What if your future Age Pension could be improved before you even retire?
Most people approach retirement planning in a pretty straightforward way.
Build super.
Invest well.
Let it grow.
That all makes sense.
However, there’s another layer that often gets missed.
How you structure your super before retirement can directly impact your future Age Pension.
A different way to think about super today
Some super structures don’t require you to change anything today.
You’re still:
- In super
- Investing the same way
- Focused on long-term growth
However, the structure can create a future opportunity.
Not today.
Not next year.
But at the Age Pension age.
For many Australians approaching retirement, understanding how super is assessed under the Centrelink asset test is a key part of long-term planning.
Why this matters
Centrelink doesn’t just look at how much you have.
Instead, it looks at how your assets are assessed.
Because of this, structuring your super earlier can change how part of your balance is treated later.
That’s where the opportunity sits. Great superannuation strategies can make a substantial difference.
A simple example
Let’s say a couple builds up around $1.2M in super by retirement.
If they keep everything in a standard structure:
- Centrelink assesses the full balance under the asset test at Age Pension age
If they structure part of that balance differently:
- Centrelink may only assess a portion of the balance
- As a result, they may qualify for more Age Pension
| Scenario | Total Super at Retirement | Amount Assessed for Centrelink | Potential Outcome |
|---|---|---|---|
| Standard super | $1,200,000 | $1,200,000 | Lower or no Age Pension |
| Alternative structure | $1,200,000 | Reduced amount assessed | Potentially higher Age Pension |
In modelling, this type of difference has led to material increases in the Age Pension in the early years, in some cases around ~$20,000 per year.
Same balance.
Different outcome.
This forms part of broader Retirement Advice!
Where growth becomes powerful
Importantly, your investment strategy doesn’t need to change.
Because you’re still investing inside super, a higher growth approach can actually increase the potential impact over time.
- A larger balance builds over time
- A reduced assessed amount applies later
- As a result, the gap between the two can widen
This is where the strategy becomes more meaningful.
What’s changed recently
Historically, these types of structures often came with additional costs.
Because of that, the benefits needed to outweigh the fees.
More recently, some providers, including MyNorth, have removed those additional fees.
As a result, the conversation has shifted.
Now it becomes less about cost and more about whether the structure improves your long-term outcome.
This isn’t about making a decision today
Many people assume they need to decide now how they’ll draw income in retirement.
That’s not the case.
Instead, this approach is about:
- Positioning part of your super differently
- Keeping your investments working as they are
- Creating an option for the future
So you’re not locking anything in.
You’re simply building flexibility.
Watch a quick overview
This short video explains the concept in a simple way:
Learn more
If you want to explore how this works in more detail, you can read more here:
The takeaway
Most people focus on building their super balance.
However, fewer people think about how that balance will be assessed later.
Even fewer realise that they can make some of those decisions years in advance.
Without changing how they invest today.
That’s where the opportunity sits.
Next Steps
If this has raised a few questions, that’s usually a good sign.
This type of strategy isn’t about changing everything today; it’s about understanding what options you may have later.
If you’d like to see how this could apply to your situation, we can map it out properly and show how different structures may impact your super and future Centrelink position.
As always, this is general information only and does not take into account your personal circumstances.