Q.

I plan to retire next year after I turn 68. I have registered for the pension bonus scheme and will be eligible for the age pension. My superannuation at the moment is worth $250,000 and I am considering taking a lump sum as the present rules allow this without paying tax. I intend to put the money in various high interest fixed deposit savings accounts with reputable financial institions such as banks. My wife does not work and as she is 5 years younger then me and will not be eligible for the age pension until she is 64, therefore, will have to go on new start. Am I making the right decision? I will have nothing to do with the stock market.

If you refuse to invest in shares, and have adequate resources, there is no reason why you could not keep the money in cash. The big decision is whether you do this inside or outside the superannuation environment and your best decision will depend entirely on your tax position. Furthermore, money in super is not counted by Centrelink until the holder reaches pensionable age so there may be an advantage in putting money in superannuation in your wife's name. Your adviser should be able to do the sums for you.