The value of assets you can own, and the amount you can earn, while still qualifying for the age pension will rise next Sunday.

The changes reflect indexation adjustments, which are made twice per year, to keep up with inflation.

Pension payments will also go up.

Single pensioners will receive an extra $36.80 per fortnight under the inflation adjustments from 20 September.

That will take the full pension payment up to $1,237.70 per fortnight.

Couples will get an extra $27.80 per partner, per fortnight.

That will raise the full pension payment to $933 per partner, per fortnight.

Are you eligible for the age pension?

Australians born on or after 1 January 1957 are eligible for the pension at age 67, whether retired or not.

The pension is subject to an assets test and income test.

If you own or earn too much, you may only qualify for a part-pension, or no pension at all.

Let’s look at the numbers.

How much can you own under the assets test?

Australians will be able to own more from 20 September and still qualify for at least a part-pension under changes to the assets test.

A primary place of residence is excluded from the assets test.

Everything else, including superannuation, ASX shares, bonds, rental properties, and cash, is assessable.

If you rent your home, you are allowed to own more in assets while still qualifying for the age pension.

Under this next round of indexation changes, only the upper thresholds for the assets test are changing.

Single homeowners whose assets are worth less than $333,000 qualify for a full pension.

Single homeowners whose assets are worth between $333,001 and $745,750 (up from $733,500) will be eligible for a part-payment.

Non-homeowner singles whose assets are worth less than $600,000 qualify for the full payment.

Non-homeowner singles who have between $600,001 and $1,012,750 (up from $1,000,500) in assets will qualify for a part-pension.

Couple homeowners whose assets are worth less than $499,000 qualify for a full pension.

Couple homeowners who have between $499,001 and $1,121,000 (up from $1,102,500) in assets will qualify for a part-payment.

Non-homeowner couples whose assets are worth less than $766,000 qualify for the full payment.

Non-homeowner couples who have between $766,001 and $1,388,000 (up from $1,369,500) in assets will qualify for a part-pension.

How much can you earn while still getting the pension?

Australians will also be able to earn a bit more from 20 September while still qualifying for at least a part-pension.

Under this next round of indexation changes, only the upper thresholds for the income test are changing.

Singles who earn less than $226 per fortnight qualify for the full payment.

Singles who earn between $227 and $2,701.40 (up from $2,627.80) per fortnight will qualify for a part-payment.

Couples who earn less than $396 per fortnight qualify for the full payment.

Couples who earn between $397 and $4,128 (up from $4,016.80) per fortnight will qualify for a part-pension.

As usual, a pensioner’s annual investment income (with the exception of rental income) is determined by deeming rates.

The deeming rates will go up on 20 September.

The lower deeming rate will be 1.75% for the first $66,800 worth of assets for singles and the first $110,600 for couples combined.

Everything above these amounts will be deemed to have earned the new upper deeming rate of 3.75%.

The post How much can Australian pensioners own and earn under new rules starting next week? appeared first on The Motley Fool Australia.

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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 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.

A $50,000 annual retirement income sounds achievable, but the amount of superannuation needed to fund it may be higher than many Australians expect.

For someone aiming to retire with that level of income, a $1 million super balance is often cited as a useful benchmark.

But there is no magic number. How long the money needs to last, investment returns, withdrawals and access to other income streams can dramatically change the equation.

Is $1 million in superannuation enough?

The appeal of a $1 million super balance is obvious. A retiree withdrawing $50,000 a year would initially be drawing 5% of their portfolio. The catch is that retirement isn’t simply about dividing $1 million by $50,000.

The money remaining in superannuation can continue to generate investment returns, potentially allowing the balance to support withdrawals for decades. But markets don’t move in a straight line, and poor returns early in retirement can put significant pressure on a portfolio.

Inflation is another consideration. A $50,000 annual income today won’t necessarily provide the same purchasing power 10 or 20 years from now.

That’s why retirees need to think beyond the headline super balance.

Investments could make or break the plan

The way retirement savings are invested can have a huge impact on how long they last.

A portfolio heavily weighted towards cash may provide stability, but could struggle to keep pace with inflation over a long retirement. Meanwhile, a portfolio with substantial exposure to shares can potentially deliver stronger long-term growth, but comes with greater volatility.

For many retirees, the challenge is finding the right balance between generating income and preserving enough capital to fund future years.

The timing of superannuation withdrawals matters too. Taking substantially more than $50,000 in some years could accelerate the depletion of a portfolio, while spending less during weaker market periods may help preserve capital.

Don’t forget the Age Pension

Superannuation also isn’t necessarily the only source of retirement income.

Eligible Australians may receive the Age Pension, depending on factors including their income and assets. That means someone targeting $50,000 a year may not need their superannuation to provide the entire amount.

This can materially reduce the amount of savings required, although eligibility and payment rates can change over time.

The real question isn’t just ‘how much?’

For someone targeting $50,000 a year, $1 million in superannuation could provide a substantial foundation. But whether it’s enough depends on factors including investment performance, inflation, spending habits, retirement age, longevity and other sources of income.

That’s what makes retirement planning tricky: the goal isn’t simply accumulating a particular number. It’s building a portfolio capable of supporting the lifestyle you want without running out of money.

For investors still building their superannuation, the takeaway is potentially encouraging. There are multiple levers to pull, including contributions, investment strategy and retirement timing, that can improve the odds of turning a sizeable super balance into a sustainable retirement income.

The post Want $50,000 a year in retirement? Here’s how much superannuation you may need appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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.

Some ASX shares are trading a long way below where investors were willing to value them only a year ago.

That doesn’t automatically make them bargains, but I think it can create an opportunity when the long-term business case remains strong.

These are two ASX shares I would be comfortable buying at today’s lower prices.

Cochlear Ltd (ASX: COH)

Cochlear shares are trading around $137.88 at the time of writing, compared with a 52-week high of $303.74. That puts the stock roughly 55% below its high.

I think the size of that fall deserves attention because Cochlear still operates in a market with a significant amount of unmet demand.

The company develops cochlear implants for people with severe hearing loss, yet many potential candidates around the world are never referred for treatment or ultimately receive an implant.

For me, that leaves a long runway even before considering population growth and ageing.

Cochlear also continues to improve the technology itself. Its newer Nucleus Nexa platform gives the company another opportunity to encourage upgrades and make treatment more attractive to future recipients. Longer term, developments such as personalised stimulation, drug-eluting electrodes, and potentially totally implantable devices could continue improving the patient experience.

Healthcare companies can go through periods when growth disappoints or investors become less willing to pay premium valuations. I think that’s where we are right now. But that disappointment won’t last forever.

As such, I would be happy to buy Cochlear at today’s level and give the underlying growth opportunity time to play out.

Nextdc Ltd (ASX: NXT)

NEXTDC shares are also trading well below their previous high.

At around $12.30 at the time of writing, the data centre operator is roughly 31% below its 52-week high of $17.85.

I continue to think the long-term opportunity behind the ASX share is substantial. NEXTDC is investing heavily to expand its data centre network as demand grows from cloud computing, artificial intelligence, and other digital workloads.

What I like is that the company already has a large amount of customer demand contracted before all that capacity has been completed. That gives me more confidence in the expansion strategy.

As new data halls are completed and contracted, and customers begin using them, more of that capacity should start contributing revenue.

There is still plenty to watch. Data centres require enormous amounts of capital, and NEXTDC needs to build efficiently, secure sufficient power, and manage its funding as the network expands. But those are risks I am willing to accept given the scale of the opportunity.

At $12.30, I think investors are getting a much more attractive entry point than they had near the 52-week high.

Foolish takeaway

Neither Cochlear nor NEXTDC needs to return to its previous high for me to be interested today.

I like the growth opportunities behind both businesses, while their much lower share prices give investors a very different entry point from where they traded previously.

If Cochlear keeps reaching more patients and NEXTDC successfully converts its contracted demand into operating data centre capacity, I think both ASX shares have plenty of room to recover over the years ahead.

The post 2 ASX shares I’d buy before they return to their 52-week highs appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.