Loss of Age Pension due to changes to the Asset Test on 1st January 2017
John is 67 years of age and has been receiving the Age Pension since he retired two years ago. John is single and owns his own home.
On 1 January 2017, the Age Pension Test thresholds changed, and as a result, John's Age Pension benefit reduced substantially to approximately to $50 per fortnight.
John asked us to help him obtain a higher amount of Age Pension.
We were able to show John a number of strategies that would help him to increase his Age Pension benefit:
- Purchase a funeral bond
- Invest some of his superannuation in a lifetime annuity
- Update his kitchen (he had been thinking about this for a number of years)
Whilst the strategies did not facilitate a return to the pre 1 January 2017 pension amount, John was able to substantially increase his fortnightly benefit, which should continue to grow over the next few years.
* Names have been changed to protect client privacy.
What to do next:
If you need some assistance with your Age Pension or any other Centrelink entitlements, or even how to maximise your entitlement contact us today on 03 8394 0300 or email us at firstname.lastname@example.org to organise a complimentary appointment with one of our Certified Financial PlannersTM.