reserve - another option. Trade UP. Move to a more expensive...

reserve - another option. Trade UP. Move to a more expensive house / area. A top suburb or beach front - whatever, just trade up to reduce your capital so you get a full age pension.

Then start to draw down loans against the property. I guess the question is can you get a loan at reasonable rates? Well lets take an example of you have just traded up from a $1m property to a $2m property, and you borrow $80k a year. As it is a debt it is nor counted against you, so I believe you are entitled to a full pension, of about $35k for a couple.

You pay say 6% interest on the $80k = $5k PA, thus reducing your total income to $110k in the first year. Each year you increase your loan by $80k plus the extra interest, So in year 2 you would borrow say $86k and in year 3, $92k etc.

At the end of say 10 years you would owe about $1m, in round terms.

If you keep your money in SMSF and as a result get no pension, then to obtain the same income you would wipe out much of your SMSF over 10 years.

Back to the house deal. If property goes up at 6% compound then at the end of 10 years your EXTRA $1m invested in your property is worth $1.8m. Less the $1m to pay back your loans and you still have over $800k surplus.

At the end of 10 years I calculate that you would be over $750k in front.

Just a thought.