The Age Pension is a fortnightly payment for Australians aged 67 or older. It’s designed as a financial safety net to help retirees cover basic living expenses.

Not everyone is eligible though. Not only do you need to meet age requirements (67 years old), you also need to be an Australian resident who has lived here for at least 10 years, with at least five of those years in a single continuous period.

You’re also subject to an asset and an income test, the results of which determine how much Age Pension you can get, if any. Centrelink assesses you under both tests then applies whichever gives the lowest rate of payment for your individual circumstances.

The income test assesses all income pooled from all sources, including wages, superannuation, investment income, commission payments, and any other types of income including those from overseas.

Meanwhile the asset test assesses everything you own, whether it’s in full, in part, or you have an interest in it. It does exclude the home you live in but includes any assets you hold overseas.

How much can I earn and own?

To receive the full Age Pension, single Australians can earn up to $226 per fortnight. Meanwhile, couples can earn up to $396 per fortnight.

Meanwhile, the asset rules just changed. As of the 20th of September, in order to receive the full Age Pension, single homeowners can now own assets (including superannuation) up to a value of $333,000, and non-homeowners can own assets up to $600,000 in retirement.

Again, a couple has a different threshold, and it’s not double the amount of one person. A couple combined can now own up to $499,000 in total if they own a property, or $766,000 if they don’t.

But it’s still possible to earn something if you’re over these limits. A part payment is assessed on a sliding scale depending on your income and assets.

The rules are strict. So it’s easy to see why so many retirees or soon-to-be-retirees try to reduce their income or assets by gifting off money to their kids to try to meet thresholds for the Age Pension.

But that’s a huge no-no.

Gifting money can backfire.

Here’s why.

Centrelink has strict rules about gifting money

Centrelink has strict rules to deter Australians from giving away money to influence their Age Pension eligibility.

If you give away your income or assets, they may still count towards your income and asset tests. This also applies if you sell them for less than they’re worth.

This includes selling or gifting property, a car, money, moving money into a trust, giving up control or a trust or company, forgiving a loan, donating money, or even refusing income to fall under the Age Pension limits.

Gifting limits

You can choose to give away any amount and as many gifts as you like. If the total value of your gifts is more than the value of the gifting-free area, your Age Pension payment may be affected.

If you gift over the value of the gifting free areas, Centrelink will count the excess in your asset text and apply deeming and include it in your income test.

This applies for five years from the date you make the gift.

The value of the gifting free areas is the same whether you’re a single person or a couple. 

You can gift up to $10,000 in one financial year and $30,000 over five financial years. The $30,000 can’t include more than $10,000 in a single financial year. This won’t affect your asset or income test, but any amount over this will be counted for the next five years.

The post Gifting money to your kids? How it could accidentally dent your Age Pension appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

At age 55, you’re on the home stretch towards retirement. It’s vital that you’re on top of how much is in your superannuation and how it compares to what you need to quit work.

At this age you’re just five years from your preservation age (when you can access your superannuation if you’ve retired), 10 years from accessing your superannuation regardless of whether you’ve stopped working or not, and 12 years away from the Age Pension (if eligible).

It’s the final window to boost your superannuation and leverage compound growth. 

You’ll want to ensure your super fund is performing well, and that you’re adding additional contributions wherever you can.

You should start aiming to clear your debt, including your mortgage. It’s also potentially the time of start making structural life adjustments. These can make the transition to retirement much easier. 

The downsizer contribution rule, for example, allows Australians aged 55 or older to contribute $300,000, or $600,000 for a couple, from the sale of their home into super.  

That’s a great way to boost your balance before retirement.

Here’s a breakdown of what you should have in your superannuation at age 55 to find out if you’re on track.

The cost of retirement

Most Australians aim for a comfortable retirement. That means enough money for a good-quality lifestyle and funds to pay for things like top-tier private health insurance, regular leisure activities, meals out, and potentially even some travel.

The Association of Superannuation Funds of Australia (ASFA) calculates that a comfortable retirement will cost around $55,923 per year for singles and $78,566 for couples. 

These figures assume you own your home outright and that you’ll receive a part Age Pension. That means additional mortgage or rental costs will be on top.

How much do I need in my superannuation to afford a comfortable retirement?

Again, ASFA has run the numbers. It’s estimated that single Australians will need around $630,000 in their superannuation at retirement, and couples will need around $730,000 to be able to finance a comfortable retirement lifestyle.

The catch is that these figures are calculated on the assumption that you’ll be retiring at age 67. So if you want to stop working earlier, you’ll need to account for those extra years up to age 67. 

If you don’t own your home outright you’ll also need to add mortgage payments or rent onto your balance.

At age 55, how much superannuation is considered as ‘on track’?

Assuming you have a $100,000 per year income and that you’re aiming for a $630,000 superannuation balance, at age 55 Australians should have around $348,000 in their superannuation.

If your income is a little lower, around $75,000, you’ll need a bit more. A superannuation balance of around $367,000 at age 55 should still put you on track to reach the $630,000 goal within the next 12 years.

How does your balance compare?

The post How much should I have in my superannuation at age 55? appeared first on The Motley Fool Australia.

More reading

• Want to retire early? Here’s where I’d put my money
• Gifting money to your kids? How it could accidentally dent your Age Pension
• Invested in ASX IVV or other iShares ETFs? Here’s your next dividend
• Woodside vs Westpac: Which ASX share is better for passive income?
• Temple & Webster vs Nick Scali: Which furniture share is better?

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BlackRock has announced the next lot of estimated distributions for some of its ASX iShares exchange-traded funds (ETFs). 

All of these ASX ETFs are invested in international shares or bonds.

The ex-dividend date is tomorrow.

In order to receive an upcoming distribution, you must own the ASX ETF before its ex-dividend date.

iShares S&P 500 ETF (ASX: IVV) is among this group of exchange-traded funds.

IVV tracks the US benchmark S&P 500 Index (SP: INX), giving Aussies easy access to the runaway US market.

US stocks have smashed the S&P/ASX 200 Index (ASX: XJO) over the past three years.

In FY26, US stocks produced triple the total return of ASX 200 shares at 22% vs. 7%, largely due to the artificial intelligence (AI) boom.

A recent CMC survey of more than 8,500 investors and traders found ASX IVV was the most popular ETF among buyers today.

BlackRock will pay its ETF investors on 9 October. 

Here’s what ASX IVV and other ETFs will pay

Here is a list of the estimated distributions that iShares ETF investors will receive next month.

The dividend amounts will be confirmed on Wednesday.

ASX ETF	Distribution
iShares S&P 500 ETF (ASX: IVV)	17.35 cents per unit
iShares S&P Mid-Cap ETF (ASX: IJH)	12.94 cents per unit
iShares S&P Small-Cap ETF (ASX: IJR)	59.78 cents per unit
iShares U.S. Factor Rotation Active ETF (ASX: IACT)	2.43 cents per unit
iShares Nasdaq Top 30 ETF (ASX: ITEK)	1.16 cents per unit
iShares Core Global Corporate Bond (AUD Hedged) ETF (ASX: IHCB)	195.24 cents per unit
iShares Global High Yield Bond (AUD Hedged) ETF (ASX: IHHY)	133.29 cents per unit
iShares J.P. Morgan USD Emerging Markets Bond (AUD Hedged) ETF (ASX: IHEB)	72.68 cents per unit
iShares Global Aggregate Bond ESG (AUD Hedged) ETF (ASX: AESG)	146.85 cents per unit
iShares Core Global Aggregate Bond (AUD Hedged) ETF (ASX: AGGG)	70 cents per unit
iShares U.S. Treasury Bond (AUD Hedged) ETF (ASX: IUSG)	201.61 cents per unit
iShares World Equity High Income Complex ETF (ASX: WYNC)	70.28 cents per unit

IVV and iShares ETFs join 15 other ASX stocks and REITs going ex-dividend this week.

Vanguard has also announced its next batch of estimated distributions for its ASX ETFs.

They include the most popular ETF on the Aussie market, Vanguard Australian Shares Index ETF (ASX: VAS), as well as Vanguard Australian Shares High Yield ETF (ASX: VHY), and Vanguard MSCI Index International Shares ETF (ASX: VGS).

The ex-dividend date for Vanguard distributions is Thursday. Vanguard will pay investors on 16 October.

The post Invested in ASX IVV or other iShares ETFs? Here’s your next dividend appeared first on The Motley Fool Australia.

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• 5 ASX ETFs for Aussie investors to buy and hold for 20 years
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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.