As Australian’s, we are very fortunate to have a social security system that takes care of us; acting as our safety net during our pension years. However, it’s not an automated process, and it’s your income and assets which determine your pension entitlements and Centrelink benefits; the more you have, the fewer benefits you are entitled.
Knowing your entitlements and getting your entitlements are two different things. The process can be complicated and lengthy. And, without any prior strategies in place, you may not receive the maximum entitlements that you otherwise receive. Centaur Financial Services can help ensure you receive the maximum pension entitlements and Centrelink benefits you’re entitled.
Discuss the situation with our financial advice team.
Planning is key to maximising pension entitlements and Centrelink benefits. A vital part of any planning process is knowing what your available resources are. This is where Centaur Financial Services can help.
Our role is to utilise leading strategies to assist you in maximising your social security entitlements which can help make your own money last longer. We do this by reviewing your current situating, and time permitting, strategise the best way to optimise your entitlements. We can determine which benefits you are entitled to and guide you through the complicated application process.
The amount of super you have can affect your age pension entitlements. In some cases, it may make you ineligible. How you decide to access your super may also affect your entitlements. Centrelink’s means assessment takes your super balance into account when calculating your age pension amount, and a lump sum withdrawal will have tax implications.
Once you reach your preservation age and have retired, you can transfer your super into your allocated pension account. If however, you have reached your preservation age and continue to work, you can set up a transition to retirement (TTR) strategy, which lets you access some of your super before retiring. Starting a TTP pension, or pre-retirement pension, allows you to transfer some of your super into your allocated TTP account.
In both cases, the super funds can top up Government Age Pension payments you may be entitled to receive. We can explore the best strategy to complement your pension payments while continuing to invest your money.
The eligibility requirements for age pension in Australia are:
The age pension rate in Australia is dependent on your income and assets test and varies for singles and couples. The Normal Rates as follows:
|Per fortnight||Single||Couple each||Couple combined||Couple apart due to ill health|
|Maximum basic rate||$860.60||$648.70||$1,297.40||$860.60|
|Maximum Pension Supplement||$69.60||$52.50||$105||$69.60|
Superannuation is counted as an asset, and as a single, you can have up to $268,000 in assets before it affects the age pension you receive. Once assets exceed $268,000, your pension is reduced by $3 for every $1000.
There are two tests for age pension; income and assets test. The assets test looks at assets such as business assets, investment properties, shares, house contents, superannuation, cars, boats and caravans. It’s important to note that your home is not classed as an asset. Overseas assets are also taken into account.
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