Should I spend my money to have full Age Pension?

Should I spend my money to have full Age Pension?

Advice provided was to spend $300,000 within the period of 3 years, enjoying travelling around the word, and on return to Australia at the age of 67, to only have $451,000 (value in today’s dollars) left in pension accounts to be eligible for the full Age Pension payment.

So for the first 3 years to spend approx.. $100,000pa and once back in Australia and receiving full Age Pension to reduce income to $70,000pa in today’s value.

SCENARIO 1 – spending money to gain full Age Pension

Before I start showing you my comparison, please let me know in the comments below the video, what is your opinion about this advice? Would you accept it? Would you agree that this is a good retirement plan?

SCENARIO 2 – mixture of retirement income streams

Commencement of mixture of account-based pension and annuity

SCENARIO 3 – reduction of spendings

Let’s do a copy of the Scenario 2, but with a reduction of spendings from $70,000pa down to $65,000. Would that make any difference in the outcome?

SCENARIO 4 – improved and maximised investments

For now, I have assumed a very conservative rate of return of average of 6%pa. Let’s take it a notch higher to 7%, which really should be the aim of most balanced funds.

So which scenario would you choose?

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