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Recent DIY Super Questions

Challenger recommendation

You have previously recommended Challenger for both its strong position in the annuities market for the future and its relatively high dividend yield.
I previously bought at around $10.80. With its recent decline now to $6.50 per share, would you recommend buying some more, particularly with dividend yield now around 5.5%?


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Converting your super into an account based pension?

Question 1: My wife and I have an SMSF and she will reach her preservation age on 15th June 2019. She stopped working while raising the children.

I encouraged her to get some part time work a couple of years back, but she has never worked more than 10 hours per week and does not intend to work more than this. She currently has a part time contract with Woolworths for 10 hours per week. On her preservation age, is she allowed to convert her super, that is in accumulation phase, into an account based pension?

Was she ever classed as gainfully employed under this part time contract?

Question 2: I had fully retired from the public service at age 55 and am now 62. My super is currently in an account based pension. A few years back with GFC, etc, I decided to get a casual job, now a part time contract for 10 hours per week with Coles.

Most weeks they ask me to work more than my contracted 10 hours. I have been told that if I pay in a non-concessional amount of say $300,000, it would have to go into an accumulation account and not an account based pension. Is this correct? Would reducing my work to the contracted 10 hours per week be enough to allow the non-concessional amount to become an account based pension or would I have to resign from my part time contract?


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