Planning for retirement?
Victoria media release
Wednesday, 24 February 2010
North-eastern Victorian primary producers who are considering retirement are encouraged to contact Centrelink's Financial Information Service (FIS).
Centrelink Rural Services Officer, Geoff Jones said generational farming businesses often have very involved financial structures.
"There are 2 things primary producers should avoid," Geoff said. "One is self-assessment, where retiring farmers assume they are not entitled to any Age Pension – and the other is assuming everyone is entitled to Age Pension.
"Every case is different. Most farmers set up their properties as businesses, so there can be trusts and company arrangements, partnerships and other ownership issues to take into account.
"These structures must be considered on an individual basis, as do the aspirations of the retiring owners. Some may want to stay on the property rather than move into town. It may be better for some to draw a wage from the company and others to access the pension.
"This often involves other professionals like solicitors and accountants, but another valuable place to start is with the Centrelink FIS Officers."
Geoff noted the industry was ageing and said orderly succession planning was a process that was usually started years out from retirement.
"Succession planning is a complex process and may be a difficult topic for families to discuss. Talking to a Centrelink professional can help."
He also urged primary producers in north-eastern Victoria to draft a Last Will and Testament, saying the allocation of assets is anything but straightforward.
"A lack of clear direction usually means the estate ends up in Probate Court, which is compounded if the decisions are contested," Geoff said.
"Another consideration is they have an Enduring Power of Attorney in place so an appropriate person is appointed to look after their affairs should they become unable to."
Centrelink’s Financial Information Service is free to everyone - Centrelink customer or not - and you can organise to speak to a FIS Officer by calling 13 2300. Geoff Jones can be contacted on 0419 890 185.
For more information, telephone the relevant Centrelink Media Contact.