For retirees receiving or planning for Centrelink benefits, death benefit structure can influence more than super outcomes — it may also shape Age Pension results.
Potential Advantages:
- Preserve grandfathered deductible amount treatment
- Extend pre-2015 social security benefits
Potential Risks:
- Surviving spouse may move from couple to single thresholds
- Larger retained assets may reduce pension eligibility
- Automatic reversion may prevent estate-based restructuring
Bottom Line:
A reversionary pension may improve outcomes in some cases while worsening them in others.
Reviewing Your Centrelink and Estate Planning Strategy?
The structure of a death benefit pension may affect not only superannuation outcomes, but also future Age Pension entitlements and social security treatment for a surviving spouse.
Small estate planning decisions today may significantly influence long-term retirement income flexibility and Centrelink outcomes.
Contact us to discuss your retirement, Centrelink and estate planning options.
Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.