Q: Can you explain the value of making super contributions before retirement and the fact that when you reach 67, depending on the super assets you have, you could be entitled to either the full, part or no government age pension? As a single person, I believe the upper asset limit (for no age pension) is around $600,000. I’m still contributing to super, but my dilemma is: would it be wiser to deliberately not make super contributions to keep my super balance as low as possible to receive a greater age pension which, I believe, is around $500 a week? Say my super balance is $230,000 and I have to withdraw 4 per cent, or $180 per week, this would give me total income of about $700 a week. But to earn 4 per cent a week from super, I would need $875,000 in savings – an amount most people will never achieve. Are my figures and is my logic correct? Michael.

A: What your question highlights is that total income at retirement for Australians with little or no savings will always be less than for those who have additional savings in either superannuation or financial assets outside super.