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Making the most of the available support from government can provide significant benefits throughout your retirement. From regular income payments to discount pharmaceuticals, there are a number of ways to make your retirement wealth go further:
- Register for the Pension Bonus Scheme - if you and/or your partner will continue to work past Age Pension age, the right planning can mean receiving a bonus of more than $30,000 for singles or $50,000 for couples at retirement.
- Use superannuation to exempt savings from the assets test – amounts held within superannuation are exempt from asset testing before reaching pension age, so if you or your spouse has retired before reaching age pension age, you could increase your benefits by moving assets to a superannuation fund.
- Use a super pension to reduce your Centrelink/DVA assessable income – assets you own such as cash, shares and managed funds are “deemed” to provide you with a certain rate of income. This income is then counted under the income test and can reduce your Centrelink/DVA entitlements. Moving these assets into a super pension from which you draw an income, will exempt some of the income from being tested and therefore may increase the fortnightly benefit you receive
- Apply for the Commonwealth Seniors Health Card – if you have reached age pension age and because of your financial position do not qualify for a pension, you may be entitled to the Commonwealth Seniors Health Card (CSHC). The CSHC provides access to many of the benefits available to pension card holders such as discount pharmaceuticals and rebates on rates and utilities.
Our advice covers specific strategies to maximise your Centrelink/DVA benefits and we will support you with the application and keeping Centrelink/DVA informed of changes to your circumstances.
Centrelink / DVA Facts
- The Centrelink Age Pension age for men and women is 65. Women born before 1949 will have an earlier Age Pension age than 65, depending on their birth date.
- Principal residences are generally exempt from social security asset testing.
- Home-owning singles with less than $550,500 in assets excluding their home are eligible for a part age pension. For home-owning couples, the upper amount is $873,500. The thresholds applicable to non-homeowner singles and couples are currently $124,500 higher than the thresholds applicable to homeowners.
- You can gift cash and assets to increase your social security entitlements – but only up to certain limits.
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