Pension Division – Frequently Asked Questions (FAQs)
Here are some common questions and answers regarding Nationwide Super’s pension accounts:
How much money do I need in retirement?
Whatever your retirement plans, you will need income to meet your everyday living expenses, as well as any extras.
To give you a guide on how much money you will need when you’re retired, you can use the Retirement Standard Calculator.Click here for the Retirement Standard Calculator
Will my social security benefits be affected?
Social security benefits depend on individual circumstances. You should seek advice from Centrelink or a financial adviser about how a pension could affect your social security benefits and/or your spouse’s entitlements.
|Centrelink / DVA Test||Centrelink / DVA Treatment|
|Assets test||100% assessable based on withdrawal balance|
|Income test – If you were receiving social security benefits and your pension commenced prior to 1 January 2014||Assessable income = your nominated annual pension income amount less a Centrelink deduction amount¹|
|Income test – Pension and/or social security benefits commenced from 1 January 2015||Standard deeming rules apply See Australian Government Department of Human Services website for further information www.humanservices.gov.au|
¹The Centrelink deduction amount is calculated based on your opening pension balance, your age when you started the pension and is reduced for any lump sum withdrawals made.
It is your responsibility to advise Centrelink or the Department of Veterans’ Affairs (DVA) of any changes to your pension (including lump sum withdrawals and any change to your pension income amount) within 14 days, and to provide other details where requested.
Centrelink electronic reporting
Centrelink customers are subject to a review of their pension details by Centrelink in February and August each year.
From July 2016, Nationwide Super participates in electronic reporting to the Department of Human Services (DHS), for the reporting of pension account details for our members who are Centrelink customers. This replaces the need for manual requests for pension account information between Centrelink, members and us.
Does a cooling off period apply?
There is a cooling-off period during which you can cancel your pension in writing. The cooling-off period applies:
- Within 19 days of us receiving your application, or
- Within 14 days of us issuing your Welcome Kit advising you of your pension details.
If you cancel your membership during the cooling-off period, we will have to transfer any preserved and restricted non-preserved benefits to another complying Australian superannuation fund or pension. Fees, costs and investment earnings will not be applied to your account; however the amount will be adjusted for any tax payable.