Boosting your age pension

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The new pension rates have come into effect – don’t spend the increase all at once though.

New Rates – singles

For single people the maximum age pension they can receive increases from $772.60 per fortnight to $808.40. This includes both the normal supplement and the ‘new’ clean energy supplement This equates to a maximum annual payment of $21,108 and is an increase of $17.10 per fortnight is equal to 2.2%.

New Rates – couples

For couples the maximum age pension they can receive increases from $582.40 each per fortnight to $609.40.This also includes both the normal supplement and the ‘new’ clean energy supplement and equates to a maximum annual payment of $31,689.The increase of $27 each per fortnight is equal to 4.6%.

 

The Clean Energy Supplement is a new payment introduced to help those eligible to offset any impact made on the cost of living by the carbon tax.

How to maximise your age pension entitlement

Spend money on renovations.
As your home is not asset tested this can ensure your home is ready for retirement and shouldn’t need major work done for some time AND will also reduce the amount of assets used to calculate your pension eligibility.

Be careful though that whilst this may help boost the amount received from the government it will also reduce your savings and access to cash.

Make a gift
You can gift $10,000 per annum or $30,000 over 5 years without effecting your entitlement

Be careful with both of the above as generally what you gain from Centrelink is far less than if you simply keep your funds invested.

Boosting ‘younger’ partners super 
If you are in a relationship whereby one partner is older than the other, the younger partner’s superannuation is not taken into account in determining the older partner’s pension eligibility. So there may be an argument for boosting this partner’s super before the older partner retires, possibly even using strategies such as splitting the older partner’s super by transferring contributions to the younger partner’s account

Check what you are earning on your funds
Retirees also need to look at what they are earning on such things as bank accounts, term deposits and investments. ”These will all be deemed to earn a certain rate of return, so you need to make sure you’re at least earning the deeming rate,

Maximise super contributions prior to retiring
Pensions received from your own super are concessionally treated by Centrelink. This means not all of the income is counted towards the income test.

 

Knight Financial Advisors Pty Ltd is a Corporate Authorised Representative of Sentry Wealth Management Pty Ltd (AFSL 227 748) ABN 77 103 642 888. The information contained herein is of a general nature only and does not constitute personal advice. You should not act on any recommendation without considering your personal needs, circumstances and objectives. We recommend you obtain professional financial advice specific to your circumstances.