MYTH BUSTER: Is it possible to receive a Centrelink Age pension AND draw from a Super fund?

By developer
October 15, 2019

We have heard all heard the horror stories of retirees running out of income from their super and having to rely on the old age pension or even having to turn off their electricity because they simply can’t afford it!

In fact, studies show that 70% of all Australians end up becoming completely reliant on the Centrelink Old Age Pension. It is a horrible situation to be in and one that is completely avoidable with the right planning. According to the Centre of Excellence in Population Ageing Research (CEPAR), one-third of Australians receiving part pensions have too many assets to be eligible for the full pension. The other two-thirds of part pensioners are ineligible to receive the full pension because they earn too much income.  As holistic financial planners with a focus on goal-based advice, we help educate clients on how they can retire within 30 days on a minimum of $1000 a week TAX FREE through the FW30 Rapid-Retire Program.

The old age pension is based on a means test and ideally you want to be getting both a super pension and an old age pension. If you have either too many assets or too much income, you are not eligible for a full age pension. It is a balancing act and what we help clients do is maximise Centrelink to ensure that you are eligible for the pension. Eligibility for the full age pension will differ depending on whether you are a single homeowner or a couple. Single homeowners are allowed a maximum of $263k before they are ineligible for the pension whilst couple that own a home are allowed $394k before they are ineligible.


  • If you are a homeowner, under Centrelink rules, your house is considered an exempt asset for Centrelink purposes. We can help you convert super assets into exempt assets (such as adding a Granny Flat, a carport or just improving your standard of life). This will in turn also increase your long term income.
  • Do you currently hold a lot of debt? Because the house is an exempt asset, we can help you draw a lump sum out of your super to pay off your mortgage.
  • Gifting the children? You can gift your children up to 30k over a 5 year period. We can help to maximise these gifts so that it does not affect your aged pension.
  • Want to have a guaranteed income for the rest of your life? We can setup a Lifetime annuity with your superannuation so that you have peace of mind.

Forward360 optimises both your income & assets so that you remain eligible for the full age pension.

How can Forward360 help you achieve a minimum of $1000 a week after tax?

We convert your Super to a Centrelink friendly allocated pension which meet the asset and income means testing rules

  • If you have too many assets or too much income, Centrelink pays you nothing
  • If you have too much income, we look at ways to convert them into assets
  • If you have too many assets, we convert these into income

So how do we know if you’re eligible for the FW30  Rapid-Retire Program? What we like to do is meet our clients either in person or over the phone for a free 60 minute discovery session that is designed for pre-retirees and those of retirement age that have been putting retirement off.

In this session:

  • We review your goals, financial objectives
  • We look at your current situation – where you are now, where you want to be and how to get there
  • We look to see if you are eligible to retire within 30 days or not
  • If not 30 days, we discuss a realistic plan of how you can transition to retirement sooner
  • We discuss how you can access government transition to retirement strategies
  • We look at the pitfalls related to tax planning, capital gains tax planning
  • How you can bring down your tax payable figure
  • We discuss how to balance super and Centrelink
  • We discuss estate planning
  • We discuss how to maximise your investment returns
  • We look at how you can reduce your mortgage interest rates and save money on bank interest

This discovery session is valued at $397 and it’s time well spent to discuss how we can map out your financial future  and ensure you don’t become part of the 70% the ends up living solely on the old age pension.

Give us a call now on 1300 84 54 54 or fill in our online booking form. Imagine – you could be ready to retire within 30 days with the help of the team at Forward360.

Sophie Moore

Marketing Manager at Banca

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