Sanjeev Sabhlok's notes on technology, hardware, gardening

Notes on Australian pension and superannuation system

These notes are intended to assist me in understanding this issue better.

The following figure (source) suggests that it is counter productive to save beyond the level that creates an annual income of $22,500 for a couple.

BUT

“you have to lose $1 of outside income to earn 50¢ of age pension under the income test, which is otherwise biased towards you in that the first $81,600 in savings is deemed to earn only 1.75 per cent. The maths is nearly always in favour of having as much non-pension income and savings as possible.” [Source]

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