How to legally HIDE YOUR ASSETS from Centrelink Age Pension if based on assessment, you know, that you just simply have too much money.
So here you are, getting ready for the exciting day, when you can finally say, “I can retire now and where is my Age Pension?”, and then to your horror, you find out you have too much savings.
My very first recommendation is: organise your money before your first visit to the Centrelink office or completing your application online. Prepare your assets in advance, so you know your entitlement before Centrelink even comes back to you with the reply. It is so much easier to deal with Centrelink when you know the application is final and you do not have to go through changes, updates, fixing mistakes, reshuffling of money etc.
So what can you do if you’ve calculated that you do have too much savings, but your goal is to get at least part Age Pension, if for no other reason, but at least to have access to the Health Care Card with all its benefits and discounts.
Here are 9 ways how you can legally hide your assets, to improve your Age Pension position:
00:00 Age Pension – Income and Assets Tests
03:50 Gifting
05:50 Home exemption
07:15 Home renovation
07:40 Debt against exempt asset
08:50 Your expenses
09:50 Funeral Bonds or funeral expenses
11:00 Superannuation
13:02 Annuities
14:05 Special Disability Trust
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Contact details:
Katherine Isbrandt of About Retirement
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Email: katherine@aboutretirement.com.au
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As retirement approaches, many Australians look to Centrelink Age Pension to support their post-work life. But what if you have some extra savings that you want to keep hidden from Centrelink? Here are nine ways to legally hide your money from Centrelink Age Pension.
1. Invest in exempt assets. Centrelink has a list of exempt assets that will not be counted towards your Age Pension entitlements. These include your primary residence, a car, and personal possessions.
2. Create a trust. A trust can help you protect your assets by transferring their legal ownership to a trustee. You can also nominate beneficiaries who will receive your assets in the future.
3. Buy an annuity. An annuity is a contractual agreement where you pay a lump sum to a provider who then guarantees you a regular income stream for your life. This can help you keep your assets hidden while still earning interest.
4. Use your partner’s name. If you have a partner who does not receive the Age Pension, you can transfer your assets to their name. However, you should note that Centrelink will still assess your eligibility based on the combined assets and income of you and your partner.
5. Invest in superannuation. Superannuation is a tax-effective way to save for retirement. You can contribute to your super and reduce your taxable income, which can help you keep your savings hidden from Centrelink.
6. Make gifts to family members. You can gift up to $10,000 per year to family members without affecting your Age Pension entitlements. However, any gifts over this amount may be considered by Centrelink.
7. Purchase a funeral bond. A funeral bond is an investment that helps you save for funeral expenses in advance. This investment is exempt from Centrelink assessments, so it can be a way to hide your money from Centrelink.
8. Take advantage of exemptions for rural property. If you own a rural property, it may be exempt from Centrelink assessment. However, you should seek legal advice before transferring ownership or purchasing rural property.
9. Seek professional advice. If you are unsure about how to legally hide your money from Centrelink Age Pension, it’s best to seek professional advice. A financial planner or accountant can help you explore your options and recommend the best strategies for your individual situation.
While it may be tempting to hide your savings from Centrelink, it’s important to do so legally. Attempting to hide money from Centrelink through fraudulent means can result in legal consequences, including fines or imprisonment. By following these nine legal strategies, you can keep your savings hidden while still being eligible for the Age Pension.
Hi Katherine, love your videos very helpful. I have a question. When you gift money or renovate your home to reduce your assets, do you have to inform centrelink or are you assessed annually by them and your pension adjusted according,. Thank you
I watch several YouTube videos on how to trade in the stock market but haven't made any headstart because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands..
Knowing the system is the best way to determine how to maximise your entitlements. Its not cheating. Its using your head and brings you into line with the rich that know how to use the system to their best advantage. Leveling the playing field is not cheating or illegal. Its what we all need to do to understand how the system works. Spreading the knowledge helps the largest number of Australians enjoy their retirement.
Great video thanks
How much will it cost me to contact you? Thanks.
Do you have a office to discuss pension
Hi Katherine I am 62 and my wife is 4 years younger. Can I transfer super from my acct to hers and what would the limits be? Thanks Paul
Transferring money to a sibling's account outside of Australia is the ultimate solution.
Hi Katherine, thank you for all your work. I was granted a part pension when I turned 65. I also have been receiving a Defence (DFRBD) pension from the army since my discharge in my twenties and was told by government back then that it was "non means tested". But today my aged pension is only just a little over half of the full pension per fortnight. If my DFRBD pension increases my age pension decreases immediately, is this right?
Hi, Katherine. I have given my son $100,000 for him to buy a house last year. Now I am about to apply for aged pension, does it mean that sum is going to go into my assest test?
Also, my husband and I are totally financially independent. We don't have any money transactions between us and his mobey has nothing to do with me.. He is still working and I am retired. Would Centerlink consider that when doing my assessment?
Other than stupid people who could possibly support the Australian Government. I am 87 and still do not get a pension.
I have a question, my unisuper accumulation 1, is an asset is that right?, when you reach retirement age, I'm 66, Centrelink have asked me to transfer over to age pension, As im on jobseeker allowance, I do have savings, and I'm a little over, I think, the limit, that $280.000.00 is that right? I've listened to one of your video, and I think it should be tax free, as I didn't touch my Super, I've started to fill out the online sections, but I'm not completed it yet, I need to update a few things like a better car, that will keep me under the limit of $280.000, anyway, I've got to March 20, to complete it, thanks if you can help
What an amazing video with great explanation. I would be retiring soon in a few years and was just wondering how it is that salary earners split their pay and plan for a brighter future by in vesting. I earn quite a good sum annually and have nothing to show for it.
How can anybody apply for pension -while they have to stop working -while they apply -and living on what ??? .Some people -sadly receive their pension after 8 mnth from the date of applying for it –
Lol what a video
many thanks im trying to get the funds out of my super fund tomorrow and then im going to call your office x julia
hello katherine i am retired and on a part pension my husband died recently and i was in his spouse in his super fund i believe im going about to loose this pension now because centerlink tell me ive got too much money i owe 34,000 grand on my credit card i am asking you should i do pay that off before i have to see centerlink in two weeks time also my husband is giving our granddaughter the car i am still driving ,so i will have to buy another one can you please try to help me kind regards julia
Buying a bigger home to get a pension does not make sense because your council rate, water rates, electricity costs and insurances will all go up and barely cover any pension you may receive.
Considering the current prices of real estate and big ticket items such as cars, caravans and boats, i don’t think it would help to get life pension if you have over $750K in assets nor can you survive retirement on life pension if you have not accumulated enough assets, which is the case with most Australians.
I am 75 still working but thinking to retire next year, I have in super $150,000 , share market$100,000 and in bank saving )100 ,000
My partner 71 year old, but no super whatsoever, can I transfer $100,000 in his name and creat a super fund for him, is it possible?? and it will be legal?
Thanks
Alan
Hi Katherine,
I live in Sydney … I will turn 62yo in October 2022 and plan to work full time until 2027.
My wife does not work and our cash savings and shares are under her name.
I have a 18yo daughter who goes to uni next year and a 14yo daughter who is still in high school.
Are the following things considered gifting by Centrelink:
1. Paying for my 18yo's cost of living (accommodation and public transportation) should she decide to go to uni in Canberra.
2. Paying for my 14yo's figure skating related cost (coach, training, equipment and competition).
She has been doing figure skating for the last 4 years and will continue to do so for 1-2 more years.