How Changes to Centrelink & Age Pension Will Affect You
If you are getting ready for retirement, you may well be hoping to receive at least some Age Pension to supplement your investment income. If you are already retired and receiving the Age Pension then you are probably hoping you can hang on to as much of it as possible for as long as possible. If you are already retired and you are NOT receiving any Age Pension then you probably wish you could at least get some – if only to reap the additional benefits that come with it.
What are my options?
If you have not previously received/sought financial advice, then you probably feel that if you are over your Assets Test then you do not have any options. The reality is, however, that many people have a number of options and there are strategies available that assist in maximising your Centrelink Age Pension benefits. These options are not loopholes but genuine and effective strategies that have been available for many, many years. In many cases such strategies can have less risk associated with them than investments in your super fund.
Age Pension Changes
At Financial Planning QLD, we’ve seen how changes in Government policy, action, and rhetoric over recent years have effectively reduced the Age Pension benefits available to many retirees. It has also meant that many about to retire over the next few years are going to receive less Age Pension than they thought they would. Similarly, there will be many people retiring over the next few years who will receive NO Age Pension at all when they thought they would at least receive some.
The two key changes that have led to this are:
- Change in treatment of Allocated Pensions by Centrelink
- Changes in the Assets Test for pension limits and scaling
Again, this does not leave you without options, but it does most definitely increase the importance of investigating your options and having your investments structured in a way that helps maximise your Age Pension benefits.
To find out more about asset test for age pension or changes associated with this, speak to one of our friendly and knowledgeable financial planners today. You can contact us here. We offer services on topics such as investments, superannuation & retirements, home loans and more.