Opinion
Paul BensonMoney contributor
January 11, 2026 — 4:01am
January 11, 2026 — 4:01am
Save
You have reached your maximum number of saved items.
Remove items from your saved list to add more.
Save this article for later
Add articles to your saved list and come back to them anytime.
Got it
My wife and I disagree about whether we should adjust our assets to qualify for a part age pension. I’m 67 and still working full-time on a good income; she’s 56 working part-time. We’re mortgage-free, with about $1.2 million combined in super. She feels the pension benefits are compelling, while I think we should maintain a strong financial buffer for future risks. Which approach makes more sense?
Broad brush, my view is that if you are entitled to the age pension, you will qualify, and if you aren’t, then you won’t. Financial gymnastics aimed at obtaining a few extra dollars from social security that you don’t really need is not my cup of tea.
Cutting down your super so you qualify for the pension is generally not a good idea.Simon Letch
Currently, your question would seem to be a moot point, given you continue to work. I imagine your wife would be pointing to the opportunity presented by the 11-year age gap that you have. Any superannuation held in your wife’s name won’t count towards the age pension assets test for your application until she reaches pension age.
There may therefore be the opportunity to get some superannuation savings that are currently in your name across to hers, to get a temporary improvement in the means testing for the age pension.
You need to consider, however, that upon retirement your superannuation will be converted into a tax-free pension. If you adopt the approach of shifting a significant amount of your super across to your wife for reasons of pension maximisation, then that transferred portion in her account will continue to be subject to 15 per cent earnings tax. You would need to crunch the numbers, but it is possible that the pension gained could be overwhelmed by the extra tax payable.
Editor’s pick
The idea of trying to equalise superannuation balances between a couple is something that, I think, is a good idea, both from an equity perspective, and also with regards considerations like the transfer balance cap. There may be a temporary pension benefit here for you too once you retire, but I wouldn’t orchestrate these moves for that reason alone.
Our SMSF is receiving over $80,000 in compensation from CSLR (Compensation Scheme of Last Resort) for poor advice in the past. How will this be taxed, and what does it mean for us if we want to wind up the fund?
I’m sorry to hear you received poor advice, but glad to hear that the system is working as it should, and where inappropriate advice is provided by a licensed financial planner in Australia, you are compensated appropriately. The CSLR is a scheme that all licensed advisors contribute into to ensure consumers are protected.
My understanding is that your compensation payment will be taxed as income when it is received by the fund, therefore a 15 per cent rate applies. However, you should confirm this with your SMSF’s accountant, who will assist you with the wind up.
I earn $43,000 per year and am around 10 years out from retirement. Is it worth salary sacrificing to super?
Not really. Tax on income between $18,201 and $45,000 is 16 per cent. If you salary sacrifice some money to super it will be taxed at 15 per cent when it arrives in the super fund. So you have saved 1 per cent tax, but lost access to your money until you are at least 60 years of age.
You would likely be better off making an after-tax contribution and then picking up the government’s co-contribution payment of $500.
Paul Benson is a Certified Financial Planner at Guidance Financial Services. He hosts the Financial Autonomy podcast. Questions to: paul@financialautonomy.com.au
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their personal circumstances before making any financial decisions.
Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter.
Save
You have reached your maximum number of saved items.
Remove items from your saved list to add more.
Paul Benson is a Certified Financial Planner, and host of the Financial Autonomy podcast.From our partners