A letter to Noel Whittaker “(financial adviser and international best-selling author”) in the Money section of the Age Wednesday September 11, 2013
My husband is 61 and retired. I plan to retire when I reach 60 this year. We live in an apartment worth $1.7 million with an outstanding loan of $350,000. Our combined super is $1.2 million. Do we have to draw on our super to pay off the loan so we qualify for the aged pension when we turn 65?
Well, obviously even Noel Whittaker (“financial adviser and international best-selling author”) found this a bit rich… (groan for bad pun):
Your assets are at a level where you’re almost (my emphasis) over the threshold for pension eligibility; therefore I certainly agree you should use $350,000 of your superannuation to pay off the home loan. Just keep in mind that you are four years off pension age and even when you make the withdrawal from super, it is possible that good returns over the next four years will push you back over the asset-test threshold. That’s a good problem to have because it puts you in the top 1 per cent of Australians in a financial sense.
I hope that this letter writer and her husband and in your sights for the ‘sense of entitlement’, Joe Hockey.