The assets test affecting age pensioners will change on 1st January, 2017.
The effect will vary from person to person (or couple to couple), depending on circumstances. Broadly speaking, those who have smaller amounts of assets may see their pensions rise, whereas those with bigger amounts, could see their pensions reduce, or cease altogether.
In order to avoid nasty surprises, people receiving an age pension, should undertake the following three steps:
• Check whether the changes will affect you, and if so, by how much.
• Determine whether there is anything that you can do to overcome any loss of income.
• Implement the changes.
The above approach is fairly straightforward, but there are unavoidable complications in navigating the Centrelink rules. Even knowing all the possible actions open to you can be a challenge. For example certain types of annuities have valuable Income and Assets test treatment, and can add to your income and also allow you to keep more age pension than you might otherwise be entitled to. It all depends on circumstances.
Professional advice can help you reach the best outcome. We at Black Swan Event Financial Planning are available to help.
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