case, you could have assessable assets (not including your home) of up to $564,000 before losing eligibility for the Age Pension. You can find out what pension you may be entitled to by going to the Age Pension calculator on my website.

You really need to be talking to a financial advisor to seek recommendations about a balanced portfolio. There are some great income funds around, some which have averaged better than 8 percent per annum over the past 10 years and these may help solve your problem. Also keep in mind that as you run down your assets by spending, you are getting closer and closer to become eligible for the Age Pension. So, don’t be frightened to have a splurge.

Email your money question to Starts at 60’s panel of experts for consideration at [email protected].

IMPORTANT LEGAL INFO This article is of a general nature and FYI only, because it doesn’t take into account your financial or legal situation, objectives or needs. That means it’s not financial product or legal advice and shouldn’t be relied upon as if it is. Before making a financial or legal decision, you should work out if the info is appropriate for your situation and get independent, licensed financial services or legal advice.