The Australian Government’s Age Pension provides financial support to eligible retirees. It is important to understand the impact of your super balance on your eligibility for the pension. This article will explain how much super you can have and still be eligible for the pension.
Calculating Maximum Super Balance
The maximum super balance that is allowed to be held while still receiving the Age Pension is known as the ‘pension transfer balance cap’. The current pension transfer balance cap is $1.6 million, with an additional $100,000 allowed in the Retirement Phase. This means that the total amount of super you can have and still be eligible for the pension is $1.7 million.
If you have a balance in excess of the cap, you may be able to transfer the excess amount into a superannuation income stream. The amount transferred will not count towards your pension transfer balance cap.
Impact on Pension Eligibility
Any superannuation contributions you make after you have reached the age of 65 will not be counted as assessable income for the pension. However, the total amount of your superannuation balance will be taken into account when assessing your eligibility for the pension.
If your superannuation balance exceeds the pension transfer balance cap, then your eligibility for the pension may be affected. This is because the pension is means-tested and your total superannuation balance will be taken into account when assessing your eligibility.
If your superannuation balance is below the pension transfer balance cap, then you may still be eligible for the pension. However, if your superannuation balance is above the cap, then your eligibility for the pension may be affected.
It is important to understand how much super you can have and still be eligible for the pension. The pension transfer balance cap is currently set at $1.6 million, with an additional $100,000 allowed in the Retirement Phase. Any contributions made after reaching the age of 65 will not be counted as assessable income for the pension. However, the total amount of your superannuation balance will be taken into account when assessing your eligibility for the pension.
