Age Pension – How much will i get ?

Age Pension ? Will i get any ? how much will i get ? When can i apply ? These are all very common questions people have when they first come and see a financial planner. Unfortunately the system is complicated for people with assets between $300,000 and $880,000. Below $300,000 is easy and above $850,000 is also easy. You either get close to the full amount or you get almost nothing.

The Commonwealth Seniors Health Care Card may be available even if you dont get any age pension and that is always worth applying for and that is only income tested.

If you have assets within the range listed above then things get complicated and strategies can be applied to improve the age pension benefits you get.

Effective strategies include doing improvements on the family home. Things like solar panels should reduce your power bills ✔ shelter the assets from the assets test to give higher age pension payments ✔ You will love running the air con during those hot summer days with power that is cheap or free ✔

Traveling is another good strategy to boost your age pension benefits. You are spending your money, reducing your capital producing fond memories ✔ and potentially more age pension ✔

Improving your lifestyle is our business. Both of these strategies you will get a meaningful boost in your lifestyle.

You can also use certain income streams to provide centrelink assets test shelter. These are normally very secure assets with a reducing cash value over a period of time, reasonable interest rate and Centrelink assets test shelter of 40%. Eg if you invest $100,000 in the appropriate investment only $60,000 counts for the assets test. This will boost your age pension by up to $180 per fortnight. This age pension boost is in addition to the interest your investment will generate. Depending on the term it will be over 4% pa. $180 per fortnight is $4,680 extra age pension per year and this is only available if you invest in the correct investment with Centrelink shelter.

If there is an age difference between you and your partner there may also be opportunities to improve your age pension position for a period of time using superannuation strategies.

It is important to take advice to ensure that you understand exactly what benefits you are entitled to from the government. With this knowledge you can structure your affairs to ensure you maximise your Centrelink benefits, boosting your lifestyle and ensuring you can retain your assets for yourself and your family.

We have never had anyone come in and say they did not pay enough income tax during their working life. Those income taxes you paid were assisting in funding someones age pension. That is how the system works. Maybe now it’s your turn to get some of that income tax back.

We pay our income taxes to the Federal Government with the promise that they will pay you a means tested age pension when you reach age pension age so long as you fit within the bands of the income and assets test.

Most people do not realise how generous our pension system is. The earlier you learn about the system the more opportunity you have to retire early. If you understand the system at age 60 it may allow you to retire at age 64 confident that you will never run out of money. If all you know is that you are entitled to the age pension at age 67 so you wait until then, you may work longer than you need too.

It is never too early to start planning ! That is especially the case between age 60 and 67 if you think you may put in realm of the centrelink age pension.

If you are thinking about retiring in the next 3-9 months you should take advice now as there beneficial strategies that may apply for you.

We do have appointments available for new clients in October and November 2022 so book now.