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SRP Question 5 help needed !!!

Discussion in 'Financial Planning Study Group' started by bowling2020, 19th Sep, 2009.

  1. bowling2020

    bowling2020 Bowling

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    Sydney, NSW
    HI there, I'm just doing the SRP assignment Kaplan from December 2007 (Philippe and Marianne). Just a bit stuck with the question 5 while trying to calculate the pension entitlement for Philippe.

    In this version, Marianne is 62 years old (born 1945, her age as of 2007 is 62), so she won't be eligible for the Age Pension. Now I'm just trying to calculate the pension entitlement for her husband Phillipe who is 66 years old and retired.

    Under both income and assets tests, are Marianne's shares included in this the assessable income/asset as she is not eligible for Age Pension yet???
    I tried to read the whole chapter on SRP plus the one in ELC, but still can't find the case where one is eligible for Age pension, and the other is not (not even Newstart Allowance as Marianne still works). I know that Marianne's super will NOT be included in the test, but not sure about her shares.

    If someone should shed some lights on this, I'd appreciate a lot !
     
  2. AsxBroker

    AsxBroker Well-Known Member

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    Hi Bowling,

    Everything is counted...except Principal Place of Residence and Superannuation for those under age pension age.

    Cheers,

    Daniel
     
  3. bowling2020

    bowling2020 Bowling

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    Thanks very much Dan.

    So in this case, I made an assumption that both have started allocated pension using their super money, would this result in the same exemption rule??

    I need to find out if I need to include Marianne's income from her allocated pension and whether this would have any impact on Philippe's Age Pension entitlement. I see on the FPG (kaplan) site that if only one member is eligible for Age Pension, then both combined income and assets will be halved.

    Thank you again !
     
  4. AsxBroker

    AsxBroker Well-Known Member

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    No, accumulation accounts are not counted, account based pensions (allocated pensions) are, regardless of the members Age Pension age.

    They are a couple, their combined totals will be used for Income and Assets testing. Though as Marianne is below Age Pension she will not receive payments from Centre Link. You can read more details on Centre Links website Income and Assets test for Age Pension

    Cheers,

    Dan

    PS Before making a decision speak to your FPA registered Financial Planner.
     
  5. bowling2020

    bowling2020 Bowling

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    Location:
    Sydney, NSW
    So the non-commutable allocated pension/income stream would have been 100% assessable for Centrelink social security purpose?

    One more question if I may, can a person roll over his super only some part of the whole super balance (preserved, non-restricted preserved) and maintain some in the super (if he reaches preservation age and still not retire, and over 60 years old) ???

    Thank you so much !